Student Loans
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Overview
The Student Loan Scheme was introduced in 1992 to assist students studying at tertiary level. The purpose of the scheme is to ensure that the costs of study are not a barrier to students undertaking tertiary study.
Further information on use of the Student Loans Scheme is available from the Student Loan Scheme Annual Report published by the Ministry of Education. This report contains information on use of the Student Loan scheme which is supplied by the Ministry of Education, StudyLink and Inland Revenue.
Eligibility for Student Loans
Student Loans are available to people who are:
- New Zealand citizens, permanent residents or refugees
- enrolled on a tertiary course approved by the Ministry of Education that is recognised by the Tertiary Education Commission for Student Loan purposes and:
- full-time or approved limited full-time
- part-time and 32 weeks or longer
- Part-time and less than 32 weeks, with a course load of 0.3 Full Time Study (EFTS) or more, or
- part-time for part of the year with a course load between 0.25 and 0.3 EFTS.
To receive Student Loan living costs, students must be enrolled in a full-time or approved limited full-time course. Students enrolled on courses that are part-time and 32 weeks or longer may receive a loan for fees and course-related costs only. Students enrolled on courses that are part-time and less than 32 weeks can only receive a Student Loan for fees. Full-time students can receive a loan for course fees, course-related costs, and living costs to a maximum of $150 per week. If a student or their partner receives a Student Allowance of $150 a week or more after tax, they may receive a Student Loan only for compulsory fees and course-related costs. This is because the living cost component of a Student Loan is reduced by the amount of Student Allowance received.
People who are currently bankrupt or who are on a course already paid for by the Government (such as Training Opportunities) are not eligible to receive a Student Loan. People involved in the No Asset Procedure or subject to a Summary Instalment Order are, however, eligible to receive a Student Loan.
Prisoners are eligible to access Student Loans for compulsory fees and course-related costs, subject to the agreement of the prison authority. Prisoners are not able to receive living costs unless they are on home detention.
Accessibility of funds through Student Loans
Limits have been established that prescribe maximum drawings that students may make from their Student Loan (see table 6.4).
Table 6.4 Maximum amount available for Student Loans, by component (applicable over the 2007 academic year)
| Component of Student Loan | Maximum amounts available |
|---|---|
| Course fees (annual)1 | Total fee cost |
| Course-related expenses (annual)2 | $1,000.00 |
| Living costs (weekly)3 | $150.00 |
Notes
- Payment of fees is reduced by any Training Incentive Allowance (available to some core benefit recipients) that is provided to pay fees.
- Payment of course-related expenses is reduced by some of the Training Incentive Allowance (available to some core benefit recipients) that is provided to pay course-related expenses.
- Payment of living costs is restricted to periods when the student is studying full-time and is reduced by any Student Allowance payments received.
Trends in the number of students making drawings against Student Loans
This page shows information about students making drawings against Student Loans during the calendar years (ended 31 December) indicated. It excludes information about drawings made against Student Loans in earlier calendar years, and therefore doesn't show the total levels of debt that students have accumulated through the Student Loan Scheme.
The number of students making drawings against Student Loans increased between 2005 and 2007, following a decrease in the previous year (see table 6.5).
Between 2003 and 2007, the proportion of students making drawings against Student Loans who:
- drew a total of less than $10,000 in the calendar year decreased from 82% to 76% (see table 6.5). Note that this change is very likely to result from normal inflation
- were receiving a Student Allowance decreased from 33% to 29% (see table 6.6).
The proportion of students making drawings against Student Loans who were attending a university rose from 49% to 53% between 2006 and 2007 (see table 6.7).
Table 6.5 Trends in the annual amount per student drawn against Student Loans
Amount drawn against student loan in the year ended 31 December |
Students making drawings against Student Loans1 | ||||
|---|---|---|---|---|---|
| 2003 Number | 2004 Number | 2005 Number | 2006 Number | 2007 Number | |
| Under $5,000 | 70,428 | 70,233 | 67,095 | 68,302 | 66,813 |
| $5,000-$9,999 | 57,143 | 56,975 | 55,573 | 61,536 | 64,962 |
| $10,000-$14,999 | 26,089 | 27,539 | 28,815 | 33,419 | 37,567 |
| $15,000-$19,999 | 1,515 | 1,507 | 1,937 | 2,720 | 3,149 |
| $20,000-$29,999 | 407 | 428 | 537 | 905 | 736 |
| $30,000-$39,999 | 142 | 115 | 153 | 212 | 220 |
| $40,000-$49,999 | 116 | 89 | 135 | 139 | 133 |
| $50,000 or over | 410 | 146 | 166 | 187 | 211 |
| Total | 156,250 | 157,032 | 154,411 | 167,420 | 173,791 |
Note
- Numbers of students recorded as making drawings against Student Loans during years ended 31 December.
