Student loan defaulters across Tasman face legal action
Student loan defaulters living in Australia will be threatened with legal action from today in a campaign that aims to recover millions of dollars of outstanding debt.
Student loan defaulters living in Australia will be threatened with legal action from today in a campaign that aims to recover millions of dollars of outstanding debt.
Letters are being sent today to borrowers in Australia, as the first step in a loan recovery scheme that could lead to defaulters being slapped with court proceedings and possible bad credit ratings.
A pilot campaign began in October, when more than $15 million was owed to the IRD by 3500 New Zealanders across the Tasman.
Some 1000 borrowers were contacted by letter and phone, resulting in $818,392 being repaid by 243 borrowers, while another $1.09m was repaid by 400 borrowers as a result of a indirect online campaign.
Tertiary Education Minister Steven Joyce said the pilot scheme had worked well and it was time to step up the campaign.
"People who are based overseas are taking on average 14 years to pay back their debts, and that affects the sustainability of the whole student loan system," Mr Joyce told the New Zealand Herald.
"It's just not fair on taxpayers and it's also not fair on borrowers who remain in New Zealand and pay their debts."
NZPA
Wed, 01 Jun 2011
Wed, 01 Jun 2011
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Student loan defaulters across Tasman face legal action
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