Student loan bill passes

Last updated 19:23 06/03/2014

Relevant offers


Education Minister Hekia Parata announces Marlborough colleges decision Live Chat replay: Chief Social Worker Paul Nixon talks child abuse in NZ Partner of Kiwi detainee speaks out about detention centre struggles Stories of detained Kiwis show 'crude' nature of Aus policy - Andrew Little Why I'm voting my daughter's choice in the flag referendum Positive signs from Andrew Little's Australia trip, but more heat than light? Jacinda Ardern: 'It's not a good place to be a child' Waikato ratepayers pay for investigation into mayor's swear word Drunk, defiant Muldoon snaps, calls election - 150 years of News Lack of trust in National Standards on the agenda for Blenheim schools

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?



Vote Result

Related story: 110kmh limit moves closer

Featured Promotions

Sponsored Content