Table 6.6 Trends in the type of Student Allowances received by students making drawings against Student Loans
| Type of Student Allowance received when drawing made against student loan | Students making drawings against Student Loans1 | ||||
|---|---|---|---|---|---|
| 2003 Number | 2004 Number | 2005 Number | 2006 Number | 2007 Number | |
| Single 16-24 years - targeted away from home | 13,861 | 12,487 | 14,989 | 16,497 | 18,436 |
| Single 16-24 years - targeted at home | 7,362 | 6,817 | 7,489 | 8,868 | 10,052 |
| Single 25+ years - targeted away from home | 13,553 | 13,084 | 12,154 | 12,307 | 11,899 |
| Single 25+ years - targeted at home | 1,555 | 1,480 | 1,407 | 1,521 | 1,577 |
| Couple allowance - both students, no children | 758 | 917 | 107 | 103 | 78 |
| Couple allowance - both students2 | 0 | 0 | 1,122 | 1,326 | 1,224 |
| Couple allowance - dependent spouse, no children | 0 | 0 | 3,715 | 4,045 | 3,684 |
| Couple allowance - dependent spouse2 | 1,320 | 1,330 | 63 | 2 | |
| Single student with dependent children | 1,589 | 1,449 | 1,254 | 1,289 | 1,227 |
| Couples - both students with dependent children | 641 | 694 | 34 | 0 | 1 |
| Couples - one student with dependent children2 | 0 | 0 | 136 | 137 | 128 |
| Couples - dependent spouse with dependent children | 3,259 | 2,998 | 96 | 2 | 1 |
| Student in independent circumstances | 6,648 | 6,590 | 1,993 | 1,915 | 1,745 |
| Earning spouse - at home | 933 | 953 | 807 | 1,012 | 995 |
| Earning spouse - away from home | 99 | 91 | 65 | 67 | 77 |
| Not receiving any Student Allowance | 104,672 | 108,142 | 108,980 | 118,329 | 122,667 |
| Total | 156,250 | 157,032 | 154,411 | 167,420 | 173,791 |
Notes
- Numbers of students recorded as making drawings against Student Loans during years ended 31 December.
- New allowance types in the year ended 31 December 2005.
Table 6.7 Trends in the type of institutions attended by students making drawings against Student Loans
| Type of institution attended when drawing made against Student Loan | Students making drawings against Student Loans1 | ||||
|---|---|---|---|---|---|
| 2003 Number | 2004 Number | 2005 Number | 2006 Number | 2007 Number | |
| College of Education | 5,559 | 5,314 | 2,483 | 2,391 | 0 |
| Polytechnic | 41,727 | 40,013 | 37,243 | 39,041 | 40,415 |
| Private Training Establishment | 27,485 | 28,459 | 30,633 | 36,256 | 35,270 |
| University | 73,774 | 74,671 | 76,163 | 82,727 | 91,402 |
| Wananga | 4,559 | 4,587 | 4,466 | 3,544 | 3,477 |
| Polytechnic and University | 929 | 1,192 | 1,050 | 1,043 | 1,112 |
| Polytechnic and other institution(s)2 | 1,124 | 1,278 | 1,001 | 1,029 | 979 |
| University and other institution(s)2 | 846 | 1,206 | 1,098 | 1,160 | 940 |
| Polytechnic, university and other institution(s)2 | 34 | 51 | 46 | 46 | 49 |
| Miscellaneous combination2 | 202 | 255 | 226 | 183 | 147 |
| Unknown | 11 | 6 | 2 | 0 | 0 |
| Total | 156,250 | 157,032 | 154,411 | 167,420 | 173,791 |
Notes
- Numbers of students recorded as making drawings against Student Loans during years ended 31 December.
- Students may enrol to study at more than one institution at the same time. In these cases, table 6.7 shows all types of institutions where students were enrolled at the time of making a drawing against a Student Loan.
Trends in the purpose of drawings against Student Loans
Please note that the numbers of students making drawings against each component of their Student Loan don't add to the total number of students making one or more drawings shown in table 6.5, table 6.6 and table 6.7 above. This is because most students make drawings against more than one Student Loan component (eg course fees and living costs) during the same academic year.
The number of students making drawings for each purpose increased in 2007 (see table 6.8), reflecting increases in the total number of students making drawings against Student Loans. These changes may be the result of the removal of interest charges from most student loans from 1 April 2006.
Table 6.8 Trends in the number of drawings made against Student Loan components
| Student Loan component | Number of students making drawings against Student Loan components1 | ||||
|---|---|---|---|---|---|
| 2003 Number | 2004 Number | 2005 Number | 2006 Number | 2007 Number | |
| Course fees | 144,678 | 145,549 | 143,406 | 156,236 | 160,855 |
| Course-related costs | 101,664 | 98,506 | 94,782 | 103,553 | 103,651 |
| Living expenses | 79,373 | 77,507 | 73,668 | 80,921 | 87,175 |
Note
- Numbers of students making drawings against Student Loan components during years ended 31 December.
