Overseas ‘Student Loan’ debtors face tougher measures and higher repayments

Tougher rules for overseas-based borrowers 

The Student Loan Scheme Amendment Bill (No. 3), introduced in August 2013, passed its final stages in Parliament today.

The new legislation includes tougher measures to deal with student loan borrowers who persistently refuse to make repayments and introduces higher repayment obligations for overseas-based borrowers to assist them to pay off their loans sooner.

Overseas-based borrowers are responsible for 80 per cent of all overdue loan repayments.

“The reality is that a minority of borrowers, who are mainly overseas-based, do not accept the responsibility to repay their loan, despite having the financial ability to do so,” Revenue Minister Todd McClay says.

“The new rules will give Inland Revenue the ability to seek an arrest warrant to deal with the most serious cases when all other efforts to persuade the borrower to make repayments have failed.”

Overseas-based borrowers with loan balances over $45,000 will also have their repayment rates increased. This brings them into line with the repayment obligations for New Zealand-based borrowers.

The new rules will apply from 1 April this year for the 2014–15 tax year.

If you have Student Debt that is weighing you down, don’t panic!

Tax Debt Management is here to help. Simply call 0800 829 277 now to get your repayments sorted in a way YOU can afford.

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