Student loan changes scrapped

Changes that would have seen students paying off their student loan in their holidays have been scrapped.

Currently people with student loans have to make repayments if they earn over $19,084 a year.

The changes would have switched the threshold to weekly, fortnightly or monthly, in line with an individual's pay period.

The total yearly threshold will remain unchanged, however students who work full time during the holidays may have found themselves over the $367 weekly threshold and having to make payments while they save for the year ahead.

Revenue Minister Peter Dunne said the change had prompted "several hundred" written responses in opposition.

"The maximum amount we might be asking students to repay might be $500 over the holiday period, but that's still a hell of a lot of money for students," he told The Dominion Post.

"They may well end up paying off the loan but borrowing more to recover."

New Zealand Union of Students' Associations co-president Jordan King said the Government had seen sense.

- NZPA