Government statistics show that, on average, student loan debtors who move overseas take twice as long to pay back their loans, compared to student loan debtors who remain living in New Zealand.
For student loan debtors who finished their education in 2009, the median student loan debt repayment time for those who stayed in New Zealand was 6.7 years. For those who left New Zealand it was 12.1 years. A large part of the difference is because overseas based debtors pay interest on their debts making it much harder to repay the student loan. Part of the difference is also due to the easier way that payments are handled if you remain living in New Zealand.
What does this mean for you? When you weigh up the costs and benefits of the big OE, your student loan debt should be taken into account. It may be much better for your long term financial security if you stay in New Zealand and pay off your student loan debt, in full, before you head off overseas. If your student loan debt is getting you down, please contact us, as we can definitely help.
For student loan debtors who finished their education in 2009, the median student loan debt repayment time for those who stayed in New Zealand was 6.7 years. For those who left New Zealand it was 12.1 years. A large part of the difference is because overseas based debtors pay interest on their debts making it much harder to repay the student loan. Part of the difference is also due to the easier way that payments are handled if you remain living in New Zealand.
What does this mean for you? When you weigh up the costs and benefits of the big OE, your student loan debt should be taken into account. It may be much better for your long term financial security if you stay in New Zealand and pay off your student loan debt, in full, before you head off overseas. If your student loan debt is getting you down, please contact us, as we can definitely help.