Student loan rate set

The student loan interest rate for the 2006-2007 tax year has been set at 6.9 per cent, down from 7 per cent, Tertiary Education Minister Michael Cullen and Revenue Minister Peter Dunne said yesterday.

The ministers said in a statement that most borrowers living in New Zealand would have interest-free student loans from April 1.

"Borrowers who qualify for interest-free loans will continue to be charged interest during the tax year, but their interest will be written off after March 31, 2007," they said.