The HoS reports:
University Students Association president Pete Hodkinson said graduates with loans would spend less and businesses would suffer.
The changes to loan repayment rates mean someone earning $1000 a week will pay an extra $658 a year. “This, for most people, will mean things like not going out to dinner (as often),” Hodkinson said.
Oh dear, the grind of poverty. Someone on $52,000 won’t be able to go out to dinner as often.
“If 200,000 people are now not spending money in an industry like hospitality … think about the economic impacts.”
Oh Good God – save us from wannabee economists. They are repaying student loan debt. This means the Government is not borrowing so much money. Debt fueled consumption is not sustainable.
People choosing to pay back loans quickly will no longer be rewarded.
Currently, people making voluntary payments of $500 or more a tax year on top of obligatory repayments earn a 10 per cent bonus, credited to their loan account.
Auckland University Students Association president Daniel Haines said scrapping the bonus was “unfair and harmful” to students.
This is ironic. Do you know why? When National announced this voluntary repayment bonus policy, it was attacked by NZUSA. They said:
“We question why National has created such a narrow policy that will merely reward the rich and leave everyone else to struggle”
So let’s be very clear. NZUSA attacked the policy when National announced it, and now attack National for scrapping it.
This confirms my perception that most of the time NZUSA is not about actually advocating for the welfare of students, but promoting Labour and advancing the political careers of wanabee Labour MPs.