Commission questions legality of student loans clampdown

Photo / Mark Mitchell

The Human Rights Commission has given a warning that Government plans to restrict older people's access to student loans to save cash may amount to illegal discrimination.

Tertiary Education Minister Steven Joyce this week confirmed funding for tertiary education would be cut in tomorrow's Budget with savings mainly coming from tightening eligibility for student loans for over-55s and for students on some courses.

The Human Rights Commission yesterday said it had concerns about "any arbitrary age-related policy that restricted the ability of students to upskill and retrain".

"Such a policy would potentially be unlawful discrimination under the Human Rights Act," said Equal Employment Opportunities Commissioner Judy McGregor.

She urged the Government to explore "non-discriminatory ways" to recover student loans.

Dr McGregor's comments come after criticism from the Greens, as well as Grey Power and the Union of Students Associations that the plan was discriminatory and possibly in breach of both the Human Rights Act and Bill of Rights Act.

But Mr Joyce yesterday said he had sought advice from officials and was satisfied the change was consistent with the Bill of Rights Act. "We would still look to retain loans for fees, it would be things like living costs that we would be concerned about."

Mr Joyce told the Herald the Government wrote off 70 per cent of the $25 million it loaned to students aged 55 and over each year. Loans for fees account for about $15 million of that.

"There isn't enough time left in their working life to repay their student loans, and while we want people to retrain, we need to make sure they are not borrowing money that they'll never get to pay back."

But Grey Power national president Roy Reid said he was concerned the loan restrictions would take place as pressure was growing to lift the age of eligibility for superannuation.

Many workers were physically unable to continue in their existing jobs well before reaching the current age of eligibility at 65.

"If they've got to retrain to do work they are capable of and that requires tertiary training, then they're really going to be disadvantaged."