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The government is going to chase student loan defaulters.

Thousands of student loan defaulters living abroad could be threatened with legal action as the Government seeks to recover millions of dollars of outstanding debt.

The Government today announced an Inland Revenue pilot scheme targeting loan defaulters across the Tasman would be expanded to target a further 50,000 debtors in Australia and the United Kingdom.

More than $4.7 million had been recovered in the 10-month pilot scheme, which had targeted 1000 Australia-based debtors.

The expanded scheme would involve contacting 50,000 loan holders either directly or through a nominated contact person in New Zealand, to seek payment of arrears or to set up a payment plan.

Legal action would follow if borrowers failed to comply.

 

 

 


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  • peterwn

    Probably the biggest incentive to pay up is to avoid getting a crappy credit rating.

    One arrogant young guy in Victoria says he has no intention of paying up or returning to NZ. He would not give his name for fear of being tracked down. Australian debt collectors probably have him in their cross-hairs already.

  • Todd

    Interestingly my son who happens to now live in ausy has I think a 50k loan.
    He has many NZ friends over there in the same predicament.They have taken steps such as removal from facebook,address changes and other steps to avoid paying.Now dont get me wrong as I think the money should be paid back,even with interest,but my son is 29 years old so way past listening to what i tell him.
    The point is how many with student loans and living overseas believe that since they are interest free and now historical think that they can get away with never paying the loans off.
    Just like a creditor of a company,the longer a debt remains outstanding the slimmer the chances are of recovering the debt.

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