Student support package for budget 2013

The Minister for Tertiary Education, Skills and Employment, Steven Joyce, has released Budget-related advice he received from officials prior to Budget 2013.

This document is being released in response to requests under the Official Information Act 1982, and because of public interest in the issues addressed by the Ministry of Education in its advice to the Government. Certain information in this document has been withheld under sections the Official Information Act 1982 as marked.

This document to the Minister for Tertiary Education, Skills and Employment was also included as part of the earlier release of tertiary education advice to the Minister of Finance and Cabinet, which includes final Cabinet papers and decisions in the release of advice to the Minister of Finance.

As this document is budget sensitive it has been made available in PDF format only. If you are unable to read it, please email tertiary.strategy@education.govt.nz

Agency Disclosure Statement

This Regulatory Impact Statement has been prepared by the Ministry of Education.

It considers options that improve the value of the student support system to the Government, while also ensuring that the Student Loan Scheme and student allowances are contributing to tertiary education priorities.

The following changes have been analysed:

  • targeting student allowances and/or loans on the basis of returns to study and on initial years of study by removing or reducing entitlement through progressive decreases based on age and/or weeks of study
  • extending the current student loan and student allowances stand-down period for permanent residents and Australians from 2 years to 3 years to increase our confidence that permanent residents will stay in New Zealand when they finish their study and repay their student loans
  • increasing repayment obligations for overseas-based borrowers to speed up repayments
  • making it an offence for a borrower to knowingly default on an overseas-based borrower repayment obligation so that an arrest warrant can be requested to prevent the most non-compliant borrowers from leaving the country from 1 July 2013
  • [Withheld under section 9(2)(f)(iv) - to maintain the current constitutional conventions protecting the confidentiality of advice tendered by ministers and officials]
  • putting in place an ongoing information-sharing agreement between Inland Revenue and Internal Affairs to obtain further contact details from overseas-based borrowers and liable parents when they renew or apply for their passport
  • [Withheld under section 9(2)(f)(iv) - to maintain the current constitutional conventions protecting the confidentiality of advice tendered by ministers and officials]

Ben O’Meara
Group Manager, Schooling Policy, Ministry of Education

22 March 2013

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