Most young people 'following their noses' to find work, not dodging student loans, economist says
Higher repayments for student loans are unlikely to be the deciding factor for anyone weighing up whether to move, say economists.
Young people leaving New Zealand to pursue work opportunities abroad have been influenced more by the job market than their desire to avoid student loans, according to economists. The government plans to reduce the repayment rate for student loans from 12% to 10% from April next year, with stricter penalties for those in default.
While overseas borrowers would face higher interest rates, the impact might be seen as unfair. Westpac's Chief Economist Kelly Eckhold noted that youth unemployment is high, making young people more likely to follow job opportunities overseas. However, National's proposed changes to student loans may not significantly influence this trend, as many students leave for reasons beyond employment.
UK interest in New Zealand citizens has dropped to its lowest level in 20 years due to a challenging job market. Despite New Zealand's economic challenges, more Kiwis are returning home as conditions elsewhere become less favorable.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
