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

Open Source // Open Society - Full Coverage

Gordon Campbell:
On The Reserve Bank And Auckland Housing

The ‘crisis – what crisis?’ response by the government to the Auckland housing price bubble is no longer acceptable.

So says Reserve Bank governor Grant Spencer – who used unusually frank language in his speech and subsequent interviews yesterday to call for a capital gains tax, and to generally chastise central and local government for their inaction on a threat to the country’s economic health and financial stability.

That threat has been real for some time. The housing price bubble has already created a currency bubble... Undaunted, the government keeps calling this situation a success story. More>>

 

PARLIAMENT TODAY:

Bangladesh: GCSB Dragging NZ Into Human Rights Abuses

The New Zealand government should stop providing intelligence assistance to Bangladeshi security agencies that are known to systematically engage in human rights abuses, said the Green Party today. More>>

ALSO:

Troops Heading To Iraq: Government Must Come Clean On Deployment

New Zealanders deserve more than to hear about their troops’ deployment overseas from Australian media, Opposition Leader Andrew Little says. “News from Australia that Kiwi troops are on their way to Iraq this week is another example of the culture of secrecy and unknown protections around the deployment.” More>>

ALSO:

Image: Strikers And Protestors Join Outside McDonald's

A group of protestors took to McDonald’s Manners St today as a part of the international fast food workers day of action to end zero hour contracts. More>>

ALSO:

Greens: Special Education Funds Not Spent

More than $32 million of funding for children with special needs has not been spent by the Government, despite families of children with special needs complaining for years that they’ve been denied the support they deserve. More>>

ALSO:

John Key: Pre-Budget Speech To Business NZ

So this Government will remain relentlessly focused on improving the competitiveness of our economy... We will continue to give businesses a platform to invest, grow and create jobs in the knowledge they will be backed by a clear and consistent government policy programme. More>>

ALSO:

Multimedia: Andrew Little’s Response To John Key’s Pre-Budget Address

Labour Party leader Andrew Little spoke today on John Key’s pre-budget address this afternoon in Wellington. Little said National has had seven years to achieve a surplus and Kiwis have “fufilled their end of the bargain.” More>>

Surplus Baggage: Key Backs Off ‘Artificial Target’

John Key’s attempt to redefine his cornerstone promise of two election campaigns as an artificial target suggests his other promises are works of fiction, says Labour’s Finance spokesperson Grant Robertson. More>>

ALSO:

Gordon Campbell: On UE Pass Rates And University Dropout Rates

Houston, there is clearly a problem with (a) the plunge in pass rates for University Entrance qualifications, which has been especially steep among Maori students and also a problem with (b) the failure rates for Maori students among those who reach university... Unfortunately the two problems seem related. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news