Student loan repayments to increase

Student loan repayment rates in New Zealand will increase from Monday in a move that the government says will mean loans will be paid off more quickly, reports 3 News.

Tertiary Education, Skills and Employment Minister Steven Joyce said the median repayment time would decrease by around four months because of the new 12% rate. The government’s 2012 budget increased the rate from 10 cents to 12 cents per dollar of income.

The new rate would save the government $184.2 million (US$154 million) over four years, Joyce said. “Increasing the repayment rate is also assisting the government to reduce the cost of the scheme for taxpayers at a time of significant fiscal pressure.”
Full report on the 3 News site