Interest-free loans need scrutiny

Interest-free loans need scrutiny

BusinessNZ says action is needed on the country’s $11 billion student loan debt.

Chief Executive Phil O’Reilly says recent moves to tighten access to the student loans scheme were appropriate, and now it is timely to scrutinise the interest-free status of the loans.

“It is very apparent that interest-free loans are unsustainable and the policy should be reviewed.

“Taxpayers need to know whether the public benefits outweigh the cost.

“Restricting access to education in order to pay the interest on student loans is not good policy.”

Mr O’Reilly said more discipline around repayment of student loans would help get more focus on the skills needed by employers.

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28 Jul, 2010

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