The Tertiary Education Union and the Green Party report that funding to tertiary students has fallen 4% in the last six years. At the same time tertiary education providers have increased their fees. With the reduction in support from government and the education providers, the end result is that students get deeper in debt.
This is the first Christmas that the student loan debt arrest law has been in place. The NZ University Students Association reports that many overseas based borrowers are cancelling Christmas visits to family in New Zealand as they are scared of being arrested.
Although nobody has been arrested yet we know that the IRD has a large group of cases that are in preparation for arrest. If you are in default on your loan you can eliminate the threat of arrest by dealing with your loan. Options include an agreed arrangement with the IRD, an accepted hardship application, or possibly bankruptcy. We can help with all of these solutions. If you need help and contact us now there is every chance that your student loan problems can be resolved before Christmas so that you can travel without fear.
Believe it or not, there are many overseas based student loan debtors whose compulsory annual payments don't even cover the interest charged. The loan will continue to grow and never be paid off even though these people pay thousands each year to the New Zealand government. This is good for the IRD but a hopeless situation for the student loan borrower. If this is you, what is your long term plan? Keeping on paying and getting nowhere is pointless. There are alternatives, including getting rid of the debt. Please contact us if you would like to discuss your options.