I have to say that when I saw that Steven Joyce had been appointed Tertiary Education Minister I thought it was probably not just about Anne Tolley struggling to handle her responsibilities. There were any number of other Ministers who could have taken the Tertiary portfolio, but it was handed to the Nats number one strategist and the PMs close confidant. This means that National want to “do” something in the tertiary portfolio.
Good. Tertiary Education is a vital area for our future, and it needs to develop and change in order to provide the graduates and the research that is so vital to our economy and society. But what is it exactly that National wants to do?
Well, a clue this morning from John Key on Sunrise. He says there are ‘economic’ issues in the portfolio including
whether the student loan policy works and whether there can be improvements made.
Now Steven Joyce is a clever political operator, and he knows how popular the interest free student loan policy is, but it is true that the Nats are worried about the liabilities that the scheme gives them. Also remember that National has never liked interest free student loans. John Key said they were “irresponsible” and he would oppose the policy “with every bone in his body”.
We can’t ask written parliamentary questions for another week. So some journalist out there might like to ask Mr Key or Mr Joyce just what changes are in store for student loans?
Interest set at the rate of inflation?
If I had to guess…
I would say that the re-introduction of interest on student loans is an aim of the National/Act/Maori party government.
I would also speculate that a decline in funding for tertiary institutions across the board will be considered by Joyce. This will of course mean that students will need more loans to pay for each individual course, which will be compounded by the interest.
This will drive more graduated student to find work overseas and default on their student loans, rather than stay in New Zealand, where they would lose 10% of their pay packets for decades.
Just a guess.
Could be some further fiddling with student allowance thresholds as a little bit of appeasement.
…as well as whatever major change happens.
Reintroduce free education to all NZ students and charge for overseas students and those who are not at least NZ residents or NZ born.
As nothing is free in life, then tax’s will need to cover education as it once did.
what cost is the burden of administering loans, collecting monies and the debit and interest attached to the student loan scheme.
To me it would give all New Zealanders a better and more cost effective education.
nothing is free in life
… which happens to be a good argument for the reintroduction of interest on student loans.
Overseas students pay a lot of money, that’s why we let them in!
Something overlooked here is the opening up of student loans to private providers.
I wouldnt rule out something along the lines of that.
BTW, I think education should be free as well, but not under the current system. The current system is designed for user-pays. The whole system needs a major overhaul (including the way in which qualifications are structured and delivered) before we come to the question of free education.
Perhaps spending a greater percentage at the early stages and not like what is currently the practice of giving money at the end of an education journey. ALL because tertiary students vote do they get such attention. How about spending on the foundations setup at the beginning are far more beneficial for all of us and the country. Not that I support Nat Stds but I do follow the 2 R’s and one A.
Perhaps My Joyce will subsidise local councils to provide FREE library use, as I recall that Alan Duff was promoting a reading scheme to assist. And when I say free, I refer to no charges totake books out, not the Political idea of free, meaning part charges!!
Could be interest free only whilst studying. Turns out the interest free extends post study.
Every accountancy student at Otago told in first year to borrow the maximum and invest it in high interest accounts giving a tidy profit after 5 years all all the expense of ordinary Kiwis. Are these the bludgers that Phil wants to stop?
Looks like interest-free loans are staying, according to our Great and Glorious PM.
As I said before, I’m picking an opening up of the student loans scheme to the private sector – like in Australia and the USA.
Or there could be stuff like the following:
1) Limits on amount students can burrow
2) Allowing KiwiSaver to be used for uni fees
3) A saving scheme for tertiary education (Labour proposed this back in 2001-02, but it was killed)
Etc.
Virgin funding?…
Saw TEU asking on their Facebook page whether a student auctioning their virginity was a sign of decreasing funding, but the prominence of the story is more of a sign of sensationalist reporting (me included – great excuse for a silly headline). …
A little while ago Marty of The Standard did the maths on the 10% bonus repayment scheme the Government introduced and found that it makes no sense to do it unless there was interest. The interest-free policy has always attracted a lot of vitriol from the right, as stated earlier with every bone in Key’s body etc, so my guess is interest on the loans either through the government a la the case before 2005 or privatisation.
In 1999 I led a petition signed by about half of University of Canterbury students referred to the social services select committee calling for only the CPI to be assessed on student loans each year.
I wonder if half would still consider that fair enough to take the time ro sign a petition?
I know this is a minority position but I think it’s worth another look to see what people view as fair.
[...] those who have not been following the saga. John Key appoints Steven Joyce as Tertiary Minister because there are ‘economic’ issues to deal with in the portfolio [...]