Student Loan Statistics New Zealand 2025 - Understanding the $16.19 Billion Owed
618,798 New Zealanders owe $16.19 billion in student loans, but 114,000+ New Zealanders living overseas owe $4.3 billion - and 76% of them aren't paying them back. We break down the official IRD data and explain what you need to know.
Updated 31 December 2025
Key Findings
The Bigger Picture
To help explain what you need to know, our guide covers:
Data source: All data is sourced from the Inland Revenue (IRD):
- Total borrowers: 618,798 - down from a peak of 727,444 in 2017
- Total student loan balance: $16.19 billion - as at September 2025
- Median loan balance: $17,529 - up from $13,358 in 2013
- Average loan balance: $26,168 (total balance ÷ borrowers)
- New Zealand-based borrowers: 504,738 (82%) - owing $11.85 billion
- Overseas-based borrowers: 114,060 (18%) - owing $4.34 billion
- Overdue debt: $2.57 billion - 93% of this is owed by overseas borrowers
- New Zealand-based compliance: 95.4% - we believe this high compliance rate (and data trend) proves the system works domestically
- Overseas-based compliance: 23.6% - only 1 in 4 are paying their student loan back, as discussed below
The Bigger Picture
- The overseas borrower crisis is real: 114,060 Kiwis overseas owe $4.34 billion, but only 23.6% are meeting their repayment obligations. $2.39 billion is overdue from overseas borrowers alone - we believe this is taxpayer money unlikely to be recovered.
- Borrower numbers are falling: From 727,444 (2017) to 618,798 (2025) - a 15% drop.
- But total debt has stayed flat: around $16 billion over the past 5 years. As old loans are repaid, new loans are issued.
- Median debt owed has grown 31%: From $13,358 (2013) to $17,529 (2025) - reflecting rising course fees and living costs
To help explain what you need to know, our guide covers:
- Current Student Loan Snapshot (September 2025)
- Understanding Student Loan Repayments - ~$1.6 Billion Per Year
- Understanding the Overseas Borrower Crisis - $2.39 Billion Unpaid
- How Much Students Owe - Median Balance Trends
- Frequently Asked Questions
Data source: All data is sourced from the Inland Revenue (IRD):
- Student Loan Statistics - quarterly release which covers borrowers, balances, repayments, compliance, and overdue debt
- Data current as of September 2025
- Important: This data covers the Student Loan Scheme administered by the IRD. It does not include non-government-issued student and education loans or other study-related debt.
Current Student Loan Snapshot (September 2025)
The table below shows the current state of student loans in New Zealand, based on the latest IRD data.
Know This: Overseas borrowers are 18% of all borrowers but hold 27% of all debt and owe 93% of all overdue repayments. The average overseas borrower owes $38,049 - 62% more than the average New Zealand-based borrower ($23,478). This is partly because overseas borrowers accrue interest at ~5% (per the latest IRD numbers) while New Zealand-based borrowers pay 0%.
Know This: Overseas borrowers are 18% of all borrowers but hold 27% of all debt and owe 93% of all overdue repayments. The average overseas borrower owes $38,049 - 62% more than the average New Zealand-based borrower ($23,478). This is partly because overseas borrowers accrue interest at ~5% (per the latest IRD numbers) while New Zealand-based borrowers pay 0%.
| Metric | NZ-Based | Overseas | Total |
|---|---|---|---|
| Borrowers | 504,738 | 114,060 | 618,798 |
| Share of borrowers | 82% | 18% | 100% |
| Total balance | $11.85B | $4.34B | $16.19B |
| Share of balance | 73% | 27% | 100% |
| Average balance | $23,478 | $38,049 | $26,168 |
| Meeting obligations | 95.4% | 23.6% | 82.2% |
| Overdue borrowers | 23,283 | 87,086 | 110,369 |
| Overdue amount | $181m | $2.39B | $2.57B |
Averages, Compliance and Annual Repayments
| Metric | Value | What It Means |
|---|---|---|
| Total borrowers | 618,798 | Down from 727,444 peak in 2017 |
| Total balance | $16.19 billion | Stable for ~5 years |
| Median balance | $17,529 | Up 31% since 2013 |
| Average balance | $26,168 | Total balance ÷ borrowers |
| NZ-based compliance | 95.4% | The system works domestically |
| Overseas compliance | 23.6% | Only 1 in 4 are paying |
| Overdue debt | $2.57 billion | 93% owed by overseas borrowers |
| Annual repayments | ~$1.64 billion | ~$410m per quarter |
How Student Loan Borrowers Have Changed (2013-2025)
The number of borrowers has been falling since 2017, while total debt has stayed relatively flat. Borrower numbers peaked at 727,444 in 2017 and have fallen 15% to 618,798.
