Arrest at Border Does Little to Solve Problem – NZUSA

With the recent arrest to an overseas based borrower at Auckland Airport the New Zealand Union of Students’ Associations ask, if this scheme is really how our country wants to be known.

NZUSA President Linsey Higgins is dismayed at the continual use of draconian techniques to recoup student loans. “Pushing borrowers to repay using harsh techniques is only going to create an adversarial relationship. It breeds fear and forces people to never return. This is damaging to our reputation as a nation.”

“The approach of arresting people is evidence the government has failed to implement an approach that supports borrowers to repay in a timely manner.”

“Given that the arrest earlier this year was found to be an error, serious concerns have also been raised about the ability of IRD to manage this process in a way that is fair and just.”

NZUSA challenges Ministers Joyce and McClay to find more favourable repayment conditions for overseas based borrowers and better promote the services that have been put in place to support overseas based borrowers (such as zero fee money conversion facilities).

“Instead of using legislation to make them criminals, the rules should be used to support borrowers to make repayments. We would be delighted to work with the Ministers to see this happen.”

“The focus should be on paying back what’s important – the principal. The student loan scheme has failed if it traps borrowers into spending their lifetime paying back interest on a loan. That is not why the scheme exists and it’s not why people study at a tertiary level.”