Student loan rate held

The student loan scheme headline interest rate - the highest borrowers can pay - will be held at 7 per cent for the third straight year.

Most borrowers qualified for full or partial interest write-offs and would not face the headline rate, said Revenue Minister Michael Cullen and Tertiary Education Minister Steve Maharey.

The average interest rate would be about 3 per cent, they said.

The Government changed the loan scheme last year, wiping the interest charged to full-time, full-year and low-income students.

Total student debt has reached $5 billion, according to University Students' Association figures released this month..