Political Parties React to $20 Student Loan Bump
Words by Ethan Manera (he/him)
Last week, the government announced a sweet treat for struggling students in the form of a $20 bump to weekly student loan and allowance payments.
The extra support is part of a cost of living package which will see beneficiaries, pensioners, and those who receive student loan and allowance getting a 7.2% rise in their payments to meet inflation.
“In a cost of living crisis, we can’t leave those on the lowest incomes and government support behind,” said Carmel Sepuloni, Social Development Minister.
Other political parties have been notably quiet about their stance on the policy. Salient did the rounds to show you, young voter, where each party stands on the extra support.
National’s finance spokesperson Nicola Willis said the party does support the increase, but says it is “very unlikely to make any students feel better off”.
“We accept that increasing student loans and allowances has been something that successive governments have done, and that we will do [if National gets into government].”
“We actually have to address the drivers of the cost of living crisis that is impacting students hugely. In particular, we identify housing costs [and] we want to stop the war on landlords,” Willis said.
The Green Party are strongly in favour of the increase, but are calling on the government to be more radical. Chlöe Swarbrick said, “The only thing standing in Labour's way is their own shadow. If they want to alleviate student poverty they could tomorrow.”
Swarbrick said the government needs to implement a universal student allowance for all students of $375 per week. “Two thirds of students regularly cannot afford the basics,” she said. “While of course, we welcome an increase to the amount that is going towards students, it's really important to know that this is obviously not going to all students.”
Te Pāti Māori Co-Leader Debbie Ngarewa-Packer said, “We need a fair, liveable student allowance for all tertiary students that isn’t tied to their parents’ incomes.” Ngarewa-Packer called the $20 rise “an insult” to students and said the allowance “should be double what it is today”.
“A student’s job is to study. They shouldn’t have to sacrifice basic needs every day just to get by,” she said.
Salient also gave Winston Peters a ring for his two cents. Peters surprisingly picked up the phone, telling Salient that “twenty dollars just doesn't cut it.”
“Education is not an expense, it's an investment. That's number one. It's clear as daylight… 20 bucks? 20 bucks does not pay for anything!” Peters said.
The Act Party refused to comment.
The change to student loan and allowance payments will be automatically implemented on 1 April. The weekly amount after the increase will be approximately $300 for students under 24-years-old living away from home who receive the student loan living cost payments or the student allowance.