Radio New Zealand - Te Reo Irirangi o Aotearoa

Maori Party says Govt should reconsider loans clawback

Updated at 9:03 pm on 4 May 2012

Maori Party education spokesperson, Te Ururoa Flavell, says the Government should reconsider making changes to student loans and allowances.

From next year, the minimum loan repayment rate's rising from 10 cents to 12 cents in the dollar, and allowances after four years' study are being stopped.

The Government says the changes will save up to $70 million a year.

But Mr Flavell says Maori and Pasifika people will be unfairly affected by the changes.

He suggests it would be good for the Government to take "time-out" to consider other options.

Mr Flavell says unfortunately the Government is making bad choices over financial management.

He says it's far better to invest taxpayer dollars in the education of young people education rather than - for example - using the money to rescue finance companies.

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