Labour announces universal student allowance


You've probably heard by now that Labour have made a big call and finally answered pleas from student organisations around the country to help reduce the financial ills many students face. The announcement was made on October 13 at Otago University that Labour would create a universal student allowance for all university students by 2012.  Currently, only 27% of students are eligible for a full allowance and the criteria required to receive the funding is very strict, forcing more people to borrow to survive. The level of student debt in this country currently sits at $10.4billion and is steadily increasing.

The call was welcomed by the New Zealand Union of Students' Associations, with Co-President Paul Falloon saying, "This is brilliant news and will be welcomed by hundreds of thousands of students who will no longer have to borrow to live. Student debt has been having significant negative effects on the New Zealand economy and society, so we congratulate Labour for recognising this and delivering a sensible and fair policy that looks to the future sustainability of the nation."

AuSM Jan Herman says, "I believe Labour's pledge to provide all NZ uni students a universal student allowance by 2012 to be one of the great stepping stones to ensuring that all young people in this nation are provided with a fair and decent education.

Also in student politics news, United Future MP Peter Dunne stopped by The University of Auckland last Tuesday to talk about his plans for zero fees and have a beer with some students. His plan is to use the funding Labour has said they will reserve for the universal student allowance and use it to pay for fees for everyone, the cost difference of which is only $100m, which may sound like a lot, he says, but when put in perspective it's actually quite reasonable to cover university education for everyone.

Mr Dunne told debate, "I just wonder whether in the longer term it would be better saying we have no fees and the trade off would be a significant reduction in student allowances. The level of debt would not increase if you did that and said, for instance, that the current $150 a week in living costs borrowing remained, you'd get people coming out of tertiary education with a maximum debt of around, for a first degree, $20,000."

Jan Herman's said on the matter: "I think United Future's zero fees policy can really help turn around our country's outrageous $10 billion student debt issue. I am highly supportive of this policy and any other policy that reduces student debt and still allows our young people to get a good education."


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