The number of people using the student loan scheme has jumped – and so has the amount they are borrowing.
By John Gerritsen of RNZ
An Education Ministry report to Tertiary Education Minister Penny Simmonds said 126,696 people borrowed from the loan scheme in the first three months of the year, 12% more than in the first quarter last year.
In total, they borrowed $1.145 billion, 19% or $184 million more than the same period in 2025.
The report said the number of students borrowing for fees increased 13% while the numbers borrowing for course-related costs and for living costs increased 11 and 10% respectively.
However, the amounts they borrowed increased by even larger percentages.
The total borrowed for fees was up 20% or $162m over the same period last year, living costs borrowing jumped 19%, and borrowing for course-related costs by 11 percent.
The report said the trend for more borrowers began in 2024.
"This increase in borrowers began during the April to June 2024 quarter and goes against a previous long-term trend of declining active borrower numbers," the report said.
"The continued increase in borrower numbers is likely to have been strongly influenced by the performance of the economy, and subsequent slowing of the labour market. Generally we expect more people to choose to enter or remain in study when there are fewer employment options available to them."
The report said the number of borrowers with overdue payments dropped 4% compared to the same time last year and most, 75%, were overseas-based borrowers.
"As at March 31, the total overdue amount is $2.7b. Over 46% ($1.2b) of the total debt is penalties and interest, with $1.1b of those penalties owed by overseas-based borrowers."
The report said 37,500 people received student allowances, 8% more than last year.
SHARE ME