A significant factor in the 2005 election was Labour’s campaign promise of interest free student loans. They won the election. This policy was later projected to cost about $0.5b per year.
NZ First has a much bigger campaign promise – to wipe loans for students who stay and work in the country. They say it will cost $4.6b a year – but that may not take into account the likely increase in student numbers.
Stuff: Winston Peters promises to wipe student loans
New Zealand First is promising to wipe student loans for new students who stay and work in the country for five years, and it says that it will only cost $4.6b a year.
People who bond themselves to regions in need of workers or study for less time could wipe theirs even faster.
Under the proposed scheme, the universal student allowance of about $200 a week would cover living costs while the government would cover all of student’s tuition fees upfront.
Every year of study would bond a student to one year of work in New Zealand. So a student who completed a three-year BA would only need to work for three years in New Zealand to pay off their entire loan.
However these fully-funded places would not be guaranteed, with industry groups and a reinstated Careers NZ setting a number of jobs they would need when the degree ended. There would be competition for fully funded places, but also safeguards to preserve diversity.
The policy would only apply to new students.
Martin said the scheme would cost $4.63b a year – only about half a billion more than the Government currently spends and 1.86 per cent of GDP – but both Labour and National said it was fiscally unachievable.
They can’t do it without either National or Labour support and neither could afford that sort of budget without having to significantly cut elsewhere.
She said it was more likely that she could negotiate the scheme in a coalition government with Labour, as the National Party and ACT would likely be philosophically opposed. Labour agreed – broadly.
“If we’re in a position to negotiate with other parties, then obviously more funding for education is something that we are going to be happy to talk about,” Hipkins said.
I expect Labour will have their own budget bribe priorities, and National won’t want to give up their tax cuts and family support package.
Gezza
/ June 27, 2017PDB
/ June 27, 2017So just one of Winston’s many spending policies costs this much (and no doubt is understated)?? Most students would already stay in NZL to work after qualifying so this is really just giving away free taxpayer money to them and encouraging those that would have left to now stay, with you guessed it, using free taxpayer money.
With Winston always look past the populist spin as the devil is always in the detail. This is really just a big bribe for the young (like the Labour party in 2005) that would continue to burden the economy for years to come.
Blazer
/ June 27, 2017how dare Winston try and bribe voters!Thats the Natz…job…tax cuts…anyone.
Shane Le Brun
/ June 27, 2017A targetted scheme identifiying trades in demand and bonding them for 2.5 years for every year of study could work better. By targeting critical shortages, they can also justify using domestically sourced labour and clamp down on immigration as NZF always has a hardon for.
PDB
/ June 27, 2017Tax cuts for people paying tax compared to students getting free money (if they stay a paltry 3-5 years in NZ) to upskill and earn lots of money – hardly apples and oranges. Shane’s idea of 2.5 years to every year would work better but still not ideal considering the overall cost to taxpayers.
Shane Le Brun
/ June 27, 2017The Defence forces “bond” people in apprenticeship trades to ensure a return on investment, no reason the crown at large cant do the same, especially with medical profession etc where we seem to have constant shortages, perhaps a negative interest rate for critical skills shortages folk to remain in NZ? -2.5%PA? problem with health industry is theres no money to actually pay the people if they were to fill a shortage, such as in mental health currently.
PDB
/ June 27, 2017Kiwiblog: “Universities NZ research has found:
New Zealand university graduates earn between $1.3-$4 million more over their careers than a non-graduate after their costs of study are taken into account.”
Should taxpayers, most of which are not in the highest paying jobs, be fully funding future university graduates who over their lifetime will make on average $2.5 million more than them?
Gezza
/ June 27, 2017No! Some University graduates are utter bastards. Especially *some* *entitled* ones with PHD’s!! whose name I won’t mention but we all know who it is! 😡
duperez
/ June 27, 2017We all know? I don’t , but then I don’t follow the gossipy stuff on here. Unless you’re referring to some parliamentary person like Dr Nick Smith. I admit I’ve heard him called a bastard. Often. The word “useless” usually prefaces it.
Gezza
/ June 27, 2017Well, too bad. I don’t like to dob anyone in particular in, even if they live up in the far North.
Blazer
/ June 27, 2017speaking of the far north..where is the main man..PartisanZ..the slayer of frothing right wing…bullshitters?
Gezza
/ June 27, 2017Putting together a short & pithy letter to the editor of the Northern Advocate?
Blazer
/ June 27, 2017you can never complain about ..lack of calories with brother Parti…..
Gezza
/ June 27, 2017PDB
/ June 27, 2017Probably found another white-apologist, nonsense-riddle speaking foamer to talk to…….
Blazer
/ June 27, 2017I can see why you denigrate him….he used to slice and dice your arguments on a daily basis in a most decisive….fashion.
PDB
/ June 27, 2017Ha! Probably why he’s disappeared then………to be fair anybody would look better than your feeble attempts at debating.
PDB
/ June 27, 2017Just in from PZ:
Yes there are two of me,
Number 1 and 2 Parti,
We look at each other in the glass,
and agree neoliberalism is an ass.
Yes there are two of me,
We blame all our problems on John Key,
on white privilege and inequality too,
and think it’s time for a right-old coup.
You may wonder why I talk a lot,
It’s to cover the fact I don’t know squat,
My posts are riddles that are far too long,
I’m not appreciated here so now I’ve gone.
.
Blazer
/ June 27, 2017not bad,not Shelley or Tennyson…but the average travelling,bluebottle..will probably….like/buy ..it.