- There are 262,000 New Zealand based student loan borrowers who are not actively repaying their loans. Most of these people have no obligation to pay because their income is below the threshold. We believe that New Zealand based borrowers should try to pay their loans off as soon as possible. As long as you have the debt you will be vulnerable. A future government could increase the required repayment percentage, reinstitute interest for New Zealand residents, or sell the debt to a private company. Having the debt hanging over you may also restrict your ability, to borrow to buy a house, or to move overseas.
- Almost 74,000 overseas debtors are in arrears. The overdue amount was $683,300,000, an increase of 27.7% over the previous year. $214,000,000 of this is more than 5 years overdue.
- The number of people with very large debts has increased. For example, at 30 June 2013, 967 people had debt balances greater than $139,000. This had increased to 1,169 at 30 June 2014.
- In 2013/14, 685 student loan debtors became bankrupt. The average size of the debt was $22,000.
The most recent Student Loan Scheme Annual Report is interesting. Some facts: