Student loan interest rate stays at 7 per cent

The student loan interest rate will remain at 7 per cent for the year beginning April 1, the Government said today.

Associate Revenue Minister David Cunliffe said all full-time, full-year and part-time, low income students would continue to qualify for a full interest write-off.

Tertiary Education Minister Steve Maharey said most student loan borrowers qualified for some kind of interest write-off and did not actually face the total interest rate of 7 per cent.

In the tax year ended March 2003, records show that 70 per cent of students received some kind of write-off.

- NZPA