We got this letter from a young listener, and Mary answers all of her questions:
I'd love to hear about student loans and some tips and tricks on how to deal with debt, especially at such a young age. Maybe you could get Mary Holm to talk about it.
For myself I'm wondering if it's best to save up money in a savings account or term deposit to gain interest and then pay it off in large amounts, or is it better to slowly chip away at it with smaller amounts that I'll barely notice? How will it affect my life if I don't rush paying it off and have it hanging over my head for 20 years, or is it best to make it a high priority to pay off? Travel is very important and I understand the interest rules in that area.
I'm a first year student with a bit of money in my bank from two years working prior to starting uni. I'm hoping to own a house before I'm 30 and I'd love to know the best way forward. I suppose having a large amount of money saved up to pay off a student loan could be tempting to keep for a deposit on a house, you never know where you'll be in 5 years time!
It is crazy to think of the millions of dollars of student debt in NZ and how much it is/isn't affecting people. It could also be interesting to wait to see what the new government will do with student loans and study fees over the coming years.
I thoroughly enjoy listening to you and Mary every second Thursday, you do have younger listeners tuning in!! I'm sure this is an interesting point for many people!!
All the best, Ayana