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Interest Coming Back for NZ Student Loans?

16/5/2017

 
The government's own Productivity Commission has identified major issues with tertiary education in New Zealand:

...tertiary education system is not well-placed to respond to uncertain future trends and the demands of more diverse learners. The system is not good at trying and adopting new ways of delivering education, and does not have the features that will allow it to respond flexibly to changing circumstances.

Tertiary teaching quality is also an issue. The Productivity Commission believes that reintroducing interest on New Zealand based student loan borrowers is the way forward.

​It seems that it is probably only a matter of time before interest is reintroduced. We believe that current borrowers, and intending students, need to take this risk into account. The smaller your student loan debt, and the faster you repay it, the less your risk of financial disaster if the law changes. The law can change without your knowledge and the IRD may not contact you until your debt has grown very large. Fees for a course that you have already signed up for can increase while you are in the middle of the course, leaving you in financial difficulty or with a much higher than expected student loan.

If you are a potential student, our advice is to carefully evaluate the likely costs (now and if interest is added) and benefits of tertiary education, before you sign up. It is true that tertiary education can have many benefits, including greater financial well being, but this does not apply to all courses or all students. Many countries have free, or nearly free, tertiary education options. Even in the case of Australia, while many were dismayed at the increase in university fees for New Zealanders, consider that their student loan repayment threshold and repayment requirement is more borrower friendly than is the case for New Zealand. 

​The main thing is to be aware of all possible options and risks before blindly jumping into debt.


Study in Germany for Free

12/5/2017

 
Germany offers over 400 universities. Overseas students can study for free, you are allowed to work part time while studying, and when you are done with study, Germany welcomes you to stay and find a well paid, rewarding job.

New Zealand's GDP is between the 50-60th in the world, putting the economy on a similar level to Iraq and Vietnam. This explains why many graduates cannot find jobs and are forced overseas to work. In contrast, Germany has the fourth strongest economy in the world and an excellent quality of life. Not only do they have student friendly policies like no fees, they are hungry for your skills. It could be worth  considering.

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