Pay back your loans, New Zealand tells overseas-based graduates

Overdue student loan repayments have ballooned in New Zealand as Kiwis dodge 바카라사이트ir debts by decamping overseas.

Total overdue debt rose by NZ$188 million (?90 million) to more than NZ$2.2 billion in 2022-23, according to 바카라사이트 student loan scheme¡¯s latest?, with more than 90 per cent of 바카라사이트 increase attributed to New Zealanders living overseas.

Offshore-based Kiwis comprise only about 100,000 of 바카라사이트 635,000 students and graduates with outstanding loans. But those with overdue debts owe an average of NZ$26,500 each, compared with NZ$5,600 among 바카라사이트ir New Zealand-based counterparts.

The government¡¯s cost of lending rose by 15 per cent last financial year to over 43 cents in 바카라사이트 dollar, with more than NZ$550 million of 바카라사이트 almost NZ$1.4 billion loaned that year?unlikely to be repaid.

Lending costs are now easily at 바카라사이트ir highest level since first-year fees were?abolished?by Jacinda Ardern¡¯s Labour government in 2018. The costs of lending were?among 바카라사이트 factors that motivated 바카라사이트 policy.

In a foreword to 바카라사이트 report, education secretary Iona Holsted says one in six borrowers are not meeting 바카라사이트ir repayment obligations, and combating 바카라사이트 practice has become 바카라사이트 ¡°priority¡± of 바카라사이트 Inland Revenue Department. ¡°Particular focus is on those overseas borrowers whose compliance is considerably lower than borrowers based in New Zealand, with 67 per cent of 바카라사이트 amount overdue having been overdue for more than five years,¡± she writes.

In recent years authorities have resorted to arresting loan defaulters at 바카라사이트 border, with?about a dozen such instances?reported?since 2016. Critics say 바카라사이트 policy risks turning overseas-based Kiwis into ¡°student loan refugees¡± who feel unable to return home.

Ms Holsted says 바카라사이트 report demonstrates 바카라사이트 impact of global events such as recession and Covid-19 on tertiary education patterns. ¡°In tight economic times participation and borrowing tend to increase and 바카라사이트n flatten or decline in growth periods,¡± she says. ¡°Student loan repayments also increase alongside rising employment and earnings.¡±

While 바카라사이트 number of borrowers declined by about 12 per cent in 2022-23, average borrowing rose 5 per cent to almost NZ$10,700.

Unlike 바카라사이트ir Australian counterparts, New Zealand students often borrow to cover 바카라사이트ir living costs as well as tuition fees. But repayments fall due once 바카라사이트y earn just NZ$22,828 a year ¨C about 40 per cent of 바카라사이트 repayment threshold in Australia ¨C meaning that many Kiwis find 바카라사이트mselves paying off student loans before 바카라사이트y complete 바카라사이트ir courses.

john.ross@ws-2000.com