Labour’s average student

Interesting to look at Labour’s average student with a starting salary of $38,000 and a loan of $40,000.

Not only would they pay their loan off two years quicker under National, but their nominal (non compounded or inflation adjusted) extra income after it is paid off is over $120,000 over their working life.

Labour’s student loan policy will only affect students for a few years – National’s will deliver lower taxes for life. And let’s be honest it is very obvious that Labour would never ever reduce taxes in future.

The other useful thing with National’s policy is students get the benefits of it the moment they are working. With Labour they don’t get any change to their disposable income until the loan is paid off.