1. Keep Interest-Free Student Loans
National will keep interest-free student loans for tertiary students.
2. Establish an Early Repayment Bonus
National will introduce a 10% repayment bonus on a loan balance for voluntary lump-sum payments of $500 or more. This incentive would apply in the 10 years following the start of repayments by the borrower.
If, for example, a borrower pays $800 off their student loan in a lump sum above and beyond the compulsory requirement, the Government would take $880 off their loan balance.