Govt moves to save student loan scheme

Press, 11 July 1989, Page 1

Govt moves to save student loan scheme

By

PETER LUKE

in Wellington The Government seems set to make a last-ditch effort to salvage a loan scheme for tertiary students in time for next year by negotiating with individual banks. If this fails, the Government will proceed with the targeted tertiary scheme outlined last week by the Associate Minister of Education, Mr Goff. Either way, tuition fees will rise to help pay for the creation of about 6000 new tertiary places. For students, renewed talks will spell the difference between paying course fees of up to $l5OO up front (with exceptions on equity grounds), or paying fees of up to $2OOO but using the in-terest-free student loan scheme with repayments delayed until they earn about $22,000. Late last week the student loan option, the Government’s prefer- ■ ence. had appeared dead as far

as 1990 was concerned. Although Mr Goff never specifically and categorically ruled it out, his alternative targeted scheme seemed to indicate this. In a speech last evening, he said the loan scheme was put on hold after the breakdown of talks with the Bankers’ Association. But earlier yesterday the Acting Prime Minister, Mr Palmer, said the student loan option “never came off the table.” Negotiations with banks would continue, but progress ‘ would have to be made rapidly if next year’s students were to have the loan option, Mr Palmer said. Mr Goff said last evening that discussions would resume because of association indications that banks were prepared to continue negotiations. One basis of this belief appeared to be a comment by the association chairman, Mr Jim Macaulay, last Thursday, that the Government had misinterpreted

their earlier walkout from discussions as a final stance. But Mr Macaulay yesterday said he did not believe that the association could resume discussions when Mr Goff had accused it of collusion and lodged a complaint with the Commerce Commission. Mr Palmer hinted that the new talks would be with individual financial institutions, but did not specify with whom. Asked if there had been some indication that a bank would break the socalled collusion, he replied: “There have been some indications of some interest in some quarters. I wouldn’t put it any higher than that.” As chief executive of the National Bank, Mr Macaulay said he had not approached the Government, but that if the Government approached him he would discuss a loan scheme. “If they come to us, we will talk,” he said.