All of Helen Clark’s election bribes are untouchable: Bill English won’t charge interest on new student loans

New students should pay interest on student loans, the Productivity Commission says after a review of the tertiary education sector.

But the government and Labour say it won’t happen, while the Green Party has called that recommendation and others a “radical ideological experiment” on a whole generation of students.

The New Models of Tertiary Education report follows a year-long inquiry into the sector and also proposes abolishing University Entrance and improving careers education for young people.

As well as reintroducing interest to student loans, the reforms also included a proposal that the repayment threshold be raised.

Failing that the commission wants to see balances adjusted for inflation based on the consumer price index.

Things that are free are always abused. ?There has to be at least a marginal cost to it, otherwise things get out of hand – fast. ?Who can remember having all that physio, free, care of ACC?

Of course, the other leaders are aghast at the mere notion of charging interest on taxpayer money. ?

Labour leader Andrew Little said he didn’t think much of the interest proposal at all.

“You’ve got a generation going through university now who face the very real prospect they’ll never be able to own their own home so why would we add to the impediments they have already for going down that path by putting interest back on student loans,” he said.

“It just doesn’t make sense in this day and age and we won’t be doing it.”

But if you were relying on National to return some sense into the system, you’ll be disappointed.

Prime Minister Bill English said interest was off the agenda.

After “years of arguments” the student loan scheme was settled and “we don’t want to change it”, he said.

The way things are looking, National are going to desperately need the National-voting students this September.


– NZN via Yahoo!