It is reported that more than 5500 overseas-based student loan borrowers have returned to New Zealand since April 2020.
If you are one of these people, these points may be useful:
If you are one of these people, these points may be useful:
- You need to let the IRD know that you have returned.
- Your obligatory payment obligations will change from a flat amount to an income based amount. Some returnees will now have no obligation to make payments (if their income is low and they have no arrears), and others will have to pay more.
- If you have overdue arrears you are now an easy "target" for the IRD to take action against, if you do not resolve them ASAP. The most common methods for dealing with overdue arrears are a hardship application, a payment arrangement, or lump sum payment offer. For some people, bankruptcy may be an option, but, in general, the implications are significantly harsher than if you were living outside New Zealand. If you do not deal with your arrears, the first step taken by the IRD may be to send a letter to your employer garnishing your pay. They have many other tools available. Delaying dealing with arrears is not an option if you are living in New Zealand.
- If you would like to discuss your situation or options, in confidence, please contact us.