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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Highlights

Student Loan Scheme portfolio

As at 30 June 2009:

  • The nominal value of loan balances was $10,259 million. (Refer to chapter 4.0.)
  • The carrying value of the loan scheme – calculated using New Zealand equivalents to International Financial Reporting Standards – was $6,553 million. (Refer to chapter 4.0.)
  • The fair value of the loan scheme was approximately $5,464 million. (Refer to chapter 4.0.)
  • 562,000 people had a student loan with Inland Revenue for collection. (Refer to chapter 3.3.)

Since the loan scheme began:

  • Students have borrowed a total of $12,519 million. (Refer to chapter 3.2.)
  • $5,661 million has been collected in loan repayments. (Refer to chapter 3.3.)
  • More than 260,000 loans have been fully repaid. (Refer to chapter 3.3.)

During 2008/09:

  • $710.0 million in loan repayments was received by Inland Revenue and the Ministry of Social Development, $81.1 million more than last year. (Refer to chapter 5.3.)

Outcomes of the Student Loan Scheme

  • Research shows that people with tertiary qualifications have lower unemployment, higher incomes and increased wellbeing. (Refer to chapter 2.2.)

From 1994 to 2008:

  • The number of tertiary students (domestic and international) in 2007 was 460,000, compared with 252,000 domestic and international students in 1994. (Refer to chapter 2.2.)
  • Enrolments in public providers by Māori and Pasifika peoples have increased by 159 percent. (Refer to chapter 2.2.)
  • The number of people with a bachelors degree or higher qualification rose from 12 percent to 17 percent from 2003 to 2008. (Refer to chapter 2.2.)

About students borrowing from the Student Loan Scheme in 2008

  • 179,000 students (69 percent of eligible students) borrowed from the loan scheme. (Refer to chapter 3.1.)
  • Of these, there were 57,000 new borrowers (based on provisional Ministry of Social Development data), representing 32 percent of all borrowers. (Refer to chapter 3.1.)
  • The average amount borrowed was $6,953 and the median amount borrowed was $6,000. (Refer to chapter 3.2.)

Of those who accessed the loan scheme

Between 1997 and 2008:

  • About 57 percent were female. (Refer to chapter 3.3.)
  • 51 percent were European, 22 percent were Māori, 11 percent were Asian and 8 percent were Pasifika peoples. (Refer to chapter 3.3.)
  • 40 percent had studied at a university or college of education, 31 percent at a polytechnic, 24 percent at a private training establishment and 5 percent at a wānanga. (Refer to chapter 3.3.)
  • 49 percent had studied at non-degree level, 35 percent at bachelors level and 7 percent at postgraduate level. (Refer to chapter 3.3.)

As at 30 June 2009:

  • The average loan held by Inland Revenue was $16,213 and the median loan balance was $11,090. (Refer to chapter 3.3.)
  • 53 percent of borrowers will not have repayment obligations for 2009. (Refer to chapter 3.3.)
  • 15 percent of borrowers with Inland Revenue were assessed as being overseas based.

Repayment times for borrowers

  • The median repayment time for those who finished study in 1999 was forecast to be seven and a half years. (Refer to chapter 4.3.)
  • The median repayment time for those who finished study in 2003 is expected to be six years seven months. (Refer to chapter 4.3.)
  • The median repayment time for those who finished study in 2006 is expected to be seven years. (Refer to chapter 4.3.)
  • The median repayment time for those who left study in 2006 and remained in New Zealand was three years 11 months. (Refer to chapter 4.4.)

For more information about these highlights, refer to the appropriate chapter in the report.