To my disbelief Traveor Mallard is trying to argue that having no interest on loans will not significantly affect the proportions who take them up. This is so ridicolous I do not know how he can say it with a straight face. Almost every known model of economics places huge reliance on the rate of interest as influencing behaviour with regards to investment.
I am hearing rumours that Michael Cullen fought totally against this policy, because he knows it is going to blow borrowing out. The fact it has not been checked by a single government agency suggests the decision making on this was incredibly rushed.
Investing more money into tertiary education is not a bad thing, but this policy is arguably the very worst way to go about it. Labour Party member, self-described socialist and former AUSA Office Stef criticises the policy as ir-responsible, and she is right.
It has also been criticised by senior academics as bad policy.