6. AARON GILMORE (National) Link to this
to the Minister of Education
What steps has the Government taken to help individuals pay off their student loans quicker?
Hon ANNE TOLLEY (Minister of Education) Link to this
Yesterday the Government announced that its voluntary repayment bonus would come into effect on 1 April this year. Under this policy, student loan holders who make voluntary repayments totalling $500 or more across the year will be eligible for a 10 percent bonus. That means that if someone makes voluntary repayments of $1,000 across the year, the Government will deduct $1,100 from his or her loan balance.
The scheme announced yesterday is a significantly expanded version of the one announced before the election. First of all, voluntary repayments are eligible for the bonus, regardless of how long after graduation the payments are made. Secondly, student loan holders who reside overseas and are fully compliant with their repayment obligations will also be eligible for the voluntary bonus. Finally, the bonus will not require the minimum qualifying payment of $500 to be made in a lump sum; instead, it can be made across the course of the year.
Hon Maryan Street Link to this
Does the Minister agree that it is likely to be people on higher incomes who are able to make additional student loan repayments, and that these are the same people who will benefit most from next week’s tax cuts; if so, can she explain why this Government is intent on giving cash to those on higher incomes, rather than to those on low to moderate incomes who need it more?