Student Loan Scheme Annual Report 2011

Publication Details

The Annual Report for 2011 provides information on the scheme and those who borrowed from it in 2010, as well as the financial schedules for the fiscal year to 30 June 2011. 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 $12.1 billion as at 30 June 2011.
  • 212,000 students borrowed from the loan scheme in 2010 (74 percent of eligible students).
  • As at 30 June 2011, 621,000 people had a student loan with Inland Revenue for collection.
  • The median repayment time for those who left study in 2006 and remain in New Zealand was 5.2 years.

Author(s): Ministry of Education.

Date Published: October 2011

Highlights

As at 30 June 2011:

  • The nominal value of loan balances was $12,070 million. (Refer to chapter 4.0.)
  • The carrying value of the loan scheme - calculated using International Financing Reporting Standards - was $7,459 million. (Refer to chapter 4.0.)
  • The carrying value ratio increased from 60.9 percent of the nominal value to 61.8 percent of the nominal value ratio. (Refer to chapter 4.0.)
  • The fair value of the loan scheme was approximately $7,221 million. (Refer to chapter 4.0.)
  • The amount of write down shifted from 45.3 cents in the dollar lent in 2010 to 44.7 cents in the dollar let in 2011. (Refer to chapter 4.2.)
  • 621,000 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 $15,486 million. (Refer to chapter 3.1.)
  • $7,098 million has been collected in loan repayments. (Refer to chapter 3.3.)
  • More than 306,000 loans have been fully repaid. (Refer to chapter 3.3.)

During 2010/11:

  • $801.5 million in loan repayments was received by Inland Revenue and the Ministry of Social Development, $47.3 million more than last year. (Refer to chapter 5.3)
  • Research shows that people with tertiary qualifications have lower unemployment, higher incomes and increased wellbeing. (Refer to chapter 2.2.)
  • The  number of domestic students in tertiary education in 2010 was 420,000 compared with 245,000, the number enrolled in 1994. (Refer to chapter 1.1.)
  • The participation rate for Māori of all ages was 19 percent in 2010, up slightly from 2008.  The participation rate of all Pasifika students in 2010 was 16 percent, up from 15 percent in 2008. (Refer to chapter 1.1.)
  • The total number of students completing formal qualifications reached 117,000 in 2010, an increase of 10 percent from 2008. (Refer to chapter 1.1.) 
  • 212,485 students (74 percent of eligible students) borrowed from the loan scheme. (Refer to chapter 3.1)
  • Of these 63,535 were new borrowers (based on provisional Ministry of Social Development data), representing 30 percent of all borrowers. (Refer to chapter 3.1.)
  • The average amount borrowed was $7,298 and the median amount borrowed was $6,375. (Refer to chapter 3.1.)

Between 1997 and 2010:

  • About 56 percent were female. (Refer to chapter 3.2.)
  • 49 percent were European, 22 percent were Māori, 11 percent were Asian and 9 percent were Pasifika. (Refer to chapter 3.2.)
  • 35 percent had studied at a university or college of education, 33 percent at a polytechnic, 27 percent at a private training establishment and 5 percent at a wānanga. (Refer to chapter 3.2.)
  • 53 percent had studied at a non-degree level, 29 percent at a bachelors level and 7 percent at a postgraduate level. (Refer to chapter 3.2.)

As at 30 June 2011:

  • The average loan held by Inland Revenue was $17,276 and the median loan balance was $11,880. (Refer to chapter 3.2.)
  • 71 percent of repayments were collected through the PAYE tax system in the 2010/11 tax year. (Refer to chapter 3.3.)
  • 13 percent of repayments made for the 2009/10 tax year were by borrowers with no repayment obligation. (Refer to chapter 3.3.)
  • The median repayment time for those who finished study in 1999 was 7.6 years. (Refer to chapter 3.4.)
  • The median repayment time for those who finished study in 2003 is expected to be 6.6 years. (Refer to chapter 3.4.)
  • The median repayment time for those who finished study in 2006 is expected to by 6.7 years. (Refer to chapter 3.4.)
  • The median repayment time for those who left study in 2006 and remained in New Zealand was 5.2 years. (Refer to chapter 3.4.)