Radio New Zealand - Te Reo Irirangi o Aotearoa
27 May 2012 - 4:59 pm NZ time
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Student loan restrictions limit entitlements
Updated at 9:03 pm on 19 May 2011
New restrictions on student loans announced in the Budget will reduce entitlements for more students.
Eligibility for loans will be restricted for students whose existing loan payments are overdue by more than $500 and are in default for longer than a year.
Part-time full-year students will no longer be able to borrow for course-related costs.
From January 2013, students over the age of 55 will not be able to borrow for living costs.
The Government has also shortened the repayment holiday for students who travel overseas from three years to one year.
Tertiary Education Minister Steven Joyce says the changes will limit lending to students who he says are less likely to repay their loans.
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