Inflated student loan debt stopping New Zealanders from coming home – Greens

After collating stories from over 400 New Zealanders living and working overseas, the Green Party is calling for an urgent cross-party inquiry into the student loan repayment scheme for overseas-based New Zealanders.

“The system isn’t working, because it isn’t fair,” says the Green Party’s Overseas New Zealanders spokesperson, Lawrence Xu-Nan.

“We should be welcoming our friends and whānau home for Christmas, but for many of those living overseas with student loans, they’re simply too worried about their debt .

“78 per cent of the over 400 people who shared their experiences with us said they were making no progress paying off their loan from overseas. 82 per cent said they were worried or extremely worried about their loan.

“Since 2011, overseas student loan debt has increased eight-fold, from $289 million, to $2.193 billion. In that same time, the number of New Zealanders overseas with overdue payments ballooned from 52 per cent to 71 per cent.

“This April, the Government hiked interest rates from 3.3 per cent to 4.9 per cent, hitting those already finding it toughest, hardest.

“The system is broken. Inflexible repayment schemes, interest rates and penalty fees are driving people into debt they have no chance of paying off.

“We are seeing record numbers of New Zealanders leaving Aotearoa and away from their whānau because there simply aren’t enough jobs, and then adding barriers for anyone considering returning to Aotearoa.

“We can have a country that looks after its people, one where New Zealanders can get a good job and afford a home, and doesn’t punish people for seeking opportunities overseas. That starts with facing the facts,” says Lawrence Xu-Nan.

Notes:

• The Green Party has launched a petition calling for a cross-party inquiry, which can be found here: https://action.greens.org.nz/student_loan_inquiry
• The Green Party surveyed over 400 New Zealanders living overseas in 23 countries across three months.
  • 78 percent did not think they were making meaningful progress on repaying their student loan.
  • 82 percent were worried or extremely worried about their student loan.