Another arrest made over unpaid student loan debt
02/06/2016 by Jancy StottA timely reminder to not make like an ostrich about your student debt. If you're planning to go overseas for less than six months, the way you pay your student loan stays the same. If you're planning to go overseas for more than six months, your repayment obligations change. If you have concerns how this may affect your travel plans or just want to know what's happening with your student loan, please contact our office today.
Woman arrested at Auckland Airport over unpaid student loan.
A woman trying to board a flight to Australia has been arrested at Auckland Airport allegedly for an unpaid student loan debt. An Inland Revenue spokesperson confirmed the arrest and said it was "used as a last resort", The New Zealand Herald reported. She appeared in Manukau District Court on Wednesday.
Overseas-based borrowers are responsible for 80 per cent of all overdue loan repayments, causing IRD to crack down on defaulters. About 20 people who have defaulted on their repayments are currently under surveillance for possible arrest upon returning to New Zealand.
In January, Nga Puna, a nephew of the Cook Islands Prime Minister Henry Puna, was the first person arrested under laws introduced in 2014 to tackle an $800 million outstanding student loan problem for Kiwis overseas. Mr Puna studied at Auckland University two decades ago, racking up a loan of $40,000, which expanded to more than $120,000 with interest. Back home now after his arrest, Mr Puna said "because I got arrested people are looking at me differently now". He said he was never dodging his debt and vowed to pay it off.
