Tertiary Education Minister Steven Joyce yesterday announced a raft of changes to student loan and allowance schemes ahead of the May 24 Budget.
The changes mean the more than 500,000 people with student loans will have to pay them off more quickly, with the repayment rate increased from 10% to 12% for earnings over $19,084.
Students will not be able to receive an allowance after four years of study and a four-year freeze on the parental income threshold for eligibility to student allowances will be introduced.
Mr Joyce said the Government was reconsidering a loan repayment incentive scheme offering a 10% discount on voluntary repayments.
Otago Polytechnic Students' Association president Rebecca Hohaia said the changes were short-sighted.
"The Government should be thinking of students as an investment. Without students studying ... will we have people that are qualified to run our businesses and work in our hospitals?
" Otago University Students' Association president Logan Edgar said the changes could put some people off study, especially those with families.
The changes to the student allowance could also put people off doing postgraduate degrees, which required more than four years' study.
He hoped getting rid of interest-free loans would not be the Government's next move.
Otago University commerce student Pippa Thomas thought the changes were "probably necessary".
Law student Emily Costa was against limiting the student allowance to four years. Her degree took five.
Labour Party tertiary education spokesman Grant Robertson said increasing the repayment rate would result in fewer people in tertiary education and encourage people to move to Australia.
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