Fraudulent student loans can destroy lives. Fortunately, the IRD now has greater powers to deal with fraudulent student loans.

In situations where the IRD is satisfied that the person, who was allocated the loan debt, did not actually take it out, and the actual person cannot be identified, the IRD may be able to write off the loan. Generally speaking, the IRD will deal with such cases where the loan balance was transferred before 1 April 2000, and Study Link will usually deal with loans transferred after that date. 

The push for relief for student loan debtors is growing in many countries, including the US, but not in New Zealand. Many of our overseas based student loan debtors are under a burden so heavy that it impacts their mental health and quality of life.

With Covid, many borrowers have suffered a reduction in income, making it even more difficult to pay a debt that has grown out of control. A complete reworking of the scheme would be best in order to provide better resolution options, however, at the very least why aren't we granting an interest/repayment holiday while Covid is affecting so many of our borrowers? If we can do this for mortgages and all kinds of other debt, why are student loan debts (some of which are the size of mortgages) treated differently?

​As the Al Jazeera article notes, governments should be investing in people, including those who have student loan debt: "Everyone deserves to live a life of dignity and the opportunity to reach their full potential."