Otago survey of bank managers shows urgent need for loans scheme study
The Ministry of Education's refusal to investigate the economic implications of the student loans scheme has been
questioned by the Alliance's education spokesperson Liz Gordon.
The report from the Otago University Students Association shows that 83% of bank managers considered student loans
affect whether or not they would give people loans. Dr Gordon's own research released last week shows the government was
not researching this aspect of the student loans scheme.
'The government assumes that the loans scheme has no secondary effects. The Otago study show differently. People with
student debt can be turned down for loans, and in particular mortgages, and many have been,' Alliance Education
Spokesperson Liz Gordon said.
'The student loans scheme is stunting the development of too many young New Zealanders. Young people are being forced to
put off buying a house and having a family because of the huge debt burden they face
'What this report doesn't show is that many young New Zealanders with loans will never get to the bank manager until
they have repaid their loans. For the 10,000 people with debts of over $35,000 this means any hope of owning their own
home is years away.
'The Alliance is the only party that is going to do anything about the causes of student debt. Only the Alliance has a
plan to reduced fees, introduced student allowances and abolish the need for the student loans scheme in the future.
'Max Bradford will deny there is a problem. However the Otago student have undertaken research that Bradford has not
because his ministry says it is too hard.
'A party vote for the Alliance will mean an end to the student loans scheme and the chance for young people to have the
same chance their parents have had,' Liz Gordon said.
Visit http://www.alliance.org.nz for more information about the Alliance