Labour promises to write off 10% of some student loan balances

Labour is promising to write off 10 percent of eligible student loan balances, as it launches its election campaign.

The policy would apply to current and future graduates who are New Zealand-based for tax purposes, did not benefit from the fees free scheme and still had a loan to pay back.

Loans with $2000 or less remaining would be written off entirely.

The policy was expected to cost $583.4 million over five years, the bulk of it in the first year when historical fees would be forgiven on 1 April 2027.

It would only apply to students who had completed their studies.

Announcing the policy at the party's campaign launch at the Due Drop centre in Manukau on Sunday, leader Chris Hipkins said it will help open doors and encourage talented people to stay in the country.