Students against interest proposal

Otago University Students' Association president Hugh Baird. PHOTO: GRETA YEOMAN
Otago University Students' Association president Hugh Baird. PHOTO: GRETA YEOMAN
A report recommending the return of interest on student loans has caused concern among some tertiary students, but the Government has shown little sign of following the advice.

The report from the Productivity Commission, released on Tuesday, offered a range of suggestions to the Government over tertiary education, including reinstating interest on loans.

Tertiary Education, Skills and Employment Minister Paul Goldsmith said the Government would keep an "open mind'' to the recommendations, except over the idea of reintroducing interest on new loans.

"We do not want to see young people starting their working lives with unmanageable debt,'' Mr Goldsmith said.

He said the Government was "committed to retaining interest-free student loans'' and half of graduates who stayed in New Zealand after completing their studies would repay their loan in under six and a-half years.

Otago University Students' Association president Hugh Baird said the association would "strongly oppose'' any changes.

However he did not believe either the current government or any incoming government would make changes.

"Putting interest on student loans is not the smartest move.''

David Fontein
David Fontein

Zoe Hancox
Zoe Hancox

Kain Sleep
Kain Sleep

Otago Polytechnic Students' Association president Dylan Mead declined to comment.

One university student, who declined to be named, said while she understood the reasons for putting interest on loans, it would make it more difficult to encourage students to study.

"It's already so expensive.''

Kain Sleep (20), a third-year University of Otago theatre and English student, said it was always a "tough issue".

"Even if it’s negative, [the idea] might get a discussion started. I don’t like it personally. It would have made a difference [in deciding whether to study or not].’’

Zoe Hancox (20), third-year Otago Polytechnic nursing student said: ‘‘I just think it’s pretty unfair to put interest back on student loans. Everyone doing study is trying to improve their knowledge. It will not encourage people to study.’’

David Fontein (20), third-year University of Otago finance and science student had a mixed view.

“I can understand the argument for both ways. Older generations had subsidies or smaller fees. I also know it would take more time to pay off. I also understand the interest-free issue of funding university students.’’

GRETA.YEOMAN @thestar.co.nz

Add a Comment

 

Advertisement