Students say Mallard crowing without cause

Tertiary students have been saved more than $250 million in waived interest charges since the introduction of an interest write-off, says Education Minister Trevor Mallard.

But students called the minister patronising for "crowing" about a drop in the ocean of debt.

The write-off policy, introduced in 2000, means that most students are not charged interest while studying.

"Between 2000 and 2004, students have been saved $250.9 million in interest charges that have been written off as a result of this policy," Mr Mallard said.

The change had contributed to a "considerable reduction" in the average repayment time for student loans - down from 14.8 years in 1999 to 9.3 years now. As students began orientation at tertiary campuses around the country it was worthwhile to do a stocktake of the improvements the Government had made, Mr Mallard said.

But Andrew Kirton, co-president of the University Students' Association, said it was just as worthwhile to do a stocktake of what the Government had not done. Student debt was expected to hit $8 billion this year, fees had risen in the last two years and fewer people were eligible for living allowances.

"The write-off policy is good, but in the wider context things are not quite so rosy," said Mr Kirton.

Mr Mallard, visiting Victoria University, also pointed to a drop in tuition fees between 2000 and 2003. That was "cheeky", said Mr Kirton, as most universities had increased fees for 2004 and 2005.