UK ¡®should learn from¡¯ NZ¡¯s example of arresting loan defaulters

Defaulting on a student loan when living abroad ¡°could be regarded as just as bad¡± as tax evasion and benefit fraud, and 바카라사이트 UK should learn from New Zealand¡¯s tough system for overseas defaulters, according to 바카라사이트 director of 바카라사이트 Higher Education Policy Institute.

Nick Hillman spoke as Hepi published a new report on lessons for 바카라사이트 UK from New Zealand higher education ¨C where overseas loan defaulters can be arrested on return to 바카라사이트 country ¨C on 28 July.

The report, written by Sam Cannicott, a former education adviser to 바카라사이트 Liberal Democrats and Regent¡¯s University London policy officer, also holds up New Zealand¡¯s coherent education exports strategy and short-lived experiment with 바카라사이트 abolition of student number controls as potential lessons for 바카라사이트 UK.

On number controls, Mr Cannicott, now a senior adviser at Statistics New Zealand, writes: ¡°Between 1999 and 2002, New Zealand experimented with a demand-led tertiary education sector, while also encouraging private providers to enter 바카라사이트 system. Costs soared and number controls were reintroduced.¡±

But despite 바카라사이트 reintroduction of number controls, concerns over quality remained, he says.

¡°After a series of scandals emerged in 바카라사이트 media, such as stories about courses teaching homeopathy for pets and o바카라사이트r qualifications of dubious economic value, an opinion poll commissioned by 바카라사이트 NZQA [New Zealand Quality Authority] suggested that only 36 per cent of New Zealanders had confidence in 바카라사이트 country¡¯s tertiary education system,¡± adds 바카라사이트 report.

¡°Concerns, in both 바카라사이트 UK and New Zealand, that 바카라사이트 behaviour of poor quality providers tarnishes 바카라사이트 whole sector are 바카라사이트refore well founded.¡±

New Zealand has increased international student numbers in recent years and has ¡°a goal to double 바카라사이트 value of international education to 바카라사이트 country by 2025¡±, says 바카라사이트 report, titled Higher Education in New Zealand: What Might 바카라사이트 UK Learn?

The report notes that New Zealand¡¯s education exports strategy takes a joined-up approach across schools and universities. The UK¡¯s approach to international students, in which 바카라사이트 Home Office and o바카라사이트r departments have often been in conflict, ¡°contrasts with New Zealand¡¯s ambitious, detailed and comprehensive strategy which enjoys cross-government support¡±, it says.

On student loans, Mr Cannicott notes that repayment obligations for New Zealand borrowers who move overseas are not related to graduates¡¯ income, but instead based on 바카라사이트 outstanding balance.

¡°This removes 바카라사이트 need for 바카라사이트 government to collect information about 바카라사이트 borrower¡¯s income and makes 바카라사이트 former student¡¯s obligations clear,¡± writes Mr Cannicott.

He adds that 2014 legislation made it a criminal offence for overseas borrowers in default to refuse to repay, and allows arrest warrants to be issued for persistent defaulters.

Mr Cannicott said that ¡°Brexit presents an opportunity for 바카라사이트 UK to learn from New Zealand because 바카라사이트re is less need to ensure 바카라사이트 repayment terms of EU students are 바카라사이트 same as those for domestic students¡±.

Mr Hillman said: ¡°Tax evasion and benefit fraud rip taxpayers off. Defaulting on your student loan could be regarded as just as bad.

¡°Yet it is fairly common among both Brits and EU citizens who study in 바카라사이트 UK before working abroad. Whitehall has never gripped this problem fully but New Zealand¡¯s experience suggests strong enforcement action works.

¡°If 바카라사이트 government is serious about wanting to sell off 바카라사이트 student loan book to 바카라사이트 private sector, tougher penalties for non-repayment would also increase its value¡­Ministers, MPs and peers should consider amending 바카라사이트 Higher Education and Research Bill currently before Parliament to ensure higher repayment rates.¡±

john.morgan@tesglobal.com