9 May 2013

Increased repayments of student loans

7:27 pm on 9 May 2013

The Government says there has been a big jump in student loan repayments, but it wants to get even more money from borrowers now living overseas.

In the year to March, borrowers repaid $812 million, some $263 million more than at the same time last year.

The Government has been trying to speed up repayments because of the cost of providing the loans interest free and last year increased the rate of repayment from ten to 12 cents per dollar owed.

It says some of the increase reported on Thursday will have been due to people trying to make the most of a repayment bonus programme before it finished at the end of March.

The Government says it will soon announce new initiatives aimed at recovering loans from overseas-based borrowers.