Highlights

Student Loan Scheme Portfolio

As at 30 June 2014:

• 721,437 people had a student loan for collection. (Page 29)
• The nominal value of loan balances was $14,235 million. (Page 43)
• The carrying value of the loan scheme – calculated using International Financial Reporting Standards – was $8,716 million. (Page 43)
• The carrying value was 61.2 percent of the nominal value. (Page 30)
• The fair value of the loan scheme was approximately $8,924 million (Table 37, Page 57)
• The cost of lending increased from 40.02 cents in the dollar lent in July to December 2013, to 41.83 cents in the dollar lent in January to June 2014. (Table 28, Page 46)
• The cost of lending is forecast to reduce to 40.44 cents per dollar for the the period 1 January 2015 to 30 June 2015. It is forecast to increase to 41.59 cents for each dollar lent in 2017. (Table 28, Page 46).

Since the loan scheme began:

• 1.2 million people have taken out a student loan. (Page 22)
• Students have borrowed $20,119 million. (Page 24) – $9,157 million has been collected in loan repayments. (Page 32) – More than 415,000 loans have been fully repaid. (Page 32) During 2013/14:
• $1,031.7 million in loan repayments were received, $22.2 million less than last year. (Page 56)

Outcomes of the Student Loan Scheme

• Research shows that recent young graduates have a clear earnings advantage which emerges soon after graduation and grows over time. (Page 15)
• The number of domestic students in tertiary education in 2013 was 370,000 compared with 245,000, the number enrolled in 1994. (figure 1, Page 8)
• The participation in tertiary education rate for Māori of all ages was 14.7 percent in 2013, up slightly from 14.5 percent in 2012. The participation rate of all Pasifika students in 2013 was 11.5 percent, up slightly from 11.3 percent in 2012. (Table 1, Page 9)
• The total number of students completing formal qualifications reached 144,000 in 2013, an decrease of 0.6 percent from 2012. (Page 9)

About Students borrowing from the Student Loan Scheme in 2013

• 192,257 students (74 percent of eligible students) borrowed from the loan scheme. (Pages 22 and 23)
• Of these, there were 51,732 new borrowers representing 27 percent of all borrowers. (Table 8, Page 28)
• The average amount borrowed was $8,315. (Table 7, Page 27)

Of those who had a loan balance in 2013

• About 58 percent were female. (Table 10, Page 30)
• 57 percent were European, 22 percent were Māori, 12 percent were Asian and 11 percent were Pasifika. (Table 10, Page 30) As at 30 June 2014:
• The average loan held by Inland Revenue was $19,731 and the median loan balance was $13,882. (Table 12, Page 30)
• 73 percent of repayments were collected through the PAYE tax system in the 2013/14 year. (Page 31)

Repayment times for borrowers

• The median repayment time for all borrowers who finished study in 2011 is expected to be 7.0 years. (Table 19, Page 36)
• The median repayment time for those who left study in 2011 and remained in New Zealand is expected to be 5.8 years. (Table 19, Page 36)
• The median repayment time for those who left study in 2011 and are not always based in New Zealand is expected to be 15.2 years. (Table 19, Page 36)