There is no limitation period for New Zealand student loan debt collection. This can be a problem in itself as the debt can follow someone for the rest of their life.
It is also sometimes a problem for people who paid the debt off a long time ago but who have not kept proof of this thinking it was not necessary. Already this year we have had several cases where the person was adamant that they, or their family member, paid the debt in full more than 7 years ago. The IRD says that they have no record of the payment. The limitation problem affects these people in two ways. Not only is there still a debt to the IRD, but they cannot obtain proof of payment from their bank as most banks destroy records after 7 years. This is one of the reasons why we advise that you keep records of all dealings with the IRD indefinitely (including proof of all payments).
It is also sometimes a problem for people who paid the debt off a long time ago but who have not kept proof of this thinking it was not necessary. Already this year we have had several cases where the person was adamant that they, or their family member, paid the debt in full more than 7 years ago. The IRD says that they have no record of the payment. The limitation problem affects these people in two ways. Not only is there still a debt to the IRD, but they cannot obtain proof of payment from their bank as most banks destroy records after 7 years. This is one of the reasons why we advise that you keep records of all dealings with the IRD indefinitely (including proof of all payments).
