NZ banks called on to assist students

by Richard Kilner

Story link: NZ banks called on to assist students

Bankers’ union Finsec and the New Zealand Union of Students’ Association have issued a combined message saying that students in financial difficulty need assistance to stay out of debt with crippling interest rates.

The two organisations have called on the banking industry in New Zealand to reconsider the services it offers to students.

Recent statistics have shown that students are bearing an increasing burden of debt, including credit card debt.

A survey conducted by the NZUSA indicates that average student debt has soared by 32% in recent years.

The figures have led to Paul Falloon, the organisation’s co-president, calling on banks to reduce penalties banks impose for defaulting on debt.

Falloon has also requested that banks provide loans and overdrafts with a 0% interest rate as a last resort for the most needy students.

Finsec has supported the NZUSA’s position, adding that the banking system in New Zealand needs to move to a more ethical stance when dealing with students.