"This legislation continues the Government's focus on providing fairness to the taxpayer through proper oversight of the student loan scheme," Revenue Minister
"Many overseas-based borrowers are continuing to let the side down with slow repayments and high levels of loan defaults, compared to those who stay in
"We have been successful in reducing the cost of the student loan scheme to taxpayers, with the cost of borrowing reducing from around
"However this still remains higher than we would like. The Government is working to further improve the compliance of overseas-based borrowers by both tightening lending criteria and increasing the speed of repayments."
The legislation will give IRD additional tools, including seeking an arrest warrant, to deal with overseas-based borrowers who persistently refuse to repay their loans despite having the ability to do so.
"This action will be taken only in the most serious cases of non-compliance and only after Inland Revenue has exhausted all other efforts to persuade the borrower to make repayments,"
The bill also proposes to bring overseas-based borrowers' repayment obligations more into line with their
"A fixed repayment obligation will assist overseas borrowers to pay off their student loan faster and therefore reduce the amount of interest they will have to pay,"
More information on the bill is available at http://taxpolicy.ird.govt.nz/bills/147
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