Savings for Government in student loans

Changes over the past three budgets have helped reduce the cost to Government for student loans from 48 cents to 39 cents in the dollar. That is a significant achievement. We said we would get it down to 40 cents, and now we’ve surpassed that.

Budget 2012 forecast that student support changes would provide a one-off saving of about $250 million, and $60-$70 million of annual savings. As at 30 June 2012, the actual savings are $286 million.

This is another demonstration of National delivering on one of our key priorities of responsibly managing the Government’s finances. It also means we can reinvest in the next generation of learners.

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