Viewport width =
March 3, 2014 | by  | in News |
Share on FacebookShare on Google+Pin on PinterestTweet about this on Twitter

“And Stay Out!”

NZUSA and VUWSA have expressed disappointment with the passage of the Student Loan Amendment Bill, which will enable the IRD to arrest overseas-based borrowers at the border for failing to repay their Student Loan debt.

The Bill passed its third reading by 61 votes to 60. It will create a fixed repayment obligation for overseas-based borrowers, in line with obligations for New Zealand–based borrowers, and increase the repayment rates for borrowers with loans of more than $45,000.

It will also give the IRD the ability to seek an arrest warrant for borrowers who persistently refuse to repay their loans. Minister of Revenue Todd McClay has said that this would be done “only after Inland Revenue has exhausted all other efforts to persuade the borrower to make repayments.”

NZUSA President Daniel Haines has called the bill “gimmicky”, and said the Government’s lack of interest in reducing the level of overseas student debt is disappointing.

“Treasury advice is that the changes are actually likely to increase default rates, and officials from IRD have also said they were not predicting an increase in student repayments, despite proposing to spend $600,000 in one-off costs in updating airport screening capacity,” said Haines.

VUWSA President Sonya Clark said that the best way to encourage loan repayment would be to introduce positive incentives.

“Treating overseas-based borrowers like criminals is likely to lead to New Zealand students with student loans staying permanently away from New Zealand if they are worried or unsure about their loan status. We don’t think that it is effective.”

Share on FacebookShare on Google+Pin on PinterestTweet about this on Twitter

About the Author ()

Comments are closed.

Recent posts

  1. Cuttin’ it with with Miss June
  2. SWAT
  3. Ravished by the Living Embodiment of All Our University Woes
  4. New Zealand’s First Rainbow Crossing is Here (and Queer)
  5. Chloe Has a Yarn About Mental Health
  6. “Stick with Vic” Makes “Insulting” and “Upsetting” Comments
  7. Presidential Address
  8. Final Review
  9. Tears Fall, and Sea Levels Rise
  10. It’s Fall in my Heart

Editor's Pick

This Ain’t a Scene it’s a Goddamned Arm Wrestle

: Interior – Industrial Soviet Beerhall – Night It was late November and cold as hell when I stumbled into the Zhiguli Beer Hall. I was in Moscow, about to take the trans-Mongolian rail line to Beijing, and after finding someone in my hostel who could speak English, had decided