Kerre Woodham: Chasing overseas student loan debt is long overdue

In this spirit of taking the good news where we find it, I was absolutely delighted to see the results of Inland Revenue going after student loan defaulters. At the end of April, there were 113,733 people with student loans believed to be based overseas. If you're based overseas, you don't get the student loan automatically taken out of your pay packet. Overseas, it's up to you to make repayments, and more than 70% of those are in default on their loans – so it’s up to them to make the repayments. 

Despite the extraordinarily expensive tertiary education they receive, they don't seem to understand what a loan is. They owe $2.3 billion, of which more than $1 billion is penalties and interest. Even if you wiped the penalties that is still $1 billion, owing to the taxpayer. We paid for the lion's share of the education, around 70% of the true cost of the education, they took out a loan which was paid for by the taxpayer, and $1 billion is owing to us. For about 24,000 of these overseas based borrowers, the debt is more than 15 years old.  

Inland Revenue has collected more than $207 million in repayments since July last year from student loan borrowers living overseas, and that's 43% up on the same period the previous year. And the reason for the sudden flurry of productivity and getting the money back? Inland Revenue was given the money, student loan compliance funding, to go after the little thieves, so they finally had the resource to be able to do it.  

According to Inland Revenue, they've contacted more than 12,000 borrowers – 1,320 of them have entered repayment plans, 960 have fully repaid their overdue amounts. Inland Revenue has seen a collective repayment of $9 million once they took an interest. Thank God. The department is also looking at borrowers who own property in New Zealand – there are just over 300 of them. And ever since “hello, it's Inland Revenue on the phone. We understand you owe us money. We also understand you have property in New Zealand”, shockingly, these people are suddenly able to find the money to repay the New Zealand taxpayer. So they've paid up $1.7 million.  

Any defaulters within the group who have refused to engage and resolve their defaults, says Inland Revenue, will see further legal enforcement taken, which may include New Zealand based bankruptcy or charging orders over their properties. They're doing the same for student loan defaulters who have investments or bank accounts receiving interest income in this country. Just watch these people suddenly come up with the money they owe once they realise Inland Revenue will be able to go sniffing around in their accounts. And as a last resort there'll be arrests at the border.  

This is so overdue. In the past there seems to have been a reluctance to go after overseas based student loan defaulters. What about when they all flocked back to New Zealand during the Covid times? That was the perfect time to collect the money owed. It is a kindness to the borrowers to keep that student loan debt at the front of their minds. If you can forget about a big debt, if there are other people screaming at you for money who are up in your grills, you'll park it and put it to one side and think I'll do that when I get a bonus at work, or I'll do that one day, and then it gets so big that it becomes terrifying and you just don't think about it. You will remain in blissful and wilful ignorance of the monies owed, and then the penalties and interest that blow out that original loan. Keep it at the forefront of their minds.  

There are all sorts of arguments that have been put up by student loan thieves over the years. We're the best and the brightest. If you come after us, we won't come home. We'll keep our enormous intellects overseas. Well, you can't be that bloody bright if you don't understand what a loan is, can you? It's not a gift. It was a loan. You have to pay it back.

Anot

Episode Transcript

Speaker 1 (00:06):
You're listening to the Carrywood and Morning's podcast from News Talks,
he'd be.

Speaker 2 (00:11):
In the spirit of taking the good news where we
find it. I was absolutely delighted to see the results
of Inland Revenue going after student loan defaulters. At the
end of April, there were one hundred and thirteen thousand,
seven hundred and thirty three people with student loans believed
to be based overseas. If you're based overseas, you don't

(00:34):
get the student loan automatically taken out of your paypacket. Overseas,
it's up to you to make repayments, and more than
seventy percent of those are in default on their loans,
so up to them to make the repayments. Despite the
extraordinarily expense of tertiary education they receive, they don't seem

(00:54):
to understand what a loan is. They owe two point
three billion dollars, of which more than one billionaires penalties
and interest. Even if you wiped the penalties, that is
still one billion dollars owing to the taxpayer. We paid

(01:19):
for the line's share of their education, around seventy percent
of the true cost of the education. They took out
a loan which was paid for by the taxpayer and
one billion is owing to us for about twenty four
thousand of these overseas based borrowers. The debt is more
than fifteen years old. Inland Revenue had collected more than

(01:42):
two hundred and seven million in repayments since July last
year from student loan borrowers living overseas and that's forty
three percent up on the same period the previous year.
And the reason for the sudden flurry of productivity and
getting the money back well, Inland Revenue was given the

(02:03):
money student Loan Compliance funding to go after the little thieves,
so they finally had the resource to be able to
do it. According to Inland Revenue, we've contacted more than
twelve thousand borrowers on three hundred and twenty of them
have entered repayment plans. Nine hundred and sixty have fully
repaid their overdue amounts. Inland Revenue has seen a collective

(02:28):
repayment of nine million dollars once they took an interest,
thank god. The departments also looking at borrowers who own
property in New Zealand. There are just over three hundred
of them and ever since Hello It's unnamed Revenue on
the phone. We understand you owe us money. We also
understand you have property in New Zealand. Shockingly, these people

(02:50):
are suddenly able to find the money to repay the
New Zealand taxpayer. So they've paid up one point seven million.
Any defaults within the group who have refused to engage
and resolve their defaults as Inland Revenue will see further
legal and enforcement taken, which may include New Zealand based
bankruptcy or charging orders over their properties. They're doing the

(03:14):
same for student loan defaulters who have investments or bank
accounts receiving interest income in this country. Just watch these
people suddenly come up with the money they owe once
they realize Inland Revenue will be able to go sniffing
around in their accounts, and as a last resort, there'll
be arrests at the border. This is so overdue. In

(03:36):
the past, there seems to have been a reluctance to
go after overseas based student loan default is what about
when they are flocked back to New Zealand during the
COVID times That was the perfect time to collect the
money owed. It is a kindness to the borrowers to
keep that student loan debt at the front of their minds.

(03:59):
If you can forget about a big debt, if there
are other people screaming at you for money, who are
up in your grills, you'll park it and put it
to one side and think, I'll do that when I
get a bonus at work, or I'll do that when
one day and then it gets so big that it
becomes terrifying and you just don't think about it. You
will remain in blissful and willful ignorance of the money

(04:21):
z owed and then the penalties and interests that blow
out that original loan keep it at the forefront of
their minds. There are all sorts of arguments that have
been put up by student loan thieves over the years.
We're the best and the brightest. If you come after
us where don't come home. We'll keep our enormous intellects overseas.

(04:45):
But you can't be that bloody bright if you don't
understand what a loan is, can you. It's not a gift,
it was a loan. You have to pay it back.
Another argument is, oh, it's all right for you. Your generation
got free university education. We had to pay for it.
When it was really the generation before that received free education.

(05:07):
But back then they really did only take the best
and the brightest. Numpties need not apply. Total enrollments at
all universities in New Zealand were sixteen and a half
thousand and nineteen sixty. Today there are one hundred and
seventy seven thousand university and students in New Zealand. I'm

(05:28):
quite happy to have a discussion about making uni centers
of academic excellence and restricting access once again to only
the very best and the brightest and pay for that education. Absolutely,
if we reduce it down from one hundred and seventy
seven thousand to sixteen, we can afford that. Happy to
have a chat about means testing, But not until you

(05:50):
do what most of us manage to do, even the
most lowly qualified of us. Pay your bills and pay
what you owe.

Speaker 1 (06:00):
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