National says a re-elected government would cut the compulsory student loan repayment rate from 12 percent to 10 percent of income above the repayment threshold, from April 2027.

What it does

The rate is the share of income above the threshold that is automatically deducted to repay a student loan. Dropping it from 12 to 10 percent slows repayment rather than reducing the debt, so borrowers keep more each pay but carry the loan for longer. National put the effect at about $39 a fortnight, or roughly $1000 a year, for a graduate earning $75,000. Finance spokesperson Nicola Willis and leader Christopher Luxon announced it at Rocket Lab, with Willis saying loan repayments are often one of the biggest weekly expenses for a young graduate and Luxon framing it as real money in graduates' back pockets that would encourage them to stay in New Zealand. The package also tightens the treatment of overseas-based borrowers, including higher interest on their loans and restricted KiwiSaver access.

The result

Labour's Shanan Halbert said any relief for graduates would be welcome but that young people would judge National on its whole record, and asked why so many young New Zealanders are struggling to get ahead and choosing to build their futures overseas. Victoria University Students Association president Aidan Donoghue called the announcement a solid meh, saying it is a step in the right direction but not much of a tangible change, since the money is still repaid in the long run.