We have the most generous student support systems in the world.  The National Government is committed to  interest free student loans.

Rebalancing it will free up some money to reinvest in tertiary education and help our overall fiscal position.

Because of the previous Government, the cost of student allowances to taxpayers has grown from $385 million in 2007/08 to $620 million in 2010/11.

Our proposed changes to the loans scheme will give $60 to $70 million of annual savings, which will be largely re-invested across the wider tertiary system.  For many graduates, the weekly repayment obligation will only rise by between $2 and $7 per week.

We need to reduce the  overall cost to the taxpayer while still supporting students.  This is the best way to do it.