Students are borrowing more than ever as tertiary fees rise - and those who head overseas after study are likely to take much longer to repay their loan.
The annual report on the student loan scheme shows the average amount borrowed in 2013 was $8315, an increase of 6.3 per cent ($493) on the previous year.
The increase has been driven mainly by fee rises. In recent years New Zealand universities have hiked fees by the maximum 4 per cent allowable.
At June 30 this year, 721,437 people had a student loan. The average loan held by Inland Revenue was $19,731.
The median repayment time for all borrowers who finished study in 2011 is forecast to be seven years. Those who stay in New Zealand have an expected median repayment time of 5.8 years, compared with 15.2 years for those who will not always be based in the country.
The Government has targeted overseas borrowers to make sure they comply with repayment requirements.
Inland Revenue tracks overseas-based borrowers and information sharing with Customs tells it when borrowers arrive in the country and the Department of Internal Affairs can flag when borrowers apply for a passport.
The department estimates that these measures have netted it an additional $123 million in repayments from 2010 to June.
Overdue repayments rose by 21 per cent in 2012/13, driven by an increase in defaulting overseas-based borrowers.
A large group of people overseas reached the end of their automatic three-year repayment holiday and did not meet their repayments afterwards.
Student loans can also be written off due to death or bankruptcy.
In the year to June 30, $15 million was written off because of 685 bankruptcies. The average amount written off was $22,000.