23 Feb 2009

Student loan bond details announced

11:29 am on 23 February 2009

A new bond scheme offering student-loan write offs or cash payments was announced by the Government on Monday.

Financial incentives will be available to teachers, doctors, nurses, midwives and veterinarians prepared to work in areas or specialties that find it difficult to attract staff.

Those taking part will have to work under bond for three years before receiving any money. Payments will be made for a maximum of five years.

New teachers will be eligible for $3500 per year before tax - to be paid towards their student loan, or as a cash payment if they do not have a loan.

Payment for doctors will be $15,873 before tax; $11,000 for vets; $5224 for midwives and for $4229 for nurses.

The bond scheme is expected to cost $30 million by 2012.