By Deanna Harris
Revenue minister Peter Dunne has criticised a Labour MP’s comments on a proposed student loan company.
The Government has no plans to set up a private company to manage student loans, said Mr Dunne and Tertiary Education Minister Steven Joyce in a joint statement.
Comments on a proposed student loan company from Labour tertiary education spokesman Grant Robertson were described by Mr Dunne as “totally unfounded mischief-making”.
“Mr Robertson totally ignored the fact that the article he sourced the information from already had a very clear statement of denial from the Government,” Mr Joyce said.
“This is just typical Opposition game-playing,” he said.
As for improving repayments Mr Dunne said different options are being looked into.
"With regard to possibilities around debt collection, for the most part, loans are paid off as they should be, but regularity of payments tend to slip especially when borrowers move overseas,” Mr Dunne said.
"To improve the efficiency of repayments from overseas, officials are investigating a number of options, including the possibility of more actively pursuing debts owed by overseas-based borrowers,” he said.
The total amount borrowed increased by 20 percent in the first three months of this year compared with the same period last year.
"The Government is constantly looking at ways to improve the management of the student loan debt which now stand at in excess of $10 billion,” the ministers said.
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