Tanczos Nandor: Questions for Oral Answer — Questions to Ministers 
Tanczos Nandor: Questions for Oral Answer — Questions to Ministers 
[Volume:626;Page:21145] 
12.  
NANDOR TANCZOS (Green) 
 to the  
Minister of Education 
: How much has total student loans outstanding increased in the last 6 years and what level is this total forecast to reach by 2010? 
Hon TREVOR MALLARD (Minister of Education) 
: 
 By the sum of $3472 million and $10017 million respectively. 
Nandor Tanczos 
: Is the Minister aware that around 13 percent of the population aged over 15 now owe money to the student loan scheme—that is over 400000 people—and does he agree that student debt is affecting the ability of many of them to buy homes and raise families? 
Hon TREVOR MALLARD 
: I am not aware of the exact figures but I do know that the work that has gone on between the Inland Revenue Department the Ministry of Social Development and the Ministry of Education has shown that there is a slight deferral on people’s home purchase but not a deferral on having children. 
H V Ross Robertson 
: Can the Minister tell the House what has been the impact of the Government’s steps to reduce student loan growth? 
Hon TREVOR MALLARD 
: Average loan repayment times are down from 14.8 years—that is 14.8 years in 1999—to just 9.3 years now. Under our Government the average student loan balance grew by just 15.4 percent from 2000-04 compared with a 76 percent rise in the last 4 years of the previous National Government. I must say though that the approach of the National Party to abolish the student loan scheme and to— 
Madam SPEAKER 
: The Minister knows that that is not relevant to answering the question. 
Bernie Ogilvy 
: Will the Minister consider as a way of reducing student loan debt progressively lowering the age at which the eligibility for allowances is based—on students’ own income and not that of their parents from the age of 25—now that the Greens have joined in supporting that proposal from United Future? 
Hon TREVOR MALLARD 
: I will just tell the member that the Greens had that policy before United Future was born. 
Nandor Tanczos 
: Why does the Government think it is cheaper for a student to rent a room than it is for other people as reflected in the policy of a maximum student accommodation allowance of $60 as opposed to a maximum of $145 for someone on the unemployment benefit? 
Hon TREVOR MALLARD 
: I think it is a reflection of a recognition on the part of the Government that student accommodation generally tends to be cheaper than that of the population generally. 
Nandor Tanczos 
: Is the Minister aware that if current policies continue by 2010 the Government will be earning almost as much from interest on existing debt—around $800 million—as it plans to lend in new loans to students each year which is around $1100 million? 
Hon TREVOR MALLARD 
: I am aware that there is a point of balance at some point and I do not regard that as much of a problem. The fact that we are in balance—money coming in money going out—is probably quite a good thing for Treasury. 
Nandor Tanczos 
: Well can the Minister confirm that according to current projections by 2010 the Government will be relying heavily on student loans to meet its net debt targets and that net Government debt would be nearly 40 percent higher if it were not for student loans? 
Hon TREVOR MALLARD 
: I think the member has got that the wrong way round. Net debt if it were not for student loans would be a lot lower. 
Nandor Tanczos 
: Is the Minister aware that student debt has increased by well over $78000 simply over the course of today’s question time? 
Hon TREVOR MALLARD 
: Given the length of this damn question time I am surprised it is only as much as that.