Student Loan Scheme Annual Report 2010

Publication Details

The Annual Report for 2010 provides information on the scheme and those who borrowed from it in 2009, as well as the financial schedules for the fiscal year to 30 June 2010.

This year’s report is structured so that the information aligns with the outcomes framework developed by the agencies that manage and administer the scheme. Key findings in the report are:

  • The nominal value of loan balances was $11.145 billion as at 30 June 2010
  • 199,000 students borrowed from the loan scheme in 2009 (71% of eligible students)
  • As at 30 June 2010 587,500 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 6.5 years

Author(s): Ministry of Education.

Date Published: October 2010

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Highlights

Student Loan Scheme portfolio

As at 30 June 2010:

  • The nominal value of loan balances was $11,145 million. (Refer to chapter 4.0.)
  • The carrying value of the loan scheme – calculated using International Financial Reporting Standards – was $6,790 million. (Refer to chapter 4.0.)
  • The fair value of the loan scheme was approximately $6,366 million. (Refer to chapter 4.0.)
  • 587,500 people had a student loan with Inland Revenue for collection. (Refer to chapter 3.2.)

Since the loan scheme began:

  • Students have borrowed a total of $13,909 million. (Refer to chapter 3.1.)
  • $6,407 million has been collected in loan repayments. (Refer to chapter 3.3.)
  • More than 278,000 loans have been fully repaid. (Refer to chapter 3.3.)

During 2009/10:

  • $754.2 million in loan repayments was received by Inland Revenue and the Ministry of Social Development, $44.2 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.)
  • The proportion of the population aged 15 or over with a tertiary qualification rose from 47 percent in 2003 to 50 percent in 2009. (Refer to chapter 1.1.)

Between 1994 and 2009:

  • The number of tertiary students (domestic and international) increased to 469,000, compared with 252,000 domestic and international students. (Refer to chapter 1.1.)
  • Enrolments in public providers by Māori and Pasifika peoples have increased by 156 percent and 204 percent respectively. (Refer to chapter 1.1.)

About students borrowing from the Student Loan Scheme in 2009

  • 199,000 students (71 percent of eligible students) borrowed from the loan scheme. (Refer to chapter 3.1.)
  • Of these, there were 64,200 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 $6,991 and the median amount borrowed was $6,101. (Refer to chapter 3.1.)

Of those who accessed the loan scheme

Between 1997 and 2009:

  • About 57 percent were female. (Refer to chapter 3.2.)
  • 50 percent were European, 22 percent were Māori, 12 percent were Asian and 8 percent were Pasifika peoples.
    (Refer to chapter 3.2.)
  • 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 3.2.)
  • 49 percent had studied at non-degree level, 35 percent at bachelors level and 8 percent at postgraduate level.
    (Refer to chapter 3.2.)

As at 30 June 2010:

  • The average loan held by Inland Revenue was $16,731 and the median loan balance was $11,399. (Refer to chapter 3.2.)
  • 52 percent of borrowers did not have repayment obligations for the 2009 tax year. (Refer to chapter 3.3.)
  • 12 percent of repayments made for the 2009 tax year were by borrowers with no repayment obligations. (Refer to chapter 3.3.)

Repayment times for borrowers

  • The median repayment time for those who finished study in 1999 was 7.2 years. (Refer to chapter 3.3.)
  • The median repayment time for those who finished study in 2003 is expected to be 6.5 years. (Refer to chapter 3.3.)
  • The median repayment time for those who finished study in 2006 is expected to be 6.5 years. (Refer to chapter 3.3.)
  • The median repayment time for those who left study in 2006 and have remained in New Zealand is forecast to be 4.6 years. (Refer to chapter 3.3.)

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