Executive summary

• Tertiary education policy since 1990 has required students as private beneficiaries to pay more of the costs of their education. Weighted average university fees increased 961% over 1990 – 1995 (in 1999 dollars).
• In 1998/99 about half (49.7%) of tertiary students had student loans, up from 39.6% in 1994.
• The average cumulative debt under the student loan scheme in 1999 was $11,700, and 7% of those with loans had debts over $30,000.
• Compared to other OECD countries Government funding of tertiary education per student and as a percentage of GDP is about average, and well above average for the proportion of funding in loans.
• The interest rate charged for New Zealand student loans is considerably higher than in other income-contingent student loan schemes overseas, but comparable to mortgage-type loan schemes.