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Identifying 57,000 student loan borrowers 'a significant milestone' - Woodhouse

Author
Newstalk ZB staff,
Publish Date
Fri, 16 Dec 2016, 8:28AM
Revenue Minister Michael Woodhouse spoke with Rachel Smalley (Photo / NZH)

Identifying 57,000 student loan borrowers 'a significant milestone' - Woodhouse

Author
Newstalk ZB staff,
Publish Date
Fri, 16 Dec 2016, 8:28AM

More ammo in the battle against Kiwis in Australia skipping out on paying back their student loans.

57,000 people have been identified, as part of a new file-sharing agreement with Australia - and two thirds of them are in default.

They're responsible for $1.2 billion of student loan debt - $430 million of that is default debt.

Revenue Minister Michael Woodhouse told Rachel Smalley the hardest thing has always been finding out exactly where the defaulters are.

He said they've now tracked down a "significant" number of them.

"We'll be contacting those people, and hopefully coming to an arrangement with them where they can contribute to their outstanding loans," he said. "If they don't, obviously there's a range of enforcement actions that can be considered.

"There's debt collection processes that can be put in place, and obviously the judgements can be entered and the court system can be used - clearly we don't want to do that."

LISTEN ABOVE AS REVENUE MINISTER MICHAEL WOODHOUSE SPEAKS WITH RACHEL SMALLEY

However, New Zealand Union of Students' Association president Linsey Higgins said under the current system it's tricky for those living overseas to make repayments.

"We think that when the mechanism becomes a problem, the mechanism needs to be looked at," she said.

She said she is constantly hearing how difficult it is for people to make the repayments.

"The increasing changes to the student loan scheme, especially for overseas-based borrowers, has made it really hard for them to meet those commitments."

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