New measures aimed at tracking overseas-based student loan debtors are set to take effect next month.

It comes as new data shows the amount owed by student loan defaulters has topped the $1 billion mark.

Labour MP Chris Hipkins said this shows the Government's not doing enough to address student loan debt, and current policies aren't working.

"Clearly the measures implemented to date haven't made a big dent in the student loan debt or in the number of people who are finding themselves in default."

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However, Tertiary Education Minister Steven Joyce said steps have been taken.

"If we hadn't taken the action we'd started in 2010, then it would be nearly $1.4 billion by now."

Mr Joyce said as of mid-October, a new information sharing agreement between the Inland Revenue Department and the Australian Tax Office will take effect.

"We reckon about two thirds of our overseas-based borrowers who owe money and are in default are living in Australia, and this will help put the IRD in touch with them so they can chase down the debt."