Tuesday, July 26, 2005

You Got Served

Labour's Student Loan policy is certainly impressive, especially when compared to National's polished turd of a policy.

The predictable response from National is that this is an "election-year bribe" unlike say, an unspecified personal tax-cut, and that it is unfair to those who have already paid off their loans. Sure, that is inequitable, but it's also unfair that those who enjoyed a virtually-free tertiary education in the 80s have no loan to pay. That argument is similar to claiming that a store is not allowed to discount a product after you agreed to pay twice the price for the exact same product five years ago. There are also concerns that students with "rich parents" will take out a loan to pay their university fees instead of using the funds which they have saved for that very purpose. Perhaps the "rich parents" will instead use these funds to "create and drive economic growth" like National's "tax cuts" are meant to.

The other argument National is spinning that it will "encourage increased student borrowing", that's quite likely, but that will be significantly counter-balanced by the pace at which the loans will be paid off. And quite frankly, the removal of interest charged on student loans is a removal of a significant barrier to accessing teritary education, for most people this cannot be a bad thing.

At the very least it's an attempt to address the student loan problem instead of meaningless window dressing we've had in the past.

The election is so on now, girlfriend.


Jordan said...

I'm smacked by the size of it, and really pleased. :)

James Bond said...

expect the debt to sky rocket