National vows to reduce student loan repayment rate if re-elected
New Zealand's National Party has pledged to reduce student loan repayment rates from 12% to 10% by 2027 if re-elected. The policy also includes stricter penalties for overseas-based borrowers who fail to meet their repayment obligations.
Why it matters
This policy aims to provide financial relief to local graduates while addressing the high rate of default among those living abroad.
The National Party is promising to reduce the compulsory student loan repayment rate if re-elected, while cracking down on overseas-based borrowers.
It said it would reduce the repayment rate from 12 percent to 10 percent from April 2027.
The party's finance spokesperson Nicola Willis said compulsory student loan repayments were paid at 12 cents on every dollar earned above $24,128.
"It is often one of the biggest weekly expenses for a young graduate," she said.
''Reducing this to 10 cents means an accountant starting out in their career and earning $75,000 per year would keep an extra $39 a fortnight, or around $1000 a year.''
National would also introduce new financial penalties for borrowers who left the country before paying back their student loan.
That included adding to student loan interest, restricting KiwiSaver withdrawals and making it easier for police to issue arrest warrants for "serious, sustained loan defaults".
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