News | Education
21 Feb 2018 16:13
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Education

    Report calls for interest on student loans

    The Productivity Commission's final report on tertiary education has produced a raft of recommendations, including interest on new student loans and ending UE.


    New students should pay interest on students loans, the Productivity Commission says after a review of the tertiary education sector.

    But the government and Labour say it won't happen, while the Green Party has called that recommendation and others a "radical ideological experiment" on a whole generation of students.

    The New Models of Tertiary Education report follows a year-long inquiry into the sector and also proposes abolishing University Entrance and improving careers education for young people.

    As well as reintroducing interest to student loans, the reforms also included a proposal that the repayment threshold be raised.

    Failing that the commission wants to see balances adjusted for inflation based on the consumer price index.

    Labour leader Andrew Little said he didn't think much of the interest proposal at all.

    "You've got a generation going through university now who face the very real prospect they'll never be able to own their own home so why would we add to the impediments they have already for going down that path by putting interest back on student loans," he said.

    "It just doesn't make sense in this day and age and we won't be doing it."

    Prime Minister Bill English said interest was off the agenda.

    After "years of arguments" the student loan scheme was settled and "we don't want to change it", he said.

    Suggestions universities be able to set their own entry requirements receive a warmer reception.

    Mr English said essentially that was the case already, with universities able to make exceptions for people without UE, and impose additional conditions.

    The 527-page final report, released on Tuesday, made 49 recommendations for reform including improving regulatory settings, reforming how the government purchases tertiary education and ensuring "system architecture" produced more innovative performances.

    In its report, the commission says the present system doesn't cater adequately for diverse students or encourage new models to emerge to meet evolving needs and opportunities.

    It says access is rationed in a way that excludes some people from participating at all.

    "The system is characterised by a high degree of central control: over time, government has responded to fiscal pressure, political risks and quality concerns with increasingly prescriptive funding rules and regulatory requirements," it said.

    "Stability has come before innovation and the interests of students."

    The commission said its recommendations aimed to free up the system, so new models could meet the needs of a wider variety of students.

    PRODUCTIVITY COMMISSION RECOMMENDATIONS

    * Charge interest on new student loan repayments, and lift the repayment threshold

    * As an alternative to interest, adjust balances for inflation based on CPI

    * Abolishing University Entrance

    * Better quality control and self-accreditation for strong performers

    * Making it easier for students to transfer between courses

    * Better careers education for young people

    * Enabling tertiary institutions to own and control their assets

    * Making it easier for new providers to enter the system

    * Facilitating more and faster innovation by tertiary education providers.

    © 2018 NZN, NZCity


     Other Education News
     20 Feb: Florida shooting: Students stage 'lie-in' to pressure White House on gun control
     19 Feb: American history suggests Centennials could turn the tide on the NRA
     19 Feb: Forensic artists give faces to the faceless
     18 Feb: Spate of crimes in Hastings highlighted
     18 Feb: Hidden painting found behind Pablo Picasso's painting The Crouching Beggar
     17 Feb: Florida shooting the 'new norm' as US state reels from latest gun violence
     17 Feb: Florida school shooting victims were aged as young as 14 and include teachers who died protecting students
     Top Stories

    RUGBY RUGBY
    Seasoned Highlanders team named for opener More...


    BUSINESS BUSINESS
    Fletcher Building shares hit 5-year low More...



     Today's News

    Rugby League:
    Beattie to meet with clubs over reform 16:05

    Law and Order:
    China cracks down on funeral strippers hired to entertain mourners, attract larger crowds 16:05

    Entertainment:
    Drew Barrymore insists "nothing has changed" since she got divorced 16:05

    Law and Order:
    Alfie Evans: UK parents lose legal battle to keep seriously ill toddler on life support 15:55

    Business:
    Fletcher Building shares hit 5-year low 15:35

    Entertainment:
    Chrissy Teigen will give birth to her second child in June 15:35

    Christchurch:
    CTV site transformed into 'peaceful place' 15:25

    Business:
    A2 shares jump 25pc on Fonterra deal 15:05

    Entertainment:
    Jordin Sparks held a "beautiful" baby shower for her family and friends on Saturday (17.02.18) 15:05

    Motoring:
    Number of South Island roads re-open 14:55


     News Search






    Power Search


    © 2018 New Zealand City Ltd