Student Loan Scheme Annual Report 2000

Publication Details

The Student Loan Scheme Annual Report for the financial year ending 30 June 2000, incorporating the financial report to 30 June 2000.

Author(s): Ministry of Education, Inland Revenue, and Work and Income New Zealand.

Date Published: December 2000

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Summary

Foreword

Te whakapuakitanga

The Student Loan Scheme was established in 1992 to assist students to overcome financial barriers to undertaking tertiary study.

From 1992 to 1999 the Ministry of Education was responsible for administering the application and delivery aspects of the Student Loan Scheme. From 1 January 2000, administration of the delivery of the Scheme was transferred to the Department of Work and Income. The Ministry of Education has retained responsibility for providing strategic policy advice to government, and Inland Revenue has retained the responsibility for assessing and collecting loan repayments under the Student Loan Scheme Act 1992.

In addition to reporting the Scheme's financial position for the period ending 30 June 2000, this report provides an overview of the Government's policy for student financial support. The report also provides general information about borrowers' use of the Scheme since its inception and combines information from the Ministry of Education, Department of Work and Income, and Inland Revenue.

Together with tuition subsidies and student allowances, the Student Loan Scheme forms a package of financial measures designed to support the participation of all New Zealanders in tertiary education. The aim of the Scheme is to ensure that no student is denied access to tertiary education because they lack sufficient finance. Repayment is deferred until the borrower earns sufficient income, with a considerable proportion of interest charged during the period of low income being written-off.

Recent changes to Student Loan Scheme policy will make tertiary education more affordable and will assist both current students and those who are no longer studying. Full-time, full-year students and low-income students will pay no interest on their loans while they are studying in 2000 and beyond. In addition, new repayment provisions will accelerate the repayment to principal for any current student who does not qualify for a full interest write-off and all former borrowers. This will reduce the length of time that it will take for borrowers to repay their loan. There is also ongoing work underway to improve the reporting of the Loan Scheme.

Nâku noa, na

HOWARD FANCY                                                      
Secretary for Education               
Ministry of Education

JOHN PERHAM
Commissioner of Inland Revenue

CHRISTINE RANKINChief Executive Officer
Department of Work and Income