Total debt has stayed around $16B - this means fewer people are carrying more debt each. The average balance has grown from $19,216 (2013) to $26,168 (2025), a 36% increase, which is reasonable given increases in living costs and higher course fees, etc.
Total debt has stayed around $16B - this means fewer people are carrying more debt each. The average balance has grown from $19,216 (2013) to $26,168 (2025), a 36% increase, which is reasonable given increases in living costs and higher course fees, etc.
| Year | Total Borrowers | NZ-Based | Overseas | Total Balance | Median Balance |
|---|---|---|---|---|---|
| 2013 | 708,077 | 599,774 | 108,303 | $13.60B | $13,358 |
| 2015 | 724,487 | 613,637 | 110,850 | $14.83B | $14,430 |
| 2017 | 727,444 | 617,344 | 110,100 | $15.68B | $15,227 |
| 2019 | 702,684 | 593,636 | 109,048 | $15.98B | $16,067 |
| 2021 | 671,760 | 568,240 | 103,520 | $16.14B | $16,821 |
| 2023 | 626,811 | 520,190 | 106,621 | $15.81B | $17,543 |
| 2025 | 618,798 | 504,738 | 114,060 | $16.19B | $17,529 |
Understanding Student Loan Repayments - ~$1.6 Billion Per Year
Each year, approximately $1.6 billion is repaid on student loans - about $400 million per quarter. Most comes from automatic employer deductions.
Our View: The system works because of employer deductions - 66% of repayments come through PAYE. Without automatic deductions, compliance would likely be far lower. This is why overseas borrowers (who do not have automatic deductions) have such poor repayment rates.
Our View: The system works because of employer deductions - 66% of repayments come through PAYE. Without automatic deductions, compliance would likely be far lower. This is why overseas borrowers (who do not have automatic deductions) have such poor repayment rates.
| Repayment Source | Quarterly Amount | Notes |
|---|---|---|
| Employer deductions (PAYE) | ~$271m | Automatic, NZ-based only |
| Direct from NZ borrowers | ~$56m | Voluntary payments |
| Direct from overseas borrowers | ~$83m | When they pay at all |
| Total quarterly repayments | ~$410m | ~$1.64B annually |
Understanding the Overseas Borrower Crisis - $2.39 Billion Unpaid
This is the story the data tells - New Zealand's student loan scheme works well domestically, but it has a serious problem with Kiwis who move overseas.
Our View: In 2013, 41.5% of overseas borrowers were paying. In 2025, it's 23.6%. Compliance has nearly halved over the past 12 years. The balance owed by overseas borrowers has grown from $2.94B to $4.34B (+48%), while their numbers have only grown 5%. There is compound interest on unpaid debt, as the IRD outlines in their guidance, and the loans are growing faster than they're being repaid.
Why Overseas Borrowers Don't Pay
Our View: In 2013, 41.5% of overseas borrowers were paying. In 2025, it's 23.6%. Compliance has nearly halved over the past 12 years. The balance owed by overseas borrowers has grown from $2.94B to $4.34B (+48%), while their numbers have only grown 5%. There is compound interest on unpaid debt, as the IRD outlines in their guidance, and the loans are growing faster than they're being repaid.
Why Overseas Borrowers Don't Pay
- Interest accrues at ~5%: Unlike New Zealand-based borrowers (0% interest), overseas borrowers are charged interest. If they don't pay, their debt grows.
- No automatic deductions: New Zealand employers deduct repayments from wages - anyone with a student loan has a dedicated tax code. Overseas employers don't make any deductions - it's up to the borrower to pay voluntarily.
- Limited enforcement: We understand that the IRD has a limited ability to collect from people living in other countries. Arrest-at-the-border cases have made headlines, such as this case shared on Reddit, but given the distressed debt levels, it has been hard for the IRD make significant inroads into collections.
