Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Loans one of many factors driving student OE

2 May 2006

Student loans one of many factors driving student OE decisions – new study

People with higher levels of student debt are more likely to go overseas post-study. But student loans and their size are not the only factors associated with the decision to live overseas, according to a report released today by the Minister for Tertiary Education Dr Michael Cullen.

“The report found that factors such as level and field of study, age, ethnic group, and citizenship status, also influenced the likelihood of people living overseas,” Dr Cullen said.

“In addition, what this new study suggests is that factors not included in this analysis, such as individual preferences, personal circumstances and employment opportunities, are possibly more important factors in the decision of New Zealanders to live overseas,” he said.

The Ministry of Education report “Do student loans drive people overseas – what is the evidence?” followed 23,000 students who finished studying in 1997 with a student loan and looked at who was likely to be overseas in 2002.

The report was based on information from the Ministry of Education, Statistics New Zealand and Inland Revenue. Inland Revenue recently advised that the total number of loan borrowers known to be overseas on 31 March 2006 was 26,864.

The report considered the effects of factors such as loan levels, demographics, and study undertaken on the likelihood of borrowers being overseas five years after finishing tertiary study.

The report supports earlier studies showing that borrowers with higher student debt were more likely to be overseas, once differences in demographics and study choices were taken into account.

“But the report suggests that the amount of student debt was not likely to be the sole reason for a borrower being overseas,” Dr Cullen said.

The new interest-free student loan policy provides an important incentive for young New Zealanders to stay and contribute to our economy or to return from overseas. The government has introduced an amnesty for borrowers in default – again targeted at encouraging borrowers overseas to return home. And since 2004, the Government has introduced a range of scholarships requiring the recipient to stay in the country when they finish study.

“While loans are not the only factor in people going overseas, they are clearly having an effect. This report confirms that we were right to make changes to the loan scheme as one way of encouraging New Zealanders to stay and contribute to our society,” said Dr Cullen.

“There isn’t anything wrong with young people spending time overseas after they finish their studies. It’s only a problem if they don’t return,” said Dr Cullen. “In fact, research suggests that New Zealanders who live overseas pick up new skills and insights they are able to contribute to the New Zealand economy when they return.”

The report may be downloaded from:


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news