The "back-door" to New Zealand residency for lower-qualified international students may have led to students targeting New Zealand as a path towards residency, rather than study purposes.
And officials advising the Government on immigration policy say that the rise in international students becoming residents has lead to a "gradual decline in the average skill level of new permanent residents observed in the last five years".
The advice is contained in ministerial briefings from the Ministry of Business, Innovation and Employment from November, released under the Official Information Act.
The Labour-led Government wants to improve the integrity of the system to make sure international education system is focused on quality education for genuine students, and to remove the "back door" path to residency for lower-qualified international students.
International students can work in New Zealand under the post-study work visa after they finish studying, but this has allowed some students to become permanent residents who might not have otherwise been approved.