When you return to New Zealand, and start work, the IRD will be informed by your employer. It is becoming increasingly common for the IRD to then advise your employer to take an extra 20% out of your pay for your student loan arrears. On top of income tax, and normal student loan deductions, you could lose around 60% of your pay to the IRD. The embarrassment of having your employer receive a deduction notice from the IRD can also be a big issue. It is possible to negotiate for the 20% to be removed, in some cases, and we have assisted many clients with this, however, what concerns us is that people are not considering the impact of migration on their student loans before they make a decision to move.
If you have a New Zealand student loan, moving in or out of the country can have significant financial implications. You should understand what those are, and be sure that you can cope with them, before you decide to move. If you have any questions about your situation we are here to help.