Students not paying off loans
Sunday, September 10th, 2006A dramatic fall-off in the amount of voluntary student loan repayments since the government scrapped interest shows graduates no longer have any incentive to pay off their debt to taxpayers, says the National Party.
Inland Revenue figures reveal payments made directly by borrowers (including the self-employed) has dropped by $54.2 million, from $239m last year to $185m for the year ending June 6.
However, borrowers repaying their loans via PAYE tax are making a bigger dent in their debt.
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