Goff argues loans issue with students

Press, 13 May 1989, Page 11

Goff argues loans issue with students

By

JENNY LONG

University students and the Associate Minister of Education, Mr Goff, finished even on points in their sparring match on student loans yesterday. Speaking in Christchurch to the University Students’ Association conference, Mr Goff defended the Government’s decision to charge students $2OOO for each year of their tertiary education. Students could take out a loan, repayable once they start earning the average wage. The scheme would start next year. Students told Mr Goff they fully agreed that more money was needed for tertiary education. The way to gain the funds was through a tax on wealth, not a tax on education.

Mr Goff repeated the argument that government spending on tertiary education had increased in real terms, and could not go on increasing.

Students were also being given additional “up front” income support in the increased amounts being paid out in youth support, he said.

Student leader are opposed to the big fee rise, and said that once the principle of charging

students is established, then bigger and bigger increases could follow. Mr Goff admitted that the $2OOO fee, which is about 20 per cent of course costs, had to be a “somewhat arbitrary figure.” Clearly, it was not possible to guarantee the size of the contribution future governments would expect from students, Mr Goff said. “That has got to be in the minds of electors as they go to the polls,” he said to laughter from the 40 or so students. Negotiations with banks over their part in the loan scheme were “at a delicate stage,” and he did not want to compromise any discussions. Much speculation existed that banks would be unwilling to take part in the scheme. This would leave the Government benefiting far less. Students outlined their objections to the increased fees, with one impassioned speaker telling Mr Goff that she was from a lower socio-econo-mic family. “We’re here now, but in small numbers. We won’t come if, when we are considering whether to go on to tertiary study, our families and ourselves see a $6OOO debt,” she said.