O'Connor Simon: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
O'Connor Simon: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 04 December 2012. Volume:686;Page:6999. Text is incorporated into the Bound Volume.] 
5. 
SIMON O’CONNOR (National—Tamaki) 
 to the  
Minister for Tertiary Education Skills and Employment 
: What progress has the Government made to improve the viability of the Student Loan Scheme? 
Hon STEVEN JOYCE (Minister for Tertiary Education Skills and Employment) 
: 
 The Government is making very good progress. The latest student loan scheme annual report shows the overall cost of lending has fallen by 17.5 percent over the last 3 years. The cost has fallen from 47c per dollar in 2009 to 39c in the dollar in 2012 and the report projects it to drop to 37c in the dollar next year. That is a significant improvement but one we are working to improve further. The Government remains committed to interest-free student loans but it is important that the scheme is affordable long term for students and for taxpayers and sustainable for the country. 
Simon O’Connor 
: What progress is the Government making to get students debt-free faster? 
Hon STEVEN JOYCE 
: I am happy to report an 11 percent increase in student loan repayments in 2011-12 to $767 million which is up from $691 million in 2010-11. Further the median repayment time for those who left study in 2008 is 6.7 years which compares with 7.4 years for those who left study in 2003. For 2008 leavers who remain in New Zealand the median repayment time is down to 5.5 years. Through Inland Revenue we are also targeting overseas-based borrowers who are not meeting their repayment obligations. To date we have gained back just under $20 million through the latest campaign which accounts for $12 for every dollar spent on the project. Those gains have freed up money for reinvesting in quality tertiary education provision and enabling the Government to improve our overall fiscal position. 
Simon O’Connor 
: How is the Government ensuring students are in the best position to repay their loans? 
Hon STEVEN JOYCE 
: As part of our changes to tighten the student loan scheme the Government has moved to ensure that student loans are used effectively by people to obtain qualifications that enable them to earn enough to pay their loan back and contribute to this country. This has coincided with a continuing uptrend in performance. Course completion rates have risen from 77 percent in 2009 to 82 percent last year while qualification completion rates over the same period have increased from 62 to 71 percent. It shows the tertiary sector is responding well to our signals to focus on performance and deliver better value for taxpayers’ money. 
Grant Robertson 
: In light of that answer what does he say to the 55-year-old woman who came to my electorate office having lost her job and who is wanting to retrain but is unable to do so because he and his Government have taken away the eligibility for people aged over 55 to borrow the living costs of their loan or does he not think she has got a contribution to make to New Zealand’s economy? 
Hon STEVEN JOYCE 
: Actually that person over the age of 55 can continue to borrow from the student loan scheme for their course fees—that is correct. 
Grant Robertson 
: But not for living costs. 
Hon STEVEN JOYCE 
: Not for their living costs—that is correct. Of course somebody who has lost their job and is unable to get a job is able to qualify for welfare support but they can do student borrowing through the student loan scheme for their fees.