National to restrict student loan borrowing

Borrowing money to study be tougher under the National Party's education policy. File photo / NZ Herald

Students borrowing money to study will face tighter restrictions under National's education policy, announced today.

Tertiary Education Minister Steven Joyce said National was committed to retaining the interest-free loan scheme but planned to adjust the terms for borrowing.

"Some students are borrowing for very large course loads in a single academic year. In many cases this is because they change their mind about what they want to study more than once in a year," Mr Joyce said.

"National will consult on and limit the amount of credits students can enrol in, in any given year. This will prevent taxpayer money being wasted in this way, and help prevent borrowers building up big loans which bring no benefit in terms of qualifications gained."

Earlier this year the Government announced plans to crack down on outstanding student loan debt, and today said it would continue to do that, particularly by targeting debt held by those who had moved overseas.

Mr Joyce reiterated the party's plans to link funding for tertiary institutions to the performance of students, which he said would drive institutions to do better.

The party also announced a "Skills Plan" to address the country's skills shortage and improve the industry training sector.

Mr Joyce said National would encourage rationalising the sector to reduce the number of separate industry training organisations, put more funding into industry training, and provide strong incentives for employers to employ and train young people on benefits.