- Out of sight, out of mind: Many New Zealanders overseas likely ignore the debt, especially if they don't plan to return.
| Year | Overseas Borrowers | Overseas Balance | Compliance Rate | Trend |
|---|---|---|---|---|
| 2013 | 108,303 | $2.94B | 41.5% | -- |
| 2015 | 110,850 | $3.18B | 28.6% | ↓ |
| 2017 | 110,100 | $3.35B | 31.9% | ↔ |
| 2019 | 109,048 | $3.47B | 33.0% | ↔ |
| 2021 | 103,520 | $3.43B | 26.3% | ↓ |
| 2023 | 106,621 | $3.82B | 29.7% | ↔ |
| 2025 | 114,060 | $4.34B | 23.6% | ↓↓ |
Overdue Student Loan Debt: $2.57 Billion
A significant portion of student loan debt is overdue - meaning borrowers have missed required payments. The student loan scheme is essentially two different systems with vastly different outcomes. The table below shows the stark contrast.
Know This: The average overdue overseas borrower owes $27,445 in missed payments.
Know This: The average overdue overseas borrower owes $27,445 in missed payments.
- With interest compounding at ~5% annually, this grows by ~$1,370 per year even without any new borrowing. Many of these debts will never be recovered - they're effectively written off unless the borrower returns to New Zealand.
- The New Zealand-based system works because repayments are automatic - your employer deducts 12% above the threshold before you ever see it.
- Overseas borrowers must voluntarily send money to the IRD, and their balance accrues at 5% interest. Only 27,000 of 114,060 overseas borrowers (23.6%) are doing this. The result is that $2.39 billion is overdue (and growing).
| Metric | NZ-Based | Overseas | The Gap |
|---|---|---|---|
| Borrowers | 504,738 | 114,060 | -- |
| Share of borrowers | 82% | 18% | -- |
| Total balance | $11.85B | $4.34B | -- |
| Average balance | $23,478 | $38,049 | +62% higher |
| Compliance rate | 95.4% | 23.6% | 71.8 points lower |
| Overdue borrowers | 23,283 (4.6%) | 87,086 (76.4%) | 17× worse |
| Overdue amount | $181m | $2.39B | 13× more |
| Avg overdue per non-payer | $7,775 | $27,445 | 3.5× higher |
| Interest rate charged | 0% | ~5% | Overseas debt grows |
| Automatic deductions? | Yes (PAYE) | No | Key difference |
How Overdue Debt Grows: $1.1 Billion in Penalties and Interest
Not all overdue debt is money that was originally borrowed. A significant portion - $1.15 billion - is penalties and interest that have accumulated on unpaid balances. For overseas borrowers, this is nearly half of what they owe.
Know This: $1.08 billion of overseas overdue debt is penalties and interest alone - money that didn't exist when these borrowers left New Zealand.
Know This: $1.08 billion of overseas overdue debt is penalties and interest alone - money that didn't exist when these borrowers left New Zealand.
- At ~5% annual interest, a $20,000 unpaid balance grows by $1,000 per year even without any new borrowing.
- After 15 years of non-payment, interest alone can exceed the original loan. This is why the IRD reports that ~24,000 overseas borrowers have debt more than 15 years old - their balances have been compounding for over a decade.
| Metric | NZ-Based | Overseas | Total |
|---|---|---|---|
| Assessed (principal) | $107m | $1.31B | $1.42B |
| Penalties & interest | $74m | $1.08B | $1.15B |
| Total overdue | $181m | $2.39B | $2.57B |
| % that is penalties/interest | 41% | 45% | 45% |
How Much Students Owe - Median Balance Trends
The median student loan balance has grown steadily, reflecting rising education costs.
Our View: Despite the (now-disbanded) fees-free first year, median debt has grown 31% since 2013. This reflects that fees-free only covered tuition for year one - living costs (the bigger expense) still require borrowing, and fees for other years of study still apply.
Our View: Despite the (now-disbanded) fees-free first year, median debt has grown 31% since 2013. This reflects that fees-free only covered tuition for year one - living costs (the bigger expense) still require borrowing, and fees for other years of study still apply.
| Year | Median Balance | Change from 2013 | Context |
|---|---|---|---|
| 2013 | $13,358 | - | Baseline |
| 2015 | $14,430 | +8% | Fees rising |
| 2017 | $15,227 | +14% | First year fees-free announced |
| 2019 | $16,067 | +20% | Fees-free starts |
| 2021 | $16,821 | +26% | COVID period |
| 2023 | $17,543 | +31% | Cost of living crisis |
| 2025 | $17,529 | +31% | Current — slightly down |
Frequently Asked Questions
How much do I have to earn before I start repaying?
