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

 


11 per cent increase in student loan repayments

Hon Steven Joyce

Minister for Tertiary Education, Skills & Employment
3 December 2012 Media Statement

11 per cent increase in student loan repayments

The latest Student Loan Scheme annual report shows an 11 per cent increase in repayments and a decrease in the overall cost of the scheme, Tertiary Education, Skills and Employment Minister Steven Joyce says.

These are some of the key findings of the report, which was tabled in Parliament today by the Minister.

“The Government remains committed to interest-free student loans, but it is important the scheme is affordable for students and taxpayers, and sustainable for the country,” Mr Joyce says.

“The write-down on student loan lending reached 47 cents for each dollar lent in 2008/2009. We have now reduced that to 39 cents in the dollar, and are working to reduce the cost further.

“The Government has been getting more young people through higher levels of tertiary education, and student loans are a key means to help with that goal. Our recent policy changes have focussed student loans more on people who are likely to achieve qualifications and then earn enough to pay back their loan in a reasonable time.”

“While we have seen some success in reducing the cost of the student loan scheme to taxpayers, it still remains high. The Government is working to improve the compliance of overseas based borrowers, and that initiative together with policy changes made in Budget 2012 will both tighten lending criteria and increase the speed of repayments.

“Inland Revenue is continuing to scale up its work to collect overdue repayments from overseas-based borrowers. To date, they have been successful in contacting and collecting from many borrowers who previously made little or no repayments toward their student loan,” Mr Joyce says.

The report’s findings include:

• The cost of lending has fallen 17.5% over the last three years. The cost fell from 47 cents per dollar in the 2009 valuation, to 39 cents per dollar in the current year.
• Repayments increased by 11% to $767 million in 2011/2012
• The median repayment time is 6.7 years and it reduces to 5.5 years for those who remain in New Zealand until repayment
• The valuation of the loan scheme increased by $286 million in 2011/2012
• The loans uptake rate by students was 74%, up from 73% in 2010/2011
• Inland Revenue is chasing borrowers overseas who aren’t meeting their repayment obligations. So far, they have gained $19.4 million, which is $12 for each dollar spent on the project.
For the full annual report, visit:

http://www.educationcounts.govt.nz/publications/series/2555

W: http://www.beehive.govt.nz and http://www.parliament.nz

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

NZEI Survey Report: Special Needs Students Missing Out

The survey revealed that around 16 percent of students were on schools’ special needs registers, but nearly 90 percent of schools’ special needs coordinators did not believe there was adequate support for students and their learning... More>>

ALSO:

Interim Report: Waitangi Tribunal On Ture Whenua Legislation

Labour on Proposed changes to Maori land rules: “To have Treaty Negotiations Minister Chris Finlayson dismiss findings as ‘bizarre’ is totally disingenuous and disrespectful. What’s bizarre is Maori Development Minister Te Ururoa Flavell stubbornly pushing through this Bill before the Waitangi Tribunal has even completed its report..." More>>

ALSO:

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Protests Close Roads: TPP Signed In Auckland

“TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam.” More>>

ALSO:

Emails Behind 'Diplomatic Immunity' Case: Whitehead Report Released

“As previously indicated the conclusions reached by Mr Whitehead’s investigation are not unexpected but they are very disappointing,” Mr Mccully says. “At the heart of the matter is a single email, along with procedural shortcomings, which gave Malaysian officials the impression it would be acceptable for Mr Rizalman to return to Malaysia." More>>

ALSO:

Gordon Campbell: On The Treaty/TPP Overlap, And Iowa

The fears about the ISDS provisions in the Trans Pacific Partnership deal are well-founded. The reality is that there is a sharp uptick in the occurrence of ISDS litigation in developed countries, and even the right wing likes of The Economist have been souring on the process for some time. More>>

ALSO:

Christchurch Red Zone Offers: Fresh High Court Proceedings

Grant Cameron, Solicitor for the Quake Outcasts said “the action seeks judicial review of the Crown’s recent decision to make a fresh offer to purchase properties from uninsured property owners in red zones. More>>

ALSO:

PM's Post-Cabinet Press Conference: Waitangi And TPP

Prime Minister John Key on Tuesday said his office has received an invitation for him to visit the Lower Marae on Waitangi Day, but was waiting for a meeting of the Te Tii Marae Trustees. More>>

ALSO:

Flagged: 'Wrong Colour' Bridge Flag To Change

NZ First: Only 13 days after National trumpeted its legally questionable flag on Auckland Harbour Bridge, it is now coming down because it is the wrong colour... “Mr Key’s latest flag fiasco is another waste of taxpayers' money. Given it is coming down, down is exactly the location where it should remain. More>>

ALSO:

School's In: Children Head Back To School

“Across the whole of this year we expect 61,820 five year olds will begin their primary schooling for the first time,” says the Ministry of Education head of sector enablement and support Katrina Casey. More>>

ALSO:

Dog & Lemon: FBI Disagrees With NZ Government Over Police Chases

Multiple studies, quoted by the FBI, show that once suspects realise they're no longer being chased; they tend to slow down to normal driving speeds and therefore become far less of a risk. The FBI report also categorically rejected the argument that abandoning police chases meant ‘giving in’ to offenders. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news