The Government says new legislation will help people with student loans to manage their accounts online and communicate more easily with the Inland Revenue Department.
However, it will be April 2012 before borrowers will be able to make use of the online facility.
The Student Loan Scheme Bill also removes end-of-year assessments for borrowers whose income only comes from wages or salary, and whose before-tax income is over the repayment threshold.
That reconcilation can mean people end up with a bill, even if they have paid all of the required instalments throughout the year - but they can also end up with a credit.
Mr Dunne says this assessment will now be scrapped and loan deductions paid through the year will be considered correct and final.
There are also changes to the penalty system for late or non-payments.
Mr Dunne says these are aimed at at simplifying the current system and should mean that borrowers' debts do not mount up so quickly.