Goodhew Jo: Estimates Debate — In Committee 
Goodhew Jo: Estimates Debate — In Committee 
[Volume:674;Page:20426] 
JO GOODHEW (National—Rangitata) 
: 
 I look forward to pointing out the main points in the tertiary education portfolio and also speaking very briefly on student loans which are something that a number of my constituents have given me their views on. 
It is really important that in tertiary education including student loans our plan for the future is a sustainable one but we also recognise that now is the time when we need to have more students in tertiary education places. We have put in more than 3000 extra university places over 2 years. There are now 186000 core places at universities and polytechnics in 2011 despite the rhetoric from the left. There are now 11600 more core places at those institutions—universities and polytechnics—than in 2000. But it is also very very important that the Government gets value for money that it looks hard at the tertiary education spend and makes sure that it is outcomes-focused and that we do not have institutions or organisations claiming funding for educating people who are in fact dead which I understand has been happening. So my constituents are relieved to hear that we are not willy-nilly handing out their taxpayer funding without asking for the details of exactly how it is being used. 
When it comes to student loans there is a belief amongst many New Zealanders that it is a privilege. I certainly believe that too. It is a privilege for students to receive taxpayers’ money to help them through their education. Students will be the better for it and I believe they understand that. Right now we are spending $1.58 billion on student loans in 2010-11. We have had to borrow that money. We need students to understand that their responsibility is to use it wisely study their course qualify get a job and then repay that money to the people who loaned it to them—that is the taxpayers. 
Some of my constituents have been telling me that they believe that students should not be able to go overseas at all until their loan is all paid back. I have said I think that is a bit tough but nevertheless I think it is really important that we have shortened the repayment holiday for overseas borrowers to 1 year. We have also restricted borrowing for those who have had a repayment of $500-plus overdue for more than a year. We are however keeping interest-free student loans and we intend to make sure that we write off a whole lot less than the 47c in the dollar - plus that it was in 2009. It is now down to 45c in the dollar; it is improving but we still have a long way to go. It is largely the overseas borrowers—55 percent of the overdue debt is owed by 15 percent of the borrowers and they are overseas. It is a really generous scheme but it is a scheme whereby there is an obligation on students to pay back the money that will ultimately have made their lives better by improving their educational standard. 
We also require that students pass their courses; this seems like a bit of a no-brainer really does it not? Over a period of 2 years students must have passed half of their courses. We have also said that there must be a limit on how many years they can continue to receive student loans. I heard a story last night from a constituent about someone who went back for a third degree and then said they were intending to do a fourth. I think that person might be in for a bit of a shock because simply being a perpetual student and having the taxpayers funding that particular lifestyle is not what the scheme was intended for. 
The student loan scheme is a really important scheme. We have made changes that will make the student loan scheme much more sustainable thereby reducing the need for more Government borrowing to fund it. Those students who are overseas will find that we are entering into arrangements with countries to help us track them down so that they can repay their loans. There should not be arrogance amongst students who have borrowed that money or a belief that they can keep the money and not repay the loan. The taxpayers in New Zealand have loaned it.