Students who work over the holidays to save for the following year could be forced to make loan repayments.

Alliance Party Tertiary Education Spokesperson Richard Mitchell says students make very little money during the year, and holiday jobs pay for basic living expenses for the following year.

He says comments by Revenue Minister Peter Dunne complaints that managing student loans was “cumbersome” and difficult to maintain for the Government were crass.

“Is he more worried about the education of young New Zealanders carrying billions of debt to fund his personal tax cuts, or is his big worry the paperwork the user pays system has created?”

Mr Mitchell says the simple way to make student loan management easy to maintain would be to abolish student loans, as the Alliance proposed.

“This way we get rid of a whole level of unnecessary bureaucracy and send the message that we want to encourage all young people to get an education, regardless of their background.”

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

The proposed changes will see the threshold changed to be weekly, fortnightly or monthly, in line with an individual’s pay period.

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

The Alliance Party supports a fully funded, high quality and free public education system paid for by progressive taxation.

This weeks Trans Tasman political newsletter contained statements from Government officials that they were looking at making changes to the interest free student loan policy.

Alliance Tertiary Education Spokesperson Richard Mitchell says the National Government gives with one hand and then takes away with another.

“Obviously National’s 10% bonus policy was just a way of softening everyone up before they introduced their real motives.”

Student debt current sits at more than $10 billion. The former Labour-led government introduced interest free student loans in their final term in government.

“Student debt is out of control. Students and graduates are finding it hard enough to pay off their existing student loans. Re-introducing interest will only further burden students, graduates and their families,” says Mr Mitchell.

The Alliance Party urges the Government to retain the interest free student loan policy.

Download Pamphlet

The New Zealand campaign to end student debt “Drop Debt Today” has joined an international campaign in supporting “Reclaim your Education – Global Week of Action 2009″ held this week.

Organised by the International Student’s Movement, the global week of action aims to promote free education.

Drop Debt Today campaign organiser Richard Wallis says “The reason we campaign for the wiping of all student debt is because education should be free for everyone.”

“By putting up barriers to education in the form of fees and debt we are preventing people from being able to better themselves, and preventing people from being able to get together enough money to buy their own home.”

Mr Wallis says the global week of action has two goals.

“On one hand we struggle for free access to education for all. On the other hand we also strive for emancipatory education.”

He says the campaign is opposed to the increasing commercialization of education.

Mr Wallis says that there are a number of ways people can get involved in ths global week of action from linking in to the campaign on their social network sites, to writing to their MP or the PM reminding them that education should be accessible to everyone, not just those who can afford it.

Average student debt[1] has risen by 54 percent since 2004 and is now $28,838 according to major new research released today by the New Zealand Union of Students’ Associations (NZUSA).

Other main findings of the research are:
- Average student debt is over 147 percent higher than in 1998
- Students are looking beyond the student loan scheme, to bank loans, overdrafts, and credit cards to pay for essential living costs
- Core living costs (food, accommodation, transport) have increased significantly
- 88 percent of students consider that student loans will impact on their ability to buy a house

Full Article: http://www.scoop.co.nz/stories/ED0801/S00025.htm

DDT Spokesperson Richard Mitchell says “the Sheriff of Nottingham would be pleased with such a slimy scam.”

National education spokesperson Anne Tolley doesn’t even get a “F-” for her announcement, according to Mr Mitchell.

He says Ms Tolley’s comment that “shorter repayment times will mean young New Zealanders will be debt free earlier” was a stunning achievement in Orwellian political double-speak.

“This policy does not mean young New Zealanders as a group will be debt free earlier,” says Mr Mitchell.

“What it means is that an ex-student earning a high income, or one with rich parents in a generous mood, will get an extra helping hand from the Government.”

“Something must have got into the water supply at Parliament for such a bizarre comment to be made. With students crippled by $10 billion plus of debt, the Government should just be honest and say they don’t give a stuff about the average student and are just interested in upper middle class welfare.”

Ms Tolley’s outlandish claim that National’s policy means more money in students pockets each week and “more freedom to make major life decisions such as travel, starting a family or home ownership” was equally bogus.

“This heartwarming sentimental streak by the Minister would be slightly more convincing if these major life decisions for wealthy ex- students were not being subsidized by less wealthy ex-students,” says Mr Mitchell.

“The majority of ex-students will be waiting even longer to accomplish even minor life decisions, as they struggle to travel to work, scratch around to pay for a date, or pay their rent for another week, let alone the big stuff Ms Tolley is talking up.”

“Perhaps this is what they mean when they talk about the cashless society.”

It is difficult enough for people earning the average wage to make the compulsory payments on their student loans, he says.

“Only those earning significant incomes will be able to take advantage of the voluntary repayment bonuses.”

The scheme, introduced before the 2008 General Election by the then Labour Government, means borrowers making a voluntary repayment of $500 or more would get an extra 10 percent bonus from the government.

National have now extended the scheme to those with student loans living overseas, not limiting it to repayments made 10 years after a person graduates, and allowing the $500 repayment to be made in more than one transaction.

Mr Mitchell says giftwrapping the noxious booby trap of youth debt with platitudes and political hogwash is not going to make any difference whatsoever to the problem.

“Education is a right to all New Zealanders and should not be made available to only those who can afford to participate. The immediately introduction of free tertiary education would solve all issues related to student debt and student loans.”

Mr Mitchell says the goal of the Drop Debt Today campaign was to wipe all students loans and introduce free tertiary education.

“It is time the Government acted in the best interests of the entire country rather than acting in the interests of a wealthy minority,” says Mr Mitchell.

Read Full Study Here: http://www.educationalpolicy.org/pdf/Global_Debt_Patterns.pdf

“Student debt is now at over $10 billion dollars and rising. The party believes that education for all is a right not a privilege. Student loans are out of control. Let’s drop the debt and give young people a good start in life,” says Mr Mitchell.

The Alliance is calling on the government to wipe all loan repayments and introduce a free education system. Only by making education free can we hope to encourage more people into higher education providing a more secure future for all New Zealanders.

Mr Mitchell also announced a “Say it Your Way” competition where all New Zealanders can express their dissatisfaction with the student loan system in their own way. People can make a short film, write a poem or design a poster. The choice of medium is theirs.

“We encourage everyone to get involved in the campaign in whatever way they can. From signing the petition, sending an email or making an entry for the competition, all New Zealanders can get involved in this campaign to get the current National-Act-Maori Government to end student debt,” said Mr Mitchell.

Visit the website, http://www.dropdebttoday.com for further details.

The horror stories I heard while on the campaign trail this last election about people struggling to make ends meet because of thier student loan repayments have convinced me even more that student loans need to go.