Alliance Gets It Wrong...againEducation
The Alliance Education spokesperson has got it wrong again - this time with her 'revelations' over the changes to the Student Loan Scheme.
The Government today announced improvements to the Student Loan Scheme which will restrict the amounts of money students can borrow at any point in time, while also making it easier for people to make in-roads into paying off their debt.
Included in the changes are adjustments to the repayment regime from the 2001/2002 tax year which will see high income earners required to repay their loans at the rate of 15 cents in each dollar of income earned over $50,000.
"Liz Gordon's claims that the Government has "increased the top tax rate of 221,000 people with student loans to 48 cents in the dollar" is completely wrong.
"This is not a tax, just like mortgage repayments aren't a tax, all it is is debt repayment.
"Estimates from the Ministry of Education show there are roughly 3,300 students earning over $50,000. Where Liz Gordon gets the figure of 221,000 students affected is anyone's guess.
"In addition students will only repay 15 cents in each dollar of income over $50,000. Repayments stay at 10 cents in each dollar for income between $49,999 and $14,716.
"The changes are designed to make the scheme fairer, reduce the debt burden on students, reduce the time they spend repaying loans and reduce abuse of the scheme," Mr Creech said.