A stakeholder and systems thinking analysis of the New Zealand Student Loan Scheme

Abstract

The purpose of this thesis is to examine the New Zealand Student Loans Scheme (NZSLS) from a Stakeholder and Systems Thinking perspective. The study is not intended to solve the NZSLS debt problem, but instead to provide a clearer insight into the dynamic and emergent behaviours of the system using stakeholder analysis frameworks and systems thinking approaches and conceptual models. The NZSLS was introduced in 1992 to assist students to overcome financial barriers to undertaking tertiary study through providing students access to finance for tuition fees and other related costs. Since the Scheme's inception in 1992 two key milestones have been reached; student loan holders' total in excess of 400,000 and total debt level exceeding $6 billion. A number of themes arise out of discussions with people from both within and external to the SLS. The key concerns expressed include the level of the Student Loan Debt and the average time it will take students to repay their student loans. The effectiveness of any system is dependent on the components within it working towards a common goal of which the actions of the systems stakeholders play a critical part. The aim of this thesis is twofold. One is to make clearer the dynamic and emergent properties of the NZSLS through applying stakeholder analysis frameworks that include rational, process and dynamic level analysis. The second is to make clearer the dynamic and emergent properties of the NZSLS through applying systems thinking frameworks that include data gathering workshops and causal loop diagrams. The data gathering workshop exercises consisted of two separate groups in an unofficial capacity, Selected Public Servants Group & Tertiary Group. Systems archetypes and key leverage points were identified from the causal loop diagram. Key findings from the CLD's indicated that 'government initiatives to reduce debt' such as 'interest write-offs', present 'Political Party Policy, SL policy, the 'Government's Tertiary Policy' are limiting the growth of student debt repayments. Supporting student's own efforts at debt repayment, and hence helping the SL holder to break out of a state of learned helplessness would provide a more sustainable long term fundamental solution. The environment required to foster and support this type of behaviour would need to be created through a change in 'Political Party Policy' and present 'Tertiary Policy'. This thesis has a wide range of social and political applications from policy designers & analysts, strategic analysts, systems thinkers, tertiary providers, those working in the tertiary education sector, to anyone with an interest in tertiary education or student debt. The frameworks applied in this thesis provide a platform from which meaningful discussion between anyone with an interest in the NZSLS can take place.