Publication Details

The Student Loans Scheme Annual Report 2013 provides information on the scheme and those who borrowed from it in 2012, as well as the financial schedules for the year to 30 June 2013. The information in the report 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 $13,562 million as at 30 June 2013.
• 201,187 students borrowed from the loan scheme in 2012 (73 percent of eligible students).
• As at 30 June 2013, 710,000 people had a student loan with Inland Revenue.
• The median repayment time for those who left study in 2009 and remained in New Zealand was 6.7 years.

Author(s): Ministry of Education.

Date Published: December 2013



This report is available as a download (please refer to the 'Downloads' inset box).  For links to related publications/ information that may be of interest please refer to the 'Where to Find Out More' inset box.

Highlights

Student Loan Scheme portfolio

As at 30 June 2013:

• The nominal value of loan balances was $13,562 million. (Refer to chapter 4.0.)
• The carrying value of the loan scheme - calculated using International Financing Reporting Standards - was $8,288 million. (Refer to chapter 4.0.)
• The carrying value ratio increased from 63.9 percent of the nominal value to 61.1 percent of the nominal value ratio. (Refer to chapter 4.1.)
• The fair value of the loan scheme was approximately $8,298 million. (Refer to chapter 4.0.)
• The cost of lending is forecast to increase to 40 cents per dollar for the period 1 July 2013 to 31 December 2013. It is forecast to increase to 42 cents for each dollar lent by 2016/17. (Refer to chapter 4.2)
• 710,968 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 $18,520 million. (Refer to chapter 3.1.)
• $8,125 million has been collected in loan repayments. (Refer to chapter 3.3.)
• More than 374,000 loans have been fully repaid. (Refer to chapter 3.3.)
  


During 2012/13:

• $1,150.7 million in loan repayments was received by Inland Revenue and the Ministry of Social Development, $274.2 million more than last year. (Refer to chapter 5.3)

Outcomes

• 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 2012 was 375,000 compared with 245,000, the number enrolled in 1994. (Refer to chapter 1.1.)
• The participation rate for Māori of all ages was 14.6 percent in 2012, down from 15.1 percent in 2011.  The participation rate of Pasifika students in 2012 was 11.4 percent, down from 11.5 percent in 2011. (Refer to chapter 1.1.)
• The total number of qualifications completed in 2012 was 143,000 by 126,000 domestic students, an increase of 2.7 percent from 2011. (Refer to chapter 1.1.) 
• The total number of qualifications completed in the New Zealand tertiary system in 2012 was 162,000. (Refer to chapter 1.1.)

About borrowing in 2012

• 201,187 students (73 percent of eligible students) borrowed from the loan scheme. (Refer to chapter 3.1)
• Of these 54,836 were new borrowers (based on provisional Ministry of Social Development data), representing 27 percent of all borrowers. (Refer to chapter 3.1.)
• The average amount borrowed was $7,822 and the median amount borrowed was $6,9889. (Refer to chapter 3.1.)

Borrowers

Between 1997 and 2012:

• 57 percent were female. (Refer to chapter 3.2.)
• 48 percent were European, 22 percent were Māori, 12 percent were Asian and 9 percent were Pasifika. (Refer to chapter 3.2.)
• 47 percent had studied at non-degree level, 35 percent at bachelors level and 9 percent at postgraduate level. (Refer to chapter 3.2.)


As at 30 June 2013:

• The average loan held by Inland Revenue was $19,076 and the median loan balance was $13,307. (Refer to chapter 3.2.)
• 57 percent of repayments were collected through the PAYE tax system in the 2012/13 tax year. (Refer to chapter 3.3.)

Repayment times

• The median repayment time for those who finished study in 2003 was 7.2 years. (Refer to chapter 3.4.)
• The median repayment time for those who finished study in 2006 is expected to be 7.5 years. (Refer to chapter 3.4.)
• The median repayment time for those who finished study in 2009 is expected to by 7.3 years. (Refer to chapter 3.4.)
• The median repayment time for those who left study in 2009 and remained in New Zealand was 6.7 years. (Refer to chapter 3.4.)


For more information about these highlights, refer to inset box on the right and download the full report and refer to the appropriate chapter.