need to pass to get a student loan now?

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › need to pass to get a student loan now?

markh14

95 posts

Master Geek
Inactive user

#65097 29-Jul-2010 14:39

Students have to pass half their courses now to keep their student loan

http://www.stuff.co.nz/national/politics/3968082/National-eyes-offshore-student-debt

So how does this work? A person starts their course and gets a student loan and during their course they fail under half of their course so the government will stop loaning them money?

bcourtney

652 posts

Ultimate Geek
+1 received by user: 27

Trusted

#358448 29-Jul-2010 15:10

I think that's pretty self explanatory, is it not? If you fail more than half of your papers then you lose your approval for future loan drawdowns.

Pretty simple

robbyp

1199 posts

Uber Geek
+1 received by user: 8

#358477 29-Jul-2010 15:51

markh14: Students have to pass half their courses now to keep their student loan

http://www.stuff.co.nz/national/politics/3968082/National-eyes-offshore-student-debt

So how does this work? A person starts their course and gets a student loan and during their course they fail under half of their course so the government will stop loaning them money?

I think is a great idea. The only thing they should be aware of is if people fail due to illness or other reasons outside their control, they shouldn't be penailised. The tax payer shouldn't have to pay for these students to simply socialise at uni, which is what many of them do.

I can see our unis becoming more and more just institutions of foriegn students, who pay high fees, and it does add money into our economy. The downside of this is that NZers are missing out. Many NZ students study at uni, paid for by the tax payer, then they graduate and move overseas where they earn a lot more, and start a family, and are highly unlikely to come back. I think therefore there should be some form of bonding, where people are forced to stay in NZ for a minimum period of time and working in the field they studied for, or have to payback the full cost of their education. We need to get tough on this.

wellygary

8810 posts

Uber Geek
+1 received by user: 5287

#358480 29-Jul-2010 15:56

markh14: Students have to pass half their courses now to keep their student loan

http://www.stuff.co.nz/national/politics/3968082/National-eyes-offshore-student-debt

So how does this work? A person starts their course and gets a student loan and during their course they fail under half of their course so the government will stop loaning them money?

Fairly sure it has been this way for student allowances for a long time

robbyp

1199 posts

Uber Geek
+1 received by user: 8

#358496 29-Jul-2010 16:15

wellygary:
markh14: Students have to pass half their courses now to keep their student loan

http://www.stuff.co.nz/national/politics/3968082/National-eyes-offshore-student-debt

So how does this work? A person starts their course and gets a student loan and during their course they fail under half of their course so the government will stop loaning them money?

Fairly sure it has been this way for student allowances for a long time

Loans and allowances are different. Allowances you don't have to pay back, and are fully funded by the tax payer, so it is perfectly fair that that should be the case. Loans you have to pay back. I would like to see interest reinstated back on student loans too, as there is no incentive to pay back your loan early, and it is costing taxpayers a lot.

manta

249 posts

Master Geek
Inactive user

#358506 29-Jul-2010 16:23

robbyp:

Loans and allowances are different. Allowances you don't have to pay back, and are fully funded by the tax payer, so it is perfectly fair that that should be the case. Loans you have to pay back. I would like to see interest reinstated back on student loans too, as there is no incentive to pay back your loan early, and it is costing taxpayers a lot.

Need to be careful here; not having decent graduates will cost the taxpayer a hell of a lot more.

They should charge a higher rate of interest if the student has passed fewer than half their courses, and reduce the interest rate again if they once more achieve more than half.

robbyp

1199 posts

Uber Geek
+1 received by user: 8

#358552 29-Jul-2010 16:59

manta:
robbyp:

Loans and allowances are different. Allowances you don't have to pay back, and are fully funded by the tax payer, so it is perfectly fair that that should be the case. Loans you have to pay back. I would like to see interest reinstated back on student loans too, as there is no incentive to pay back your loan early, and it is costing taxpayers a lot.

Need to be careful here; not having decent graduates will cost the taxpayer a hell of a lot more.

When was the last time you went to the doctor or dentist? Many are now from overseas, like south africa or india, and they weren't educated here. It is probably cheaper to import people with the skills, than to train them in NZ. Other countries are benefiting from NZs education system, rather than NZ.

I am all for free education for dentists and doctors, as long as they are bonded here in NZ, so that we actually benefit from our investment in them, as tax payers. If they want to work overseas for more money they can, but they or their overseas employee would have to pay them out of that bond. I believe they actually do this sort of thing with the NZ navy, where you have to pay to get out of it, as you get free training.

