Media release for immediate release - BPW NZ

Women will suffer financially

The increase in student loan repayments announced by the Government today will unfairly disadvantage women says the New Zealand Federation of Business and Professional Women.

The Government has indicated they will be making changes to the student loans scheme including increasing the repayment rate, which will force all graduates to pay more each week.

“Women will ultimately suffer financially if this happens” says Carolyn Savage, President of the New Zealand Federation of Business and Professional Women.

“Women graduates earn less than men so their ability to repay their student loan is diminished”

Research carried out by the Ministry of Women’s Affairs shows that in their first year of work, graduate women earn six percent less than male graduates with the same degree and after five years in the workforce this gap is as wide as 17%.

“The financial burden of the gender pay gap is worsened by the disadvantage women given the tradition of the woman as the primary caregiver

“When women take time out to have a family, their income is mostly non-existent which extends the repayment period

“We fear that the increase in payment amounts will force women in to poverty

The New Zealand Government has international obligations to not institute legislation that will discriminate women.
“We call on the government to do some analysis on the effect their decisions regarding the student loan scheme will have on women financially and keep to their international obligations"

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