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Lincoln University - Source: ONE News -
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Student loan borrowers will qualify for a voluntary repayment bonus whether they are based in New Zealand or overseas, Tertiary Education Minister Anne Tolley announced on Monday.
Before the election, National said that borrowers making a voluntary repayment of $500 or more would get an extra 10% bonus from the government.
National's scheme is actually a little more generous than the one it promised before the election because it will apply to people with student loans who live out side New Zealand.
Tolley said it had been decided to extend the scheme to those with student loans living overseas, not limit it to repayments made 10 years after a person graduates, and to allow the $500 repayment to be made in more than one transaction.
The scheme is designed so that all borrowers making a payment over and above their compulsory student loan repayments can receive the bonus, provided they make their payments when they are due.
Critics argue that the voluntary repayment of $500 or more favours helped those wealthy enough to pay more than the minimum contribution.
However, Prime Minister John Key does not agree with the suggestion.
"I don't think the world is perfect but we've got one objective and that is that we want New Zealanders who have a student loan to be able to repay that loan as fast as possible," says Prime Minister John Key.
Voluntary repayments made after April 1 will qualify, and the first bonuses will be credited after the end of the 2009/10 tax year.
"Shorter repayment times will mean young New Zealanders will be
debt free earlier. This means more money in their pockets each week
and more freedom to make major life decisions such as travel,
starting a family or home ownership," Tolley said.
Click here for more detail on students' voluntary repayment bonus
