Salient. Official Newspaper of the Victoria University Students' Association. Vol 41 No. 9. April 24 1978

Student Loans

Student Loans

When the question of student loans was raised, Brill again admitted his lack of knowledge on the subject. In a document called "Planning Perspectives for New Zealand 1978—83", the NZ Planning Council makes strong recommendations for a system of student loans to be introduced in the near future. Primarily the reason is economic — it would relieve the government of the responsibility of $21 million that they presently pay out to students. It would in effect mean, as Barry Brill put it, "a living loan" or "allowing students to have loans."

It sounds so simple. Students would come to university and live comfortably for three or four years and then when they've made their money after graduation, they'd simply pay all the money back. All right in theory, but what if students can't get a job after graduation, or a well enough paid job to enable them to pay back the money (probably $4—5,000)? Chances are that they'll be paying off the loan for years. And what if they want to go overseas after completing their degree?

In practice, a loans scheme would be even more unequitable than the present system. Rich students could simply reinvest the money, taking advantage of the low interest rates.