Government lifts student loan cap

The Government has extended the student loan borrowing cap for medical students, and those doing longer degrees.

The previous government introduced a seven-year borrowing limit in 2011, and extended it by one year in 2016 for students on specific courses.

Education Minister Chris Hipkins said some students reached the limit before they have completed study, which created financial barriers to them completing their qualifications. From the start of next year, the limit will be extended to 10 years for medical students and those studying dentistry, optometry or veterinary science.

‘‘Students in long undergraduate programmes are affected by the limits on borrowing disproportionately compared with students in other programmes,’’ Hipkins said.

The New Zealand Union of Students’ Associations (NZUSA) national president Jonathan Gee said allowing future doctors, vets and dentists to finish their studies was ‘‘a no-brainer’’. The change was likely to result in greater equity for students wanting to enter certain health professions, Gee said.

‘‘We have heard stories of students from disadvantaged backgrounds taking a little longer to realise their dreams of entering programmes like medicine. They shouldn’t be denied their dreams simply due to an arbitrary cap.’’

Students had been calling for an extension to the cap for a while.

However, there was more to be done to remove unfair barriers to education, he said.