The headline on this article is only one step more absurd than the one on the actual story (Wipe your student loan: go bankrupt). ¬†The inference is that students deliberately declare bankruptcy while overseas to avoid paying back their student loan.
Increasing numbers of Kiwis are going bankrupt overseas, allowing them to avoid repaying their student loan.
More than $6 million of student-loan debt belonging to 99 overseas-based Kiwis has been written off so far this year – an average of $60,000 each – according to figures released to The Dominion Post under the Official Information Act.
The number of overseas-based bankrupts having their loans written off has more than doubled from 42 last year. From 2010-12, the number ranged from 35 to 45.
OMG! ¬†This must be a scandal, right?
Inland Revenue has played down the increase, and said student loans were not the main driver of most of the bankruptcies. “Most of these people also owe other creditors . . . It just happened these people had a student loan, which automatically gets written off along with their other debts when granted bankruptcy.”
The IRD “played down” the increase ¬†OMG! ¬†It’s a cover up!
(Wait for it) Read more »