Government proposals to restrict access to student loans and set repayment deadlines are demoralising, says the New Zealand University Students' Association.
It has been revealed that Education Minister Steve Maharey is considering restrictions on the amount of money students can borrow as one way of curbing burgeoning student loan debt.
With student debt hitting $5 billion, other measures are also being looked at, including allowing students to pay a contribution to their education after they have graduated, and setting deadlines for loan repayment.
Students' association co-president Andrew Campbell said it was "demoralising for students to hear of yet another plan to make the current problems worse".
"Private savings schemes, restricting access to loans or harsher repayment conditions are not the answer to the student debt crisis," said Mr Campbell.
"Reducing fees and increasing access to allowances is the only way forward."
He said loans were vital for students who did not qualify for allowances because their parents were "too rich" under means-testing, the income threshold of which had not been adjusted for more than 10 years.
A spokesman for Mr Maharey said on Sunday that the Government was considering capping the amount students could borrow, but wanted to see the money spent on loans targeted in other ways.
He said there were two schools of thought on this.
* To provide, over time, improved access to allowances and lowered fees or "bands" of fees.
* To consider a graduate contribution scheme, which would make education costs free at the time of studying but have the student pay a proportion back after graduating.
- NZPA
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