Government looks to recover student loan administration costs

The Government is looking to recover more of the $40 million it costs to administer the interest-free student loan scheme every year.

We’re considering extending the annual administration fee to all those with a student loan. Currently, only $10 million is recovered through the annual $50 charge, from students who are drawing a loan. That charge has not been changed since 1992.

Once borrowers leave tertiary education, they do not pay any part of the administration costs. It is only fair that borrowers who receive the benefit of interest-free loans cover more of the actual costs of loan administration, so more people can take part in tertiary education.

For more information visit:
http://beehive.govt.nz/release/govt+investigating+recovery+student+loan+administration+costs