Student Loan Scheme Annual Report 2009

Publication Details

The Annual Report for 2009 provides information on the scheme and those who borrowed from it in 2008, as well as the financial schedules for the fiscal year to 30 June 2009.

Key findings in the report are:

  • The nominal value of loan balances was $10.259 billion as at 30 June 2009
  • 179,000 students borrowed from the loan scheme in 2008 (69% of eligible students)
  • As at 30 June 2009 562,000 people had a student loan with Inland Revenue for collection
  • The median repayment time for those who left study in 2006 is forecast to be 7 years

Author(s): Ministry of Education.

Date Published: November 2009

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Student Loan Scheme Annual Report October 2009: Incorporating the Financial Statements to 30 June 2009

Foreword

I am pleased to present the 2009 Student Loan Scheme Annual Report and the 2008/09 Financial Statements.

It has been 17 years since student loans for tertiary study were introduced with the aim of providing improved access to tertiary education by sharing the costs between students and government.

Tertiary education is an essential part of New Zealand's culture and economy. A well-educated population benefits individual New Zealanders by providing them with skills and knowledge which afford greater personal opportunities. As a nation, tertiary education provides New Zealand with the resources required to meet the changing needs of the New Zealand population both nationally and on the global stage.

Since its introduction in 1992, 833,000 New Zealanders have used the loan scheme. This equates to about 25 percent of the population of New Zealand in 2008 who were aged 15 or over. The number of New Zealanders who have accessed the scheme in each year has grown from 44,000 in 1992 to 179,000 in 2008. This increase reflects the fact that more people are studying at tertiary level and are using the loan scheme as an effective means to help fund their tertiary education. In the 2008 academic year, 69 percent of students eligible to borrow from the loan scheme did so, borrowing a total amount of $1,241 million. More than 260,000 people have repaid their student loans in full since the loan scheme began.

The purpose of the Student Loan Scheme Annual 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.

This year's report details how the loan scheme has developed in recent times, what happened in 2008 and how this compares with earlier years. The report also includes the financial statements for the fiscal year to 30 June 2009 and an independent audit opinion. While the nominal value of loans has increased over recent years to $10,259 million, the scheme's valuation has fallen in the last year. This has been due to changing economic conditions, better information about borrower behaviour and improved modelling.

The information provided within this report is a collation of data held by the Ministry of Social Development, the Inland Revenue Department, Statistics New Zealand and the Ministry of Education. These four agencies have worked together to provide an accurate and up-to-date picture of the loan scheme as it operated in 2008 and the financial situation in the 2008/09 fiscal year. The report also outlines future developments and provides forecasts of future loan participation and expenditure.

This report produces a comprehensive overview of the Student Loan Scheme and the many New Zealanders who, with the help of the loan scheme, have chosen to invest in their future and in the future of New Zealand.

Karen Sewell

Secretary for Education