Comments on: Student Loan facts

By: Monique Watson

Monique Watson — Sun, 13 Jan 2013 03:17:23 +0000

At BB,. Shows both National and Labour are cut from the same cloth. Apparently Labour was also planning the ntroduction of National Standards but National got there first. Then bleated incessantly about how awful it was.

By: BeaB

BeaB — Sun, 13 Jan 2013 02:53:17 +0000

cha
What an unpleasant response.
I attended many meetings where Phil Goff explained in some detail the loan scheme Labour was planning.

By: Monique Watson

Monique Watson — Sun, 13 Jan 2013 02:25:16 +0000

I was sat down in our school auditorium in 1992. I was in the seventh form and our class year were told that if we wanted to go to university, then we would be borrowing money off the government and repaying it when we got a job.
It all meant nothing to me. I wasn’t aware that the system had been totally turned on it’s head. One year you were getting a student allowance as of right (I think) and then the next year you were putting your education on tick.
I’d never even used eftpos at that stage. I had a bank account that I deposited money from my job and I withdrew the money if I wanted to buy something. I painted our local picture theater to earn money for varsity but there was a huge disparity between what I could physically earn in the six week break before I left for uni. I don’t have a poor work ethic. I’d worked after school at the local supermarket since I was fifteen $2.38 an hour.
I didn’t understand what credit was. I didn’t totally get the full ramifications of borrowing something until I had a stereo repossessed when I was twenty. By an agency with a valid business model. At the end of the day, it had something to sell on when I defaulted.

By: cha

cha — Sun, 13 Jan 2013 01:47:58 +0000

Don’t let the facts get in the way of the dementia BB old dear,

Labour introduced tuition fees in 1989 and the student loan scheme was brought in by national in 1992.

By: BeaB

BeaB — Sun, 13 Jan 2013 00:41:57 +0000

Monique. I think it was Phil Goff who intoduced student loans. Yet another way for Labour to spend our money for us.

By: Monique Watson

Monique Watson — Sat, 12 Jan 2013 22:15:31 +0000

Agree with privatizing tertiary education. Then give everyone one free degree. Free education with loans only for living expenses and maybe means tested on their parents income. Abolish student dole.

Student Loan for education are the biggest load of wank that the right wing has ever dreamed up. No wonder it’s all turning to custard. It’s common sense innit? If you loan money for a non tangible asset then of course you’re not going to get a good level of debt repayment. Whoop de fuckin woo. It’s no surprise that a greater number of borrowers are going to default.

So don’t go all boo hoo when there is nothing to repossess. It’s a failed business model. That is all. It’s more than obvious that drastic changes to the education system need to be made. Pity no one has the cojones to do so.

To the “hang ‘em high”, crew, You don’t get net economic benefit to New Zealand with that attitude. Make it easier for borrowers to repay with zero interest rates on overseas borrowers. Getting debt collectors onto individuals makes them take up citizenship in other less punitive countries.

By: AG

AG — Sat, 12 Jan 2013 19:07:49 +0000

@Zapper,

Yes, I can read AG. $9500 is not quite $23000 is it?

True. The article is wrong. Did I ever say different?

But then again, $9500 is not quite the $6000 that DPF says would have been required by an overseas resident earning $75,000. So he is wrong, too.

Point being, you shouldn’t treat as gospel anyone’s confident assertion of “the truth”. And that is my only point.

By: lilman

lilman — Sat, 12 Jan 2013 17:12:47 +0000

My money,borrowed from me in an agreement between the Govt and the borrower.
Dont bitch and bleat because you have to pay it back.
Why should you get a free loan ?
Oldest son away to Otago this year,has savings of $22000 dollars saved in 13 months ,worked bloody hard and not because it was a hand out but got off his arse cleaned toilets ,mowed lawns ,worked on farms,helped at rest home.
He gets nothing from me and has already lined up 2 jobs in Otago that he will be doing to suppliment income whilst down there.

By: Zapper

Zapper — Sat, 12 Jan 2013 11:16:21 +0000

I can see how you’ve made it add up to $23,000 though. Unfortunately, your calculation is not even close to what happens in real life.

By: Zapper

Zapper — Sat, 12 Jan 2013 11:14:33 +0000

Talking to me like I’m dumb while claiming 1/15 of $70,000 is $10,500. Heh.

Get back in your box burt.

By: burt

burt — Sat, 12 Jan 2013 10:54:14 +0000

Ooopps – that was 15% … where is the edit function….

Anyway, $4,666 plus the interst on that plus the interest on the remaining $65,334 …

By: burt

burt — Sat, 12 Jan 2013 10:52:28 +0000

Zapper

One-fifteenth of 70K is less than 5K. Certainly not the 23K he claimed.

Thanks AG, you’ve proven the lies taken as fact by the reporter.

One moment caller;

You need to pay 1/15 of $70,000 is $10,500 – now add the interest to that AND the interest on the $59,500 as well…. What was that interest rate again ???? Just might add up to $23,000 – perhaps ????

By: Zapper

Zapper — Sat, 12 Jan 2013 10:29:07 +0000

I need dime to answer that question

By: Zapper

Zapper — Sat, 12 Jan 2013 10:25:34 +0000

Of course, academics don’t give a fuck. They would rather more people spent on ridiculous degrees, or a C degree. Keep them in a job, funded by us. And while they’re in that job, they criticise the very people who pay their salary.

How should we define such people?

By: Zapper

Zapper — Sat, 12 Jan 2013 10:02:51 +0000

Yes, I can read AG. $9500 is not quite $23000 is it?

By: Chris2

Chris2 — Sat, 12 Jan 2013 09:55:01 +0000

The surest way to get student loans to be paid by those living overseas is to warn them that their NZ passport will not be renewed – they are only valid for 5 years now so time will be on the Government’s side. No valid passport and the only place they can live is back here in NZ.

That would wipe the smirk of their faces.

The same principle should apply to all unpaid fines (not just the big ones). Stop the defaulters at the airport, get them to pay off their fine with the credit card they will be carrying.

By: AG

AG — Sat, 12 Jan 2013 09:28:53 +0000

Should read:

“So that’s $4900 in interest, and $4666 in capital, totaling $9500.”

By: AG

AG — Sat, 12 Jan 2013 09:18:06 +0000

@Zapper,

Each year, the borrower was required to pay one-fifteenth of the outstanding principal and all the interest accruing on the loan.

For the 2000 – 2001 financial year, the rate of interest charged on student loans was 7% (http://www.beehive.govt.nz/node/6880). So that’s $4900 in interest, and $4,666 in interest, totaling $9,500. Less than the figures quoted in the Herald, but more than DPF cites.

By: Zapper

Zapper — Sat, 12 Jan 2013 08:41:40 +0000

One-fifteenth of 70K is less than 5K. Certainly not the 23K he claimed.

Thanks AG, you’ve proven the lies taken as fact by the reporter.

By: AG

AG — Sat, 12 Jan 2013 08:36:28 +0000

Took a bit of digging (three google searches, rather than the usual one), but here we go:

Until 1 April 2007, borrowers who went overseas before their loans were repaid were expected to work towards repayment of the full loan balance within 15 years. Each year, the borrower was required to pay one-fifteenth of the outstanding principal and all the interest accruing on the loan. Many borrowers – especially those with larger loans and those who had low earnings while overseas – found repayments very difficult and many ended up in arrears. (1)

I guess the take-home message is, readers should be very careful about taking assertions as facts.

(1) http://www.educationcounts.govt.nz/__data/assets/pdf_file/0003/17238/Chapter-3-Student-Loan-Scheme-Annual-Report-2007.pdf