New annual cost for student loan borrowers
“The Government is giving students $50 with one hand, and then taking it off them again with the other” says Labour’s Tertiary Education Spokesperson Maryan Street.
“Today Steven Joyce put students under even more financial pressure by introducing a new annual cost for student loan holders.
“This completely wipes out any benefit from the government’s much hyped legislation last year to provide bonus payments to students who pay additional lump sums off their loans.
One of the first tertiary education policies National implemented was a 10 percent voluntary repayment bonus. Students making a voluntary repayment of $500 would get a $50 bonus from the government.
“This Government’s new $50 annual administration cost for anyone who holds a student loan moves to cancel any kind of bonus out. The government is simply giving with one hand and taking away with the other, using this new fee to pay for their own legislation.
“This increase in costs coupled with a round of announcements about limitations on student loans, changes in entrance criteria and tertiary funding all make tertiary education increasingly for the few and not the many”, said Maryan Street.
