26 Feb 2026

The case for lowering the threshold for interest on student loans

From Nights, 8:50 pm on 26 February 2026

Student loans -  the bane of many graduates and a political hot potato.

It's been used as a vote winner before, case in point, in 2005 when the Labour Party campaigned on interest-free loans for those who stayed in New Zealand.

And you can see why it would be an attractive option in election year, and a way to try to stem the number of graduates leaving for greener pastures overseas.

Political Editor at the New Zealand Herald Thomas Coughlan has been giving the issue some thought, and has suggested a case for raising the student loan threshold.

He joins Emile Donovan.

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Photo: RNZ / Kate Newton