The Independent reports that UK student loans are having a devastating effect on the finances and mental health of many borrowers. In our experience, the situation is similar in New Zealand but there is less discussion. Commonly we see situations where debtors and their families are humiliated and ridiculed by debt collectors, the IRD, and in the media. The heavy handed collection approach causes many to give up in despair.
As the Independent also reports, New Zealand student loan debtors have the second highest average debt out of all English speaking countries. In an election year we should be asking who this high level of debt benefits. We also need to know what the plans are for the future management of student loan debt. Will the IRD offer more flexible payment solutions? Will interest be reinstated for New Zealand based borrowers? Will the debt be sold to private debt collectors? If new students incur less debt under a new government's new policies, how will we ensure that people with existing debts are treated fairly?
Let's talk about the issues and the fairest way forward.
As the Independent also reports, New Zealand student loan debtors have the second highest average debt out of all English speaking countries. In an election year we should be asking who this high level of debt benefits. We also need to know what the plans are for the future management of student loan debt. Will the IRD offer more flexible payment solutions? Will interest be reinstated for New Zealand based borrowers? Will the debt be sold to private debt collectors? If new students incur less debt under a new government's new policies, how will we ensure that people with existing debts are treated fairly?
Let's talk about the issues and the fairest way forward.