Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Student loan bill passes second reading

The Student Loan Scheme Amendment Bill (No 3), which changes repayment obligations for overseas-based borrowers and tougher measures for persistent non-payers, passed its second reading in Parliament today.

“This legislation continues the Government’s focus on providing fairness to the taxpayer through proper oversight of the student loan scheme,” Revenue Minister Todd McClay says.

“Many overseas-based borrowers are continuing to let the side down with slow repayments and high levels of loan defaults, compared to those who stay in New Zealand and pay off their loans,” Tertiary Education, Skills and Employment Minister Steven Joyce says.

“We have been successful in reducing the cost of the student loan scheme to taxpayers, with the cost of borrowing reducing from around 48 cents in the dollar in 2009 to an estimated 39 cents in the dollar as at 31 March 2013.

“However this still remains higher than we would like. The Government is working to further improve the compliance of overseas-based borrowers by both tightening lending criteria and increasing the speed of repayments.”

The legislation will give IRD additional tools, including seeking an arrest warrant, to deal with overseas-based borrowers who persistently refuse to repay their loans despite having the ability to do so.

“This action will be taken only in the most serious cases of non-compliance and only after Inland Revenue has exhausted all other efforts to persuade the borrower to make repayments,” Mr McClay says.

The bill also proposes to bring overseas-based borrowers’ repayment obligations more into line with their New Zealand-based counterparts by proposing a fixed repayment obligation and increasing the repayment rates for borrowers with loan balances over $45,000.

“A fixed repayment obligation will assist overseas borrowers to pay off their student loan faster and therefore reduce the amount of interest they will have to pay,” Mr McClay says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news