The IRD's student loan debt arrest policy has been so successful for the government that the IRD receives back $22 for every $1 it spends on chasing student loan debtors. Not only that, other countries are being encouraged to follow New Zealand's example. The Higher Education Policy Institute suggests that the UK should do the same and notes that the arrest law is like a "fruit machine." The Institute also notes how little support student loan debtors have in the media.
We deal with people whose lives are devastated by the IRD's refusal to fully consider their financial situation, and who have no way to get their debt back on track because of inflexible policies. Arrest laws frighten people and probably do encourage payment, but our opinion is that more people would pay if there was greater flexibility to consider their circumstances. People want to pay but sometimes they need a bit of help.
We deal with people whose lives are devastated by the IRD's refusal to fully consider their financial situation, and who have no way to get their debt back on track because of inflexible policies. Arrest laws frighten people and probably do encourage payment, but our opinion is that more people would pay if there was greater flexibility to consider their circumstances. People want to pay but sometimes they need a bit of help.
