Students call to keep interest free loans

Student leaders are calling for the government to continue giving interest free loans to students.

Sophia Blair, co-president of the New Zealand Union of Students Associations, says interest free loans made tertiary education more affordable, particularly for under-represented groups, and reduced loan repayment times significantly, all of which were enormously beneficial to both students and the country.

Times are tough and universities and polytechnics are under-funded, but revoking interest-free loans is not the answer to the problem, she says.

"What we need is for the government to step up and fund the sector appropriately and for more creative and innovative discussion on addressing the needs of the sector, rather than short-term thinking of this kind," she says.

Student debt is already $10 billion and growing and will hit $20b by 2022.

Adding interest on to student loans will further increase this burden on students and create long term consequences for New Zealand, says Blair.

- © Fairfax NZ News