Student loans being repaid earlier, Mallard says

Students are paying off their loans more quickly than in the past, Education Minister Trevor Mallard says.

Student debt totals $6.91 billion and the number owing more than $100,000 has increased, according to Inland Revenue Department figures issued yesterday.

The University Students Association says the Government has not done enough to help and should introduce a universal student allowance.

But Mr Mallard said today that since the Government came to power in 1999, the average repayment time had dropped from more than 14 years to less than 10.

"We have done a number of things to help students and so far it has cost (the Government) about a quarter of a billion dollars," he said on National Radio.

"It is beginning to work. We have made it easier for people."

Mr Mallard said the Government had lowered interest rates on student loans, and half of every dollar repaid was taken off the debt owed.

He said students with very high loans, such as one who owes $249,747, were usually undertaking more than one course and were paying for tuition which had always been outside the state system.

He gave training for airline pilots as an example.

Those with high debts usually gained valuable degrees, like doctors and dentists, which enabled them to earn high salaries and quickly pay off their loans, he said.

- NZPA