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


Reduced repayment times for student loans

18 December 2007 Media Statement

Reduced repayment times for student loans

Student loan repayment times are falling. That is the main finding reported in the Student Loan Scheme annual report tabled in Parliament today by the Minister for Tertiary Education, Pete Hodgson.

The report shows that of those who finished their study in 1999 and remain in New Zealand, half repaid in around seven years. For those who left in 2003 – who have had the benefit of no interest while studying, plus a strong employment market – repayments times are shorter. Half are expected to have repaid within six years of completion and three-quarters within 11 years. The report also shows that women repay just as fast as men.

“Reduced repayment times are the result of measures the Labour-led government took to improve the affordability of tertiary education,” said Pete Hodgson. “We cut interest while studying in 2000, we have controlled fee rises and last year we removed interest for those who have finished their studies.”

The report also quotes research on the longer term outcomes of borrowing. It shows that those who take out loans and gain tertiary qualifications do better in the labour force. They have lower unemployment, higher incomes and increased wellbeing. In addition, having a loan does not play a significant part in decisions on home ownership or having children. Nor is it significant in determining if people leave New Zealand.

“The loan scheme is an important means of opening access to tertiary education for New Zealanders,” said Pete Hodgson. Since 1994, the percentage of New Zealanders aged 15 and over who have participated in tertiary education has increased from 8.9 percent to 13.4 percent, and the number of people with Bachelor qualifications or higher has nearly doubled.

The report shows that 167,420 people used the loan scheme in 2006, with half borrowing $5,663 or less. Of the 499,259 people with a student loan, half owe $11,087 or less.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

New TPP Agreed: Govt Must Explain How Canada Got Changes

Jane Kelsey: Overnight in Japan the remaining eleven governments have concluded the ‘revised’ but essentially unchanged Trans-Pacific Partnership Agreement (TPPA-11), now called the Comprehensive and Progressive Agreement for Trans Pacific Partnership. The signing is set for 8 March 2018 in Chile.

University of Auckland law professor Jane Kelsey predicts ‘the rebranding of the TPPA won’t fool anyone...

Canada has reportedly secured new protections for culture, as well as rules of origin for automobiles, which was not on the list of outstanding items in the TPPA-11 ministerial statement in December last year. More>>


Wellington.Scoop: Our Housing Crisis – And The Unintended Consequences

There is no doubt that we are having some huge issues with housing in Wellington. Finding somewhere to live is becoming increasingly difficult and expensive... But why? And what happens next? More>>


Ministerial Inquiry: Broad Look At Mental Health And Addiction Services

The Government has taken a major step towards improving mental health and addiction services with Prime Minister Jacinda Ardern announcing details of a ministerial inquiry. More>>


Wealth: Two NZers Own More Than Poorest 30%

A staggering 28 per cent of all wealth created in New Zealand in 2017 went to the richest 1 per cent of Kiwis, while the 1.4 million people who make up the poorest 30 per cent of the population got barely 1 per cent, according to new research released by Oxfam. More>>


Employment: Joint Working Group On Pay Equity Principles Reconvened

Minister for Workplace Relations and Safety, Iain Lees-Galloway, and Minister for Women, Julie Anne Genter, are reconvening the Joint Working Group on Pay Equity Principles as the next step in pay equity for New Zealand women. More>>


Hapū: Prime Minister And Clarke Gayford Expecting First Child

Prime Minister Jacinda Ardern and her partner, Clarke Gayford, have announced that they are expecting their first child in June. “We’re both really happy. We wanted a family but weren’t sure it would happen for us, which has made this news unexpected but exciting." More>>


Gordon Campbell: on the inquiry into the abuse of children in care

Apparently, PM Jacinda Ardern has chosen to exclude faith-based institutions from the government’s promised inquiry into the abuse of children in state care. Any role for religious institutions – eg the Catholic Church – would be only to observe and to learn from any revelations that arise from the inquiry’s self-limiting focus on state-run institutions… More >>

Gordon Campbell: On Jim Anderton
For anyone born after 1975, it is hard to grasp just how important a figure Jim Anderton was, for an entire generation.
During the mid to late 1980s, Anderton was the only significant public figure of resistance to the Labour government’s headlong embrace of Thatcherism...More>>





Featured InfoPages