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Source: ONE News -
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Students are concerned about proposed changes to the student loan scheme, including a $50 administration fee.
David Do from the New Zealand Union of Student's Association told TVNZ's Breakfast programme the idea of a fee is not going to make it easier for the "hundreds of thousands of us who have a loan".
But Tertiary Education Minister Steven Joyce says 42% of the total tertiary budget is spent on student support through allowances and student loans.
He says Australia only spends about 31% of its tertiary budget that way and the OECD average is 19%.
Joyce says taxpayers are currently writing off about 47 cents in every dollar that is advanced on a student loan. But he says the government remains committed to interest-free student loans.
Final decisions will be detailed in the Budget.
Options currently being considered include: Focusing students on performance, by requiring them to pass at least half of their (full time) courses over two years to be able to keep borrowing from the scheme; introducing a lifetime limit of access to student loans for an undergraduate degree; requiring permanent residents and Australians to wait two years before they can access the student loan scheme; increasing and extending the administration fee for student loans to ensure it covers more of the actual costs of loan administration throughout the life of the loan.
Do says the fee proposal would contradict one of the government's major tertiary policies which was a 10% voluntary repayment bonus.
"This $50 account fee effectively wipes that out so that effectively you need to pay at least $1000 to get a net $50 bonus, it's actually making loans harder to pay off and it contradicts one of National's policies," Do says.
He says everyone benefits when New Zealand has an educated population and part of the interest free policy was to encourage people to stay in the country.
Do says they are also concerned over the other proposed changes such as those who are stretching their degrees out for a legitimate reason who will be hurt by the time limit.
But Joyce says the changes would result in savings which would then be recycled to make way for more student places in our universities and polytechs.
"This is particularly important if we are to maintain this year's record number of student places."
Labour's Tertiary Education Spokesperson Maryan Street says Joyce has put students under even more financial pressure by introucing this annual fee.
She says it wipes out any benefit from the "much hyped" legislatons last year to provide bonus payments to students who paid additional lump sums.
"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", says Street.
Statistics by StudyLink show that more students are borrowing more money through the student loan scheme, with total loan drawings increasing by 20% on this time last year.
Statistics by StudyLink show that more students are borrowing more money through the student loan scheme, with total loan drawings increasing by 20% on this time last year.
Do you think students have it too easy? Have your say on
the messageboard below.
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Add a Comment:
Post new commentMacolnz said on 2010-05-06 @ 13:32 NZDT: Report abusive post
A Yearly administration fee of $50 is nothing as it only amounts to $1,000 over 20 years. That assumes that the student will take that long to pay the student loan off. Each students situation is going to be different. This is still cheaper than if the government had decided to start charging interest on the loans. I know which option I would have.
shadow_matrix said on 2010-05-06 @ 12:18 NZDT: Report abusive post
Seems like a good start. I would have made it $100. How about the people complaining pay the $50 and get a good education. Then you will maybe be smart enough to look back and realise that it was such a tiny amount of money to get upset about.
bta said on 2010-05-06 @ 10:43 NZDT: Report abusive post
You should speak for yourself. If you can just find $50, you have a rich daddy. We pay rent, food and healthcare, commuting costs ++ all on a starter salary, hard to make it week to week, even sometimes impossible, if you need to pay a visit to a dentist or doctor, get it? Most of my schoolmates have part time jobs, can't find a full time job.
bta said on 2010-05-06 @ 10:36 NZDT: Report abusive post
NZ Future under Nationals: Study: easier for the rich, harder for the poor, Income: more for the rich, less for the poor, Living costs: Less for the rich, more for the poor, Tax: less for the rich, more for the poor, NZers will work for Foreigns who bring big money to purchase NZ soil and livelihood, More Chinese in NZ as they will buy our businesses and we all know whom they are likely to employ: Chinese not NZers. The Nationals are doing what is best for their rich mates. Shame
peggysue said on 2010-05-06 @ 09:57 NZDT: Report abusive post
As a mother of three children at University and we live in an area where there is no University, so I children HAVE to go away to further theie education. I compare with the amount of young single mothers in our area who cant get a job so having a baby is the way to get money from the govt(its us the taxpayer) to live.....really??? there is no comparison, between people wanting to better themselves and people who bludge off the system. I think any extra charges on students friggen stinks!!!!