Friday, January 25, 2008

Student loans won't cost very much. Yeah, right.

When  the student loan election bribe was uncorked last election, it was predicted by everyone from bankers to political opponents to Cactus Kate that it was going to cost a lot -- up to $1billion said Westpac's Brendan O'Donovan, three times what Labour's electioneers were saying -- and "would ... cause an explosion in student debt."

No, no, no said finger-wagging Labour spin doctors and Green cheerleaders at the time, carefully keeping their their eyes on the polls, their fingers crossed and their calculations to themselves.  "Extremist and scaremongering" said a cynically vote-mongering Mallard about O'Donovan's now proven predictions.

Three years later, guess who was right?  "Research released today by TNS Conversa revealed average student debt had risen by 54 per cent since 2004" -- and let's face it, there can't be one person with a working brain who's truly surprised -- and NZUSA president Paul Falloon (who apparently wasn't awake three years ago) blames banks for "seizing the chance to entice students as customers."

Apparently Mr Falloon is in need of that working brain.  It isn't banks who are "seizing the chance" to entice students as customers -- it was the Clark Government's election bribe which sought to entice short-sighted students as voters (and don't forget that Labour-Lite now endorse the bribe).

Labour liars weren't wrong when they said their no-interest loan bribe wouldn't cause an explosion in student debt: they just didn't care two hoots that it would.  What interested them far more, and interests them still, is getting their bums back on the Treasury benches -- and short-sighted students were ideally placed to lap up their bribe and repay it later in the country's polling booths. 

The attention span of student presidents may be shorter than the average spin cycle; there's no need for anyone else's to be.

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5 Comments:

Anonymous recipient of a free education said...

Are you not forgetting that the loans are taken out to PAY for education.

2 questions:
1) What were the fees for your degree?
2) Did you get an allowance when you were studying?

1/25/2008 01:53:00 pm  
Blogger PC said...

I worked my way through my degree. I paid more each year in tax than I ever got in allowances.

1/25/2008 03:07:00 pm  
Blogger Cactus Kate said...

PC, show some respect. Please list me in front of the National Party pinkos in description next time.

1/26/2008 04:31:00 am  
Blogger Lyndon said...

It's scary how close the Herald story is to the press release http://www.scoop.co.nz/stories/ED0801/S00025.htm

A stuff article has the offical loan figures: up 25% owing over two years (doesn't say to when).

A lot of it is actually does seem to be bank debt.

At $150p/w there's only so much maxing out of a student loan you can do.

1/28/2008 12:14:00 pm  
Anonymous Neo-Liberals are crap in the sack said...

Peter,

Total average debt for students has risen by 54% since 2004. The TNS Conversa research includes Credit Cards, Overdrafts, Personal Loans, etc (but not mortgages)in its total. This is more to do with easy credit, dodgy banks, and a general lack of student support than the removal of interest.

Churr

1/28/2008 09:47:00 pm  

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