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

 

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Budget: Health Funding Must Keep Up With Need

NZNO: “The nursing team has been doing more with less for years. It’s getting to the point that we’re really worried about our colleagues, our patients, our jobs and the level of health care available for people in our country." More>>

ALSO:

Emissions Inventory: Time For The Government To Do The Right Thing

It’s time for the National Government to step up and do the right thing to reduce climate pollution as data shows New Zealand’s greenhouse gas emissions are higher than ever, the Green Party said today. More>>

ALSO:

Budget 2016: More Partnership Schools To Open

Seven new schools will join the eight Partnership Schools already open, along with further new schools opening in 2017. “The growth of this policy is a reflection of the high level of interest from educators and community leaders,” Mr Seymour says. More>>

ALSO:

No Correspondence With English: Did Brownlee Make Up Sale Of Navy Ships ‘On The Hoof?’

Having revealed that several Royal New Zealand Navy vessels have not left port in years, New Zealand First is now asking the Minister of Defence to prove he did not come up with the idea of selling HMNZS Taupo and Pukaki until the media asked him. More>>

Housing Plans: Labour- Abolish Auckland Urban Boundary
The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis. More>>
Greens - State House Solution
The Homes Not Cars policy allows Housing New Zealand to retain its dividend and, in addition, would refund its tax, to spend on the emergency building of around 450 new state houses. More>>

ALSO:

Houses And Taxes: Post-Cabinet, Pre-Budget Press Conference

The Prime Minister said that the pre-budget announcements showed that his Government is “investing in a growing economy”. He re-affirmed the National Government’s commitment to lowering personal tax rates but that any such change must fit with the fiscal reality of the time. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news