Decade of Debt The Cost of Interest-Free Student Loans

"Just over a decade ago, the government stopped charging interest on student loans. Before 2006, student loan debt drew interest after the borrower left school. The Labour-led government argued that loan repayment times were burdensome for too many graduates. And so, from 2006, student loan debt would carry no interest until the loan was repaid. A decade on, the policy has proven rather expensive with no substantial benefits. Removing interest payments from existing student loans cost the government over $1.4 billion in 2006, and the costs have mounted since then. And despite the rather high cost, the programme has not proven particularly effective at achieving its stated goals of making tertiary education more accessible for everybody - no matter their background ..."--Publisher information.