Dyson

Shop now for Dyson appliances (affiliate link).

Geese

1028 posts

Uber Geek
+1 received by user: 53
Inactive user

#358940 29-Jul-2010 22:06

So this talk about lifetime limits on student loans, is that just talk, or is that actually in place now? If it is, when does it start and whats the limit?

kingjj

1730 posts

Uber Geek
+1 received by user: 450

ID Verified

Trusted

#359069 29-Jul-2010 23:37

robbyp:
wellygary:
markh14: Students have to pass half their courses now to keep their student loan

http://www.stuff.co.nz/national/politics/3968082/National-eyes-offshore-student-debt

So how does this work? A person starts their course and gets a student loan and during their course they fail under half of their course so the government will stop loaning them money?

Fairly sure it has been this way for student allowances for a long time

Loans and allowances are different. Allowances you don't have to pay back, and are fully funded by the tax payer, so it is perfectly fair that that should be the case. Loans you have to pay back. I would like to see interest reinstated back on student loans too, as there is no incentive to pay back your loan early, and it is costing taxpayers a lot.

Being indebted to this fine nation myself in the form of a student loan I'm naturally against this statement

.

I am however all for restrictions on student loans especially with limiting failures access. I've got a friend whose in his sixth year of study and is yet to achieve any sort of degree, he constantly fails more than half of his courses yet when the Uni kicks him out of one school of study he just jumps to another.

I would love to pay my loan off quickly, unfortunately its just not possible at the moment with what I earn. When I started my study there were lots of careers that my field could have lead to. When the "recession" hit a lot of educated entry level jobs for people such as myself disappeared. Its really not a situation any student wants to be in, adding interest on top of this in the current environment would just rub salt into the wound.

robbyp

1199 posts

Uber Geek
+1 received by user: 8

#359080 29-Jul-2010 23:56

kingjj:
robbyp:
wellygary:
markh14: Students have to pass half their courses now to keep their student loan

http://www.stuff.co.nz/national/politics/3968082/National-eyes-offshore-student-debt

So how does this work? A person starts their course and gets a student loan and during their course they fail under half of their course so the government will stop loaning them money?

Fairly sure it has been this way for student allowances for a long time

Loans and allowances are different. Allowances you don't have to pay back, and are fully funded by the tax payer, so it is perfectly fair that that should be the case. Loans you have to pay back. I would like to see interest reinstated back on student loans too, as there is no incentive to pay back your loan early, and it is costing taxpayers a lot.

Being indebted to this fine nation myself in the form of a student loan I'm naturally against this statement .

I am however all for restrictions on student loans especially with limiting failures access. I've got a friend whose in his sixth year of study and is yet to achieve any sort of degree, he constantly fails more than half of his courses yet when the Uni kicks him out of one school of study he just jumps to another.

I would love to pay my loan off quickly, unfortunately its just not possible at the moment with what I earn. When I started my study there were lots of careers that my field could have lead to. When the "recession" hit a lot of educated entry level jobs for people such as myself disappeared. Its really not a situation any student wants to be in, adding interest on top of this in the current environment would just rub salt into the wound.

National will likely scrap it next year if they get back in , and labour will probably use it as another election bribe to get back in. But the fact is the country can't afford it. If I was you, I would factor in that it will be added back on eventually. It however shouldn't really affect you in terms of how much you are paying back out of your wages each week, it will just mean it will take you longer to pay it back, as the amount will grow.

kingjj

1730 posts

Uber Geek
+1 received by user: 450

ID Verified

Trusted

#359097 30-Jul-2010 00:12

robbyp:
National will likely scrap it next year if they get back in , and labour will probably use it as another election bribe to get back in. But the fact is the country can't afford it. If I was you, I would factor in that it will be added back on eventually. It however shouldn't really affect you in terms of how much you are paying back out of your wages each week, it will just mean it will take you longer to pay it back, as the amount will grow.

For my sake and the 88 thousand other borrowers I hope your wrong

. Key has all but come out in recent days and said that they are not considering retracting it yet and with how they're polling (good but not great) it wouldn't be great politics to announce its retraction any time soon. How about a compromise, keep it interest free but automatically take any tax credits/refunds to pay towards it? That oughta bring in a few dollars.

By all means charge those that leave the country interest, leave the rest of us loyal Kiwis alone