SECTION TWO: SPECIFIC MATTERS
- Origins and Their Continuing Effect
- Funding
- Maori Issues
- Key Performance Indicators
- Student Loans
E. STUDENT LOANS
10.1 The issue of Student Loans has been a high profile one since this review was established. The Terms of Reference for the review do not specifically refer to it but there is no doubt the handling of student allowances and loans bear directly on the perceptions of the organisation's success or failure.
10.2 We have received a number of submissions about the student loan process and members of the review team have been contacted by students, parents and others expressing strong concern about what they have experienced or what they perceive to be a failure in the system and the management in DWI.
10.3 We have become aware that the Minister of Social Services has approved Terms of Reference to the Ministry of Social Policy requiring that Ministry, as part of its monitoring function, to undertake an evaluation of the processing by DWI of student loan applications. The MSP review will be required to identify and clarify delivery problems involving student loans and the extent to which students were affected; identify issues that contributed to delivery problems regarding loans, including delivery of student allowances; and to recommend solutions to the problems to ensure that in the future the processing and management of student loan applications is efficient and timely.
10.4 In light of this parallel MSP exercise, we think it would confuse the issue if this review also commented at length on the issue of student loans processing and management. The information we have obtained and the submissions made to us will be made available to MSP to be incorporated in their findings and recommendations. It should be noted, however, that problems with student allowances, similar to those with student loans, were encountered when that responsibility was added to DWI's functions in 1998. At a subsequent hearing of the Social Services Select Committee, DWI gave assurances to Parliament that the experience with student allowances would assist DWI in coping with any problems anticipated with student loans. Following the evident implementation problems with Student Loans (the accountability for which has yet to be established) the Social Services Select Committee has recorded, at its Financial Review hearing in March, its strong views and serious concerns. DWI has been given notice that Parliament will be evaluating the programme again in twelve months' time. Parliament will then assess whether DWI's success in ironing out the initial difficulties with student allowances can be repeated with student loans. DWI is in no doubt, therefore, that Parliament expects a substantial improvement in this area.
