New student loan policy released

 

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:

  1. incentivising graduates to live and work in New Zealand.
  2. structurally re-adjusting the student debt levels of graduates living and working in New Zealand.
  3. 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
    1. the IRD and Government write-off any cancelled debts from their accounts; and
    2. 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