Further information has now emerged about the man arrested for defaulting on his student loan. He is a resident of the Cook Islands. His loan debt has increased from $40,000 to $130,000. Much of this increase is likely to be because of overseas interest charges, yet all of this may have been able to have been avoided. There are special interest exemptions available for residents of the Cook Islands (and other places). Had the debtor applied to the IRD on time he could probably have had his whole interest written off and saved an increase of $90,000. Sadly, it may now be too late to get the write offs that were available in the past.
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Better education is needed. 

For many months the IRD has had a long list of overseas resident student loan debtors that they are ready to arrest if they return to New Zealand. The first arrest happened this week. It is reported that the debtor owed around $20,000. Many student loan debtors owe much more than this. 

The arrest is a reminder to not delay getting your student loan sorted out. And to do so well before you plan to travel back to New Zealand. Please contact us if you would like help.

Please click on the link to hear our managing director interviewed today by Jim Mora on Radio New Zealand on the topics of student loan debtor arrest, student loan refugees, bankruptcy, and dealing with the IRD.