Student loan bill passes

ANDREA VANCE
Last updated 19:23 06/03/2014

Relevant offers

Politics

Panama Papers 'wake-up call' for NZ tax system - Peter Dunne Wicked Campers should remove sexual slogans or get out cheque book, says Paula Bennett Labour seeks inquiry into foreign trusts after PM's lawyer lobbied Government Labour leader Andrew Little ends secret Iraq trip Duncan Garner: Some home truths for a Government missing in action City councillor to contest Hamilton mayoralty More Kiwi travellers report problems with passport scanning machines Labour says Argentinian court case raises questions for OIO Kiwi seafood giants mount legal challenge to Kermadec Sanctuary plan The cheat's guide to the Indiana primaries

Tough new sanctions under which the worst student loan defaulters will be arrested at the border passed through final stages at Parliament this afternoon.

The Student Loan Scheme Amendment Bill (No 3) is aimed at borrowers who persistently refuse to make repayments.

From April 1, Inland Revenue will be able to seek an arrest warrant to deal with serious cases. And those with loan balances of over $45,000 will have their repayment rates increased.

The Government wants to claw back millions of dollars in unpaid debt, and says overseas-based borrowers are responsible for 80 per cent of all overdue loan repayments.

Tertiary Education Minister Steven Joyce said: "It is important that student loan borrowers meet their obligations to the people who have supported their tertiary study, wherever they are in the world, so we can provide the same support for the next generation of students."

The bill was introduced in August last year.

The New Zealand University Students' Association (NZUSA) has argued the sanctions would be ineffective as less than half of defaulters carry Kiwi passports.

Opposition MPs also argued the changes would lead to student numbers falling and debts growing.


Ad Feedback

- National

Special offers
Opinion poll

Should the speed limit be raised to 110kmh on some roads?

Yes

No

Vote Result

Related story: 110kmh limit moves closer

Featured Promotions

Sponsored Content