Interest-free student loans 'stay'

The Government is not going to change interest-free student loans, Prime Minister John Key said yesterday after Labour and student unions questioned National's commitment to the policy.

Labour MP Grant Robertson said National had been worried about the scheme and the appointment of Steven Joyce as Tertiary Education Minister could be significant because he was National's "number one strategist".

New Zealand Union of Students' Associations co-president David Do referred to comments Mr Key made yesterday about the possibility of improving the scheme and said any re-introduction of interest on student loans would be a broken promise to students.

Mr Key reaffirmed his policy stance.

"At the margins, at the boundaries, there are specific issues where, as I understand it, the universities and the student associations have been having some discussions," he said. "But zero per cent loans remain."

- NZPA