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

 


Overseas student loans collection hits $100m

Hon Steven Joyce
Minister for Tertiary Education, Skills & Employment
Hon Todd McClay
Minister of Revenue


16 April 2014
Media Statement

Overseas student loans collection hits $100m

Over $100 million of additional taxpayer money has now been collected from overseas-based borrowers in an initiative that will help keep the scheme sustainable for future students and taxpayers, Tertiary Education, Skills and Employment Minister Steven Joyce and Revenue Minister Todd McClay say.

The overseas-based borrowers initiative began as a small pilot programme in 2010 and has since expanded to comprehensively target borrowers in default of their repayment obligations across Australia and the United Kingdom, plus parts of Europe, North America and Asia.

Mr Joyce says that overseas-based borrowers are responsible for around 87 per cent of all overdue loan repayments despite representing only 21 per cent of total student loan debt.

“They need to understand their loan doesn’t just go away when they go offshore,” Mr Joyce says.

“It is important that student loan borrowers meet their obligations to New Zealand tax payers who have supported their tertiary study wherever they are in the world, so we can provide the same support for the next generation of students.

“Prior to the Government starting this initiative, overseas-based debt was in the too hard basket. We still have a long way to go to get overseas-based borrowers up to speed, but passing the $100 million mark is an important milestone.

“The initiative has so far returned around $11 for every $1 invested in it.”

Mr McClay says the Government is committed to making it easier for people to repay their loans.

“Inland Revenue has set up toll-free phone numbers for borrowers living in Australia and the United Kingdom. Overseas-based borrowers can also choose from four online money transfer companies offering fee-free services, and when they use their credit or debit card, Inland Revenue will waive the convenience fee,” Mr McClay says.

The initiative uses a range of tools such as directly contacting borrowers, working with private debt collection companies to assist in tracking, tracing and collecting from borrowers in default, advertising and taking legal action against those who continue to ignore their repayment obligation.

“I want to emphasise that the arrest at the border provision is very much a measure of last resort, it will only be used for those who, despite having the ability to pay, consistently and deliberately refuse to do so,” Mr McClay says.

Inland Revenue has received over 3000 calls from overseas based student loan borrowers since the Student Loan Scheme Amendment Act 2014 was enacted on 7 March.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

'Tea Break Bill' Passes: Gordon Campbell On Bad Labour Laws And Poor Safety

By co-incidence, one of the prime dangers of the government’s new employment relations law has been underlined by the release of the death and injury statistics among workers at New Zealand ports. These are highly profitable enterprises for the port owners.

The Port of Tauranga for instance, is expecting its current full-year profit to be between $78 million and $83 million and other ports are enjoying similar boom times – but they are also highly dangerous places for the people who work on or around the port premises. At the Port of Tauranga, there have been 26 serious accidents since 2011, and two deaths. More>>

 

Parliament Today:

No Charges: Outcome Of Operation Clover Investigation

Police have completed a multi-agency investigation, Operation Clover, into the activities of a group calling themselves “The Roast Busters”. The 12 month enquiry focused on incidents involving allegations of sexual offending against a number of girls in the Waitemata Police district and wider Auckland area... More>>

ALSO:

UNICEF Report: NZ Cautioned On "Stagnating" Child Poverty

An international report by UNICEF has found that child poverty rates in New Zealand have barely changed since 2008, despite similar sized countries significantly reducing child poverty during the recent recession. More>>

ALSO:

Funding Report: Two Pathways For Transport In Auckland

Commissioned by Auckland Council, the group was asked to investigate two possible pathways for raising $300 million per year ($12 billion over 30 years) to pay for the improvements needed to help fix Auckland’s transport system. More>>

ALSO:

Pay Equity: Equal Pay Win In Court Of Appeal

CTU: The Court of Appeal has made a historic decision paving the way for a substantial equal pay claim for aged care workers. More>>

ALSO:

Gordon Campbell: On The TPP Finishing Line, And Amazon’s Woes

If the Trans Pacific Partnership trade deal wasn’t such a serious matter, this would be pretty funny… More>>

ALSO:

TV3 Video: Three Die On Roads Over Labour Weekend

The official holiday period ended at 6am Tuesday, with three deaths on the roads during the Labour Day weekend. More>>

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news