Greens urge review of student loans

By HELEN TUNNAH

The Green Party has urged the Government to stop talking about student debt and revise the loan scheme quickly.

The Government has issued a Student Support in New Zealand discussion document, but it offers few policy alternatives to reduce student debt levels and increase the number of people eligible for tertiary allowances.

Instead Associate Education Minister Steve Maharey has called for submissions on the report.

Student leaders yesterday said they were "extremely disappointed" with the report and promised protests in Auckland and Wellington this week.

Green Education spokesman Nandor Tanczos said even the United Nations had this year criticised the impact of the student loan system on women, in a report on eliminating discrimination.

He said that although the Government promoted a "knowledge" economy, the increased costs of tertiary education affected more than students.

"Fertility rates are declining, the rural sector is finding it difficult to attract professionals, women face a lifetime of debt repayment and home-ownership is fast becoming an impossibility for young New Zealanders."

Student debt has now reached $6 billion, with predictions it will continue to rise for many years.

It takes students on average 10 years to repay their loans.

In releasing the report, Mr Maharey said that although the Government intended to increase the numbers of students eligible for allowances, major and quick policy changes should not be expected.

Any changes would be spread over several Budgets.

The Green Party favours the introduction of allowances for all students, and would write off some student debt.

The Labour-led Government has indicated universal student allowances are not affordable. The discussion document suggested alterations to parental-income thresholds for allowances could see 7 per cent more students receive more financial help.