307,000 graduates worse off under Labour
The young New Zealanders most at risk of moving overseas won’t even benefit from Labour’s expensive student loan policy, National’s Campaign Chair Simeon Brown says.
“Labour says its student loan policy is about stopping young Kiwis from moving overseas, but its expensive handout doesn’t even support many of the young people most likely to be considering a move.
“Who is most likely to be weighing up a move abroad? Young New Zealanders just starting out in their careers.
“But many of those young Kiwis have already benefited from Fees Free, which means they won’t even be eligible for Labour’s student loan write-off.
“The Tertiary Education Commission estimates around 307,000 students took up Fees Free between 2018 and 2025. Labour’s policy leaves them behind.
“These are younger New Zealanders getting started in their careers and trying to get ahead. Labour says its policy is designed to keep young people in New Zealand, yet hundreds of thousands of them benefit at all. Worse still, they’ll be expected to help pay for it.
“That means younger graduates who received Fees Free, alongside tradies, farmers and truck drivers who never went to university, will help foot the bill so people who studied before 2018, including lawyers and other high earners who are further into their careers, can have their student loans cut.
“It makes no sense. If Labour genuinely believes handing out taxpayer money for student loans will stop young people moving overseas, why has it designed a policy that excludes hundreds of thousands of younger students and graduates?
“National has a better plan to help students and graduates get ahead. We will reduce the compulsory student loan repayment rate from 12 to 10 cents in every dollar earned over the threshold, meaning students and graduates with student loans will keep more of what they earn while continuing to pay back what they borrowed.
“Under Labour, 307,000 younger Kiwis miss out and still help foot the bill. Under National, borrowers keep more of their own money, and New Zealanders won’t be hit with new taxes to pay for it.
“That’s the choice this election. National will back young Kiwis to get ahead and build their future here. The Labour-Greens-Te Pāti Māori-Opportunity coalition is promising billions more in spending and at least nine new taxes to pay for it.”
