Monday 21 May 2007

Student debt burden makes saving impossible for many

Alliance Party Education spokesperson Richard Wallis says that if the Government was serious about helping New Zealanders to save and get into their first home, then it would do away with student loans. Mr Wallis says most New Zealanders find it difficult to save as it is, without having to cope with the extra burden of a student loan repayment.

"The Alliance policy of wiping student loans would be a significant step towards helping many people put together a deposit for their first home."

He says that the only long term security for New Zealand's future will be to ensure that all New Zealanders are educated, and make sure there are no barriers or disincentives to education.

"Free education would keep skilled workers in New Zealand, and it would begin to rebuild a sense of commitment and trust between the generations that has been so damaged by the right wing policy of divide and rule."

Mr Wallis says that student loans and user pays education are just one example where the Labour Government has kept on with the right wing policies of the past.

"While overseas owned corporations got a budget tax cut, New Zealanders are now carrying $9 billion of student loans. We are seeing a transfer of wealth from the workers to the owners." The Alliance education policy supports a world class, free education system with no fees and full student allowances, paid for through progressive taxation.

ENDS

© Scoop Media