Dunne: ads speak to parents of overseas student borrowers
16 June 2011

An advertising campaign has been launched this week to get parents of overseas-based student loan borrowers to remind them to repay their loans, Revenue Minister Peter Dunne said today.

 The advertisements build on the success of the Government initiative which has recovered $2 million in outstanding student loan debt from borrowers in Australia in the last six months, Mr Dunne said.

 “Often for young people who have gone overseas, it is a case of out of sight, out of mind and they stop paying off their student loans or are very slow to do so.

 “The ads are about getting their parents or family to remind them that when they move overseas, their student loans start accruing interest at a rate of 6.6% and it is in their best interests to be paying it off,” he said.

 “Interest and any non-payment penalties that are incurred can see the balance grow very quickly and that is in no one’s interests.

 “Parents sometimes recognise that reality more quickly than someone by now working overseas and putting their student loan to the back of their mind. As such, family can have a useful role in prompting them to start addressing their debt.

Mr Dunne said that while overseas-based borrowers have much lower repayment compliance and up to five times slower than New Zealand-based graduates to repay their loans.

 Inland Revenue is also undertaking legal action again a number of Australian-based student loan defaulters, while the Government also working on a new law that will allow it to recall the student loans of the worst defaulters.

The Student Loan Scheme Bill would grant the Inland Revenue Commissioner the power to recall entire loan balances, Mr Dunne said.

More information about repaying student loans can be found at www.ird.govt.nz/studentloans/overseas/

 

If you have a query regarding your student loan, please contact Inland Revenue at or toll free from Australia on 1 800 559 653.