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

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news