The Cannabis Party - Student loan policy
Currently in New Zealand:
- Student loan debt is a large burden on many young New Zealanders.
- Many graduates look for work overseas for higher wages or to avoid repayments.
- The burden of student debt repayments reduces spending in productive areas of the economy.
- Student debt is leading to increased rates of bankruptcy.
The Cannabis Party's new policy is to:
Reduce student debt levels by:
- incentivising graduates to live and work in New Zealand.
- structurally re-adjusting the student debt levels of graduates living and working in New Zealand.
requiring IRD to cancel 10% of the student debt for each debtor who lives, works and makes student loan repayments in New Zealand, at the end of each financial year; and
- the IRD and Government write-off any cancelled debts from their accounts; and
- ensure cancelled debt is forgiven rather than paid for by alternative means.
The aims of this a policy are:
- That graduates who were already making loan repayments will be able pay off their loan faster and will have more disposable income to spend in the real economy.
- To benefit new students as well as graduates.
- That the debt restructuring programme is used to incentivise debtors to make repayments who otherwise would not have made repayments.
- To be cost neutral to the taxpayer in the long-term.
Policy ratified by the Cannabis Party executive – 12/04/2016