Hon Steve Maharey
Minister of Social Services and Employment

A Government $6m package of improvements to the student loans system ensured students had a trouble-free enrolment period this year, Social Services and Employment Minister Steve Maharey said today.

Mr Maharey today released statistics showing the number of students who successfully applied for a student loan this year and the processing performance levels achieved by the Department of Work and Income (DWI). Significant problems with the processing of student allowance (in 1999) and student loan (in 2000) applications badly affected students and tertiary providers.

Following consideration of an independent evaluation Cabinet agreed last October to provide a $6m package of improvements to boost staffing levels, cut waiting times on the Student Services 0800 phone line and to provide limited networked on-campus services to students at 34 campus locations nationwide.

Mr Maharey said the changes and enhancements made to the processing system had led to improved performance in all areas.

"Turning around two years of significant problems with the loans and allowances processing system was a major Government focus over the last year. National failed totally to ensure DWI was able to take on the job of processing loan applications. The new Government was forced to make a considerable investment into the system so we could be confident that it could cope.

"Following the improvements package the Department is now meeting and considerably exceeding its performance targets across all regions.

"Service to students has improved out-of-sight with 94% reporting that they are satisfied the how their loan was processed in an independent student satisfaction survey.

"Tertiary providers also benefited from considerably improved service. Tuition fee income was passed to providers on time meaning they did not suffer cash flow problems. For example the University of Auckland had received an additional $7m in fee income by the start of March 2001 than DWI had been able to process in 2000.

"DWI worked closely with an advisory group of student and tertiary provider representatives when implementing the package of improvements to the system. This partnership has been a key ingredient in securing success.

"Some further improvements to the system are planned for this year focussing on better information to students and improved technical capability," Steve Maharey said.