Labour reveals policy to forgive student loan debt as party kicks off election campaign
The New Zealand Labour Party has announced a policy to forgive 10% of student loan debt for eligible graduates as part of their election campaign. The proposal aims to provide financial relief to young people, though it faces criticism regarding its economic impact.
Why it matters
Student debt relief is a significant political issue that impacts national budgets and the financial stability of younger voters.
Labour is promising to forgive 10% of student loan debt, a policy costing an estimated $583 million over the next four years.
It comes as Labour leader Chris Hipkins slams National’s campaign suggesting a Labour-led coalition would introduce several new taxes, calling the claims “bull****”.
Labour unveiled the policy at its campaign launch at the Due Drop Events Centre in South Auckland, where Hipkins anchored his speech on the impact of rising costs and declared he’d never felt so strongly about National being a “risk to the future of this country”.
The policy pledged to cut 10% of student loan debt for anyone who had finished studying, hadn’t benefited from the Fees Free programme and was still paying off their loan. Those owing $2000 or less would see their debt wiped completely.
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