The 31 March deadline is looming for overseas resident student loan debtors. Key points are:
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• A fixed amount is payable to the IRD each year. The maximum fixed amount is $5,000 per year. Generally, this is payable in two instalments, but if you did not pay your 30 September instalment the full amount needs to be paid before 31 March.
• You can pay more than the fixed amount. If your debt is large, interest will cause it to increase by more than the fixed amount, meaning that your debt will continue to grow unless you pay more or become bankrupt.
• The fixed amount does not reduce until your debt is paid off in full.
• If you do not pay the fixed amount, it becomes overdue arrears and penalty interest is charged.
• If you do have any overdue arrears, these are payable in addition to the fixed amount.
• If you have overdue arrears the IRD will pursue you, either now or in the future. The arrears need to be dealt with. There are various resolution options, but the key is to start the process.
• If you took out a student loan debt, live overseas, but do not receive correspondence from the IRD, this does not mean that things are good. You may have substantial arrears that you do not know about.
• There is no statute of limitations on student loan debts.
•  If you have any doubt about your situation we can help, or you can contact the IRD student loan team directly at obbteam@ird.govt.nz
• We offer fixed rate advice and resolution assistance. If you contact us, we will respond within a few hours and can provide advice on your options within 2-3 working days. Once we have provided advice we are available for reasonable follow up discussions and questions at no additional cost. Please contact Kristina for further information: kristina@studentloan.org.nz

In this live webinar, topics of interest to anyone with a New Zealand student loan debt, or thinking of incurring such a debt, will be covered, including:

• The origin of the student loan debt scheme.
• Alternatives to taking out a student loan debt.
• How interest works.
• Things to think about before taking out a student loan debt.
• Overview of changes to the student loan debt scheme (past and future possibilities).
• Student loan things to think about if you are moving in or out of New Zealand.
• How much the debt can grow.
• What to do if you know you have a debt but you don't know the details.
• Resolution options.
• Things to think about before making a decision to settle with the IRD or before deciding to become bankrupt.
• Tips for dealing with the IRD and the Insolvency Service (Official Assignee).
• How do you know if the IRD is treating you fairly?
• Questions?

​Please visit Eventbrite to book.

One of the things that surprises many student loan borrowers is that interest is generally charged on the debt if they are living overseas. There are some circumstances under which the IRD can write off interest. The circumstance that affects the greatest number of people is full time overseas tertiary study. In the last few years we have seen changes in the way that the IRD interprets eligibility for this write off. In the past, the IRD required that the reason for the borrower moving was to pursue tertiary study overseas. Then there was a period when the IRD just required overseas tertiary study at a high enough level, and did not take much account of the reason for leaving New Zealand. Many more people became eligible for interest write offs. The IRD is now back to requiring that there is a connection between the move out of New Zealand and overseas study. One way that the connection may be shown is that overseas study was begun within a short period of time of leaving New Zealand. If you have a good case for this interest write off , we advise that you apply for it as soon as possible. It is currently possible to apply many years later, but it may be more difficult to show proof if a long period of time has elapsed.

There are other reasons why interest can be written off, but if you do not qualify, the IRD has to charge interest while you have any debt, if you are an overseas based borrower. If you have a student loan debt the interest charges should be taken into account if you are considering moving out of New Zealand. Not only are these likely to be significant, if you get behind, late payment penalty interest will also be charged.

​If you need help with these issues, please contact us.

If the IRD, Baycorp or CCI calls what should you ask them?
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Ask them to tell you:

• The amount of the full debt.
• How much of that debt is in arrears.
• The amount of your penalties.
• When your next payment is due and how much it is.
• The travel dates that the IRD holds on file for you (this affects the charging of interest).
• Ask them to email you a 1 page break down of the debt (this is different from the multi-page statement that is sent out several times a year).
• Request a reasonable amount of time to look at your options and come back to them with a plan. A couple of weeks is often a good start. We can advise you of your options within 48 hours, in most cases.

You need the details so that you know where you stand and so that you can make a plan to deal with the problem.