Originally Posted by
elZorro
Our daughter has one of those loans, still on the increase until she graduates. It's part of the negatives I feel about NZ, why couldn't we set procedures, economy and taxes up so that all of our tertiary students get the nearly free education they used to get? Sure, there would have been stricter entry standards than now. But the system used to work.
Your article shows that there can be fine-tuning to the repayments system, to make it more polite and complied with. Penalty interest is a bad start, if it's excessive. I have an employee who didn't complete uni a few years back, and is paying off his student loan by drip-feed via PAYE. I know he has enough money in the bank to pay it off in full, he doesn't spend anything much, literally. But the miserable sod will just pay it off bit by bit, he probably begrudges every cent, and knows it's an interest free loan.