Interest write-off saves Wellington students $4.6 million

Wellington students have saved almost $5 million in interest charges off their student loans thanks to the Government’s ‘no interest while studying’ policy.

The Ministry of Education figures were released today by Wellington Labour MPs Annette King and Marian Hobbs, at the start of orientation week. Nationally students saved $68.5m last year, the first year of write-off. All full-time and part-time low-income (those earning $24,596 and less) students quality for a full interest write-off while they are studying.

Ms King and Ms Hobbs said Labour had kept its word to cut the cost of tertiary education and would be campaigning hard this year to retain the student vote.

“Making tertiary education more affordable has been a key priority for the Labour-Alliance Government.

“The Government has spent more than $800m over a four-year period on a series of initiatives, including wiping the interest off student loans, freezing fees and introducing new programmes for students to gain relevant qualifications, like Modern Apprenticeships.

“For the average student, this means a saving of $900 annually in interest charges and $1000 less in tuition fees, leading to smaller loans and shorter repayment times.

“Wellington students are benefitting from these changes: Victoria University students have saved $3.7m – Wellington Institute of Technology students $100,000, Whitireia Community Polytechnic $600,000, and Wellington College of Education $200,000 – worth of interest charges on their student loans. As well, Wellington students are among the Massey University student roll who have saved $5.8m on Massey’s various campuses.

“Labour remains committed to further lowering the cost of tertiary education. In May, Tertiary Education Minister Steve Maharey will publish a public consultation document on options for reform of the student financial support.”