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Wednesday, July 28, 2010

John Key wants to increase your student debt

$11b student loan debt a disaster, says Key
Fresh calls have been made for interest to be reintroduced on student loans after Prime Minister John Key said student debt was a disaster economically. "If you're an investment banker – not that I am these days – you'd say it's a disaster of a loan book," he told students at Victoria University's Weir House yesterday. "It's $11 billion, roughly, at the moment and we collect 53 cents in the dollar, that's it. Fifty-three cents in the dollar. If you just sat there, logically, you'd say there has to be a better way of doing it."

Our boy in the bubble (John Key) says Student debt is a mess and National would like to increase it. I'm not sure what spooks me more, the desire to increase the debt burden on students or the fact that John Key keeps slipping into his 'If I was a merchant banker I'd do blah blah' mode. Newsflash to boy in the bubble, you aren't running an investment bank John, you are running the educational needs of a country you clown.

What is hilarious is that interest free student loans were created to help keep student in NZ rather than have them leave the country, remember that 'brain drain' National spent 9 years screaming about? Well apparently it's not so scary after all and National want to cut lose one of the few policies they have that can reward students who don't leave with their education for overseas.


At 28/7/10 7:27 a.m., Anonymous Keith Johnson said...

Please include my Blog: 'Keith Johnson Wellington NZ' in your future rankings.

It is found at: http://kjohnsonnz.blogspot.com

Blog has operated since November 2009 - current individual hits around 4,600 - Sitemeter stats available

All the best, Keith

At 28/7/10 9:28 a.m., Anonymous anfield1973 said...

53c in the dollar.

Much better return than all those failed finance companies...


At 28/7/10 3:18 p.m., Anonymous Anonymous said...

congrats for passing interest free loans repayments students well over fifty percent maybe we'll call off the sit-in or occupation as long as you leave the interest free alone...

At 28/7/10 5:10 p.m., Anonymous aj said...

The only cost in the long run is the interest cost foregone by govt, whom are probably borrowing this money at very low rates {if indeed you count it as part of 'borrowing' instead of general taxation. In the long run so long as employment is near full, repayment will gradually climb to near 90%. Where are the stats. What is the amount repaid, for example, on loans that were taken over 3-5-7 years ago or more. What are the projections. Key is full of shit. Think ACC scare.

At 28/7/10 7:24 p.m., Anonymous Anonymous said...

As soon as interest is reintroduced it makes it more logical to take my engineering degree overseas and pay it off with pounds or euros, which is what I probably would do.

At 1/8/10 10:51 p.m., Anonymous Anonymous said...

Thank god for the odd good journalist.
Rob Stock in todays Sunday Star Times calls Key out on his bullshit with a perceptive brave and complete rebuttal.


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