Newstalk ZB can reveal Cabinet went against official advice on freezing student loan repayment thresholds

In January, Ministers agreed to indefinitely suspend the policy of annually adjusting repayment thresholds by the rate of inflation.

Cabinet decided to permanently keep that threshold at 24,128 dollars a year.

But information released under the official information act shows Treasury told Ministers it should continue to rise, matched to inflation.

Not doing so would adversely impact those on lower incomes, and only constitute relatively small Government savings.

Minister, Simon Watts, says Ministers consider a range of factors - that may not be reflected in officials' advice.