Student Loan Scheme Annual Report to 30 June 2008

Student Loan Scheme Annual Report October 2008: Incorporating the Financial Statements to 30 June 2008

Foreword

I am pleased to present the 2008 Student Loan Scheme Annual Report and the 2007/08 Financial Statements.

The overall number of people who have taken out a student loan since the scheme began is 779,000, representing about 23 percent of New Zealanders who were aged 15 or over at the end of 2007. Since 1992, 237,000 loans have been fully repaid.

It is now sixteen years since the introduction of student loans for tertiary study at the beginning of the 1992 academic year. Over this time, the loan scheme has been frequently modified to better meet the changing needs of New Zealand and its people.

The number of New Zealanders who have accessed the scheme each year has grown from 44,000 in 1992 to 174,000 in 2007. This increase mirrors the growth in the number of people who choose to study at the tertiary level and the increase in student loan uptake rates. The total amount borrowed in 2007 was $1,173 million.

This year’s report looks at the development of the loan scheme, what happened in 2007 and how this compares with earlier years. The report also includes the financial statements for the fiscal year to 30 June 2008 and an independent audit opinion. Some new and improved methodologies have been used to produce the statistical information.

The purpose of this report is to provide public accountability information to government and to New Zealanders to assure them that the scheme is being properly managed and achieving its primary objective – that tertiary education is attainable for all New Zealanders.

The information provided in the report is a collation of data held by the Ministry of Social Development, Inland Revenue, Statistics New Zealand and the Ministry of Education. These four agencies have worked together to bring you an accurate and up-to-date picture of the loan scheme as it operated in 2007 and the financial situation in the 2007/08 fiscal year. The report also looks at future developments and provides forecasts of future uptake and expenditure.

This interagency cooperation allows me to present you with what I believe is an interesting and comprehensive insight into how many New Zealanders are choosing to invest in tertiary education with the help of a major investment of public funds – the Student Loan Scheme.

Karen Sewell

Secretary for Education