If you're New Zealand-based, you start repaying when you earn over $24,128 per year ($464 per week) as per the IRD's 2026 tax year guidance. You pay 12% of everything you earn above this threshold. For example, if you earn $50,000, you'd repay 12% × ($50,000 - $24,128) = $3,105 per year. This is automatically deducted through PAYE. You can learn more by visting our PAYE calculator and tax codes guide.
What if I go overseas?
If you're overseas for 184+ days, you become an 'overseas-based borrower' per the IRD's guidance. You must make repayments based on your loan balance (not income), and you'll be charged interest at the annual rate. You must contact the IRD before leaving to set up a repayment plan.
Why don't overseas borrowers pay?
While the answer is not published within the IRD's data, we understand there are several reasons that contribute.
This is (arguably) why only 23.6% of overseas borrowers are currently meeting obligations.
- There are no automatic deductions from overseas employers
- Interest compounds (making the debt feel hopeless)
- Enforcement across borders is difficult, and
- Many New Zealanders overseas don't plan to return.
This is (arguably) why only 23.6% of overseas borrowers are currently meeting obligations.
Will my student loan debt be written off?
Student loans are generally written off on death or if you reach 65 and have been repaying for 15+ years with a remaining balance under $20,000. There's no automatic write-off after a certain time period. If you're overseas and not paying, the debt continues to grow with interest and penalties.
Is the student loan scheme sustainable?
For New Zealand-based borrowers, yes - 95.4% compliance is excellent. For overseas borrowers, no - $2.39 billion is effectively unrecoverable. The government has considered some recovery measures with limited success.
For example, per this RNZ article from 2025, Inland Revenue stated that between 23 January and 7 February 2025 they had emailed 3,502 borrowers with overdue repayments telling them they're being monitored, and that enforcement may be taken against them.
Our view is simple - the student loan scheme, as a whole, subsidises those who stay in New Zealand at the expense of those who leave (based on the low compliance rate).
For example, per this RNZ article from 2025, Inland Revenue stated that between 23 January and 7 February 2025 they had emailed 3,502 borrowers with overdue repayments telling them they're being monitored, and that enforcement may be taken against them.
Our view is simple - the student loan scheme, as a whole, subsidises those who stay in New Zealand at the expense of those who leave (based on the low compliance rate).
Can I take out a Student Loan (for living costs) and invest the money instead?
Legally, yes. The Student Loan Scheme doesn't restrict how you spend borrowed living costs. Some students borrow the maximum, live frugally, and invest the difference. Because New Zealand-based borrowers pay 0% interest on their student loans, you're effectively borrowing for free and investing for potential returns.
A simple calculation
The risks:
The moral question: The scheme exists to help students afford education, not to provide interest-free investment capital. It's taxpayer-funded. If everyone did this, the scheme might change. That said, the rules allow it, and investing genuine surplus (from family support or part-time work) rather than spending it isn't unreasonable. However, arguably, it's against the spirit of the student loan scheme if a borrower were to "go big" with investing.
A simple calculation
- A $20,000 loan invested (amassed from one year's student loan living costs payment), earning 7% (net) for 10 years, grows to ~$39,343 - a $19,343 gain on money that cost nothing to borrow.
- You repay through PAYE (12% above $24,128), so on a $60,000 salary, you'd clear the loan in ~5 years while your investment keeps compounding.
The risks:
- Markets crash: Your $20,000 becomes $12,000. You still owe $20,000.
- You go overseas: Your 0% loan becomes ~5% (or higher)
- Policy changes: The 0% rate is a government choice, not a right, and it could change.
The moral question: The scheme exists to help students afford education, not to provide interest-free investment capital. It's taxpayer-funded. If everyone did this, the scheme might change. That said, the rules allow it, and investing genuine surplus (from family support or part-time work) rather than spending it isn't unreasonable. However, arguably, it's against the spirit of the student loan scheme if a borrower were to "go big" with investing.
Will I be arrested if I visit New Zealand with overdue Student Loan debt?
Probably not, but the IRD is increasing enforcement. Large debts ($100,000+ average are on the watch list, as are long-term defaulters (15+ years), those with New Zealand assets (property or investments), and those who've ignored all contact.
That being said, anything can change - this RNZ story outlines the issues overseas-based New Zealanders with large student loan balances face.
That being said, anything can change - this RNZ story outlines the issues overseas-based New Zealanders with large student loan balances face.
