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New Zealand Student loan living in the UK

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I would be interested to know whether this law change can be retrospective...

.surely if you signed a loan agreement in 1994,

then you would be bound by that agreement?

I am puzzled as to how student loan agreements signed before a later law change can be legally enforceable now, or am I misunderstanding something here!

 

My daughter is making repayments as she can afford them, but has just received a threatening letter from IRD to say they will take money from her bank account or salary if she does not cough up with $30,000 very soon.

 

As though she has been salting money away for years.

Could anyone advise how to go about declaring bankruptcy in NZ?

How do you start that process?

Seems like the only option. I

would be interested in any advice!

 

What is to stop someone with dual nationality, having got a passport where they are resident, in using their foreign passport and not their NZ one. If they did this then surely the NZ border people would not pick up any student loan issues. Just a thought.

 

Yes, I am also interested in this as I know of people who have done this..

.perhaps it is an idea to try!

Or is it a bit too simple?

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Yes, I am also interested in this as I know of people who have done this...perhaps it is an idea to try! Or is it a bit too simple?

 

As long as you don't mind the queue and the border officers asking you about your visit. You will obviously mention that you were from NZ but now live in the UK. They may ask if you have a NZ passport why have you not used it. You could then just say that you have got used to using your UK passport and did not think about it until you were on the plane.

 

What the NZ government are doing is making deliberate non payment of a student loan a criminal offence. It is only on that basis that they could possibly stop and interview someone at a border. I don't think the border officers would have access to a database checking for names.


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to those with little assets in the UK I would HIGHLY recommend a NZ insolvency.

This won't apply to you in the UK just in NZ and will wipe your loan.

The NZ governments approach to all stick and no carrot makes this an appealing option.

Check out the insolvency website where you can do this from the UK.

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What is the insolvency website, had a look but not sure I have found the right one. I am considering this way too, have been making payments as I can afford but on a low income and cant keep up with payments either, my family live in nz so disappearing is not an option. Def agree with all its such a draconian approach, attempting to make profits from young students and then blaming the students when it all goes belly up!!

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Helen

 

You need advice from someone qualified in New Zealand.

This is a UK site and you would be very lucky to find someone with the knowledge you need.

 

My advice for what it is worth, is to contact the student loan people in NZ.

Advise them of your situation and ask for their help about the options you have.

Perhaps they have some details of insolvency procedures you can use.

I suspect it is not that easy.


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Hi, sorry wasnt very clear. I live in the UK and I am touch with the IRD and make payments twice a year but cant keep up with the interest.

 

I have talked till Im blue in the face to the IRD but they will not do anything to make it easier the loan just keeps growing.

 

I am interested in whether i can start insolvency proceedings from the UK while remaining living in the UK.

 

Any advice from anyone who has done this or knows anything about it is very much appreciated.

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I am not sure you could include a NZ student loan in a bankruptcy outside of NZ.

I would be surprised.

 

Here is a previous thread.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?289666-New-Zealand-Student-loan-living-in-the-UK


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Many thanks for your help, seems there is no answer as the NZ govt are sticking their heads into the sand on this one. Will keep pursuing the Bankruptcy options :-)

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I have spoken to someone who is in a similar position and this is what they had to say...

 

 

 

Can't access whole thing but have an idea what this is all about. I'm in similar situation.

 

Why this has come about is that so many kiwis were getting educated and then left NZ to pursue careers overseas and in doing so thought they could avoid repaying student loan whilst overseas. Not all of them thought this way but those smart enough did.

 

It is a huge drain on NZ but it's also a vicious circle as most graduates need to leave NZ to work or get paid what their worth!!

 

The twice payments per year rule ($1k x2 pa) isn't bad, it's not great either. NZ IRD has attempted to make it as easy as possible for people to repay including bank fee free in some cases. Claiming insolvency probably isn't the best way to go.

 

Given most kiwis like to travel, one might ask why it's not possible for anyone to be able to afford the repayments? When you put it in perspective $2k is approx £1100 including transfer fees which is just under £92 per mth.

 

I've heard various rumors including "reciprocal" access to tax records which even under privacy legislation will be permitted if for the purposes of recovering "govt funds". I've also heard that those owing money who have not made any attempts now face the risk of being arrested on arrival back to NZ and also risk having their passports confiscated until monies repaid. All rumors though so not sure if any truth in this?

 

Not sure if that helps?

 

 


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Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

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Hi thanks for the reply.

The problem is the interest.

I owe 65000 and have to make payments of £208 a month which is a lot of money when your on a low income

( not all students are over here making loads as the govt like to make out)

 

even if I could make these payments,

they only just cover the interest charged each year so there is absolutely no incentive to get a weekend job and work 7 days a week to meet payments when the loan isnt getting any smaller.

 

What the govt need to do is work out an individual agreement for every student based on their income and amend interest rates to ensure that the loan is manageable.

 

If they are prepared to throw money at young students

(and they do make it very easy)

(and of course all young people want to better themselves if they can)

then they must accept that many wont make it big and wont be able to pay back a loan.

 

I do believe the current situation is unfair and extremist.

I originally left NZ to work to pay off the loan but never got a great job that paid well enough to keep up with the loan.

 

I know you said your in the same boat so would love to hear what you think about this.

I really dont want to go down the road to bankruptcy but cant see another solution right now.

 

What really amazes me though is the lack of understanding of the IRD,

you are treated like some kind of criminal.

 

Even the evil banks are willing to re-negociate mortgage loans if people are struggling but the IRD wont even listen,

they just keep repeating like a mantra "if you cant meet your payments you can be arrested" Arrghhh

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What is the insolvency website, had a look but not sure I have found the right one. I am considering this way too, have been making payments as I can afford but on a low income and cant keep up with payments either, my family live in nz so disappearing is not an option. Def agree with all its such a draconian approach, attempting to make profits from young students and then blaming the students when it all goes belly up!!

 

 

You can absolutely apply for insolvency from outside New Zealand. A friend of mine used this option and is now student loan free.

 

insolvency.govt.nz

Register here. I cannot recommend this option enough for those without sizable assets.

 

Send the NZ government a message.

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Thank you adviceguy111, thats great info I will have a look at the website :-)

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Thank you adviceguy111, thats great info I will have a look at the website :-)

No problem.

I still recommend seeking independent advice but if you have no other option it's great for those overseas as the conditions of bankruptcy are mostly not enforceable unless you have stacks of assets the IRD can go after.

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This might be of interest.

 

http://a.ir.smartmailpro.com/webv/ogaa4o0m2

 

 

 

Student loan changes from 1 April 2014

 

Changes to student loan legislation are set to affect all student loan borrowers from 1 April 2014. There are changes around the types of income and adjustments you need to tell us about, and changes to repayment obligations if you’re overseas.

 

We now receive contact details from overseas adult passport applications and renewals from the Department of Internal Affairs, so we can contact overseas-based borrowers who are in arrears. If you’re significantly behind on your repayments, and don’t have a payment arrangement with us, you may be stopped from leaving New Zealand if you come home for a visit

 

 

 

It is from the NZ Inland Revenue (newsletter) , loads of information regarding Student loans.


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Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

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1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy -

HERE

2: Take back control of your finances -

Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors?

Read Here

4: Staying Calm About Debt

Read Here

5: Forum rules - These have been updated -

Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

 

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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In this situation I can see people giving up their NZ passport and instead applying for British or Australian ( or wherever) Citizenship. Once they become a citizen of another country, NZ cannot stop them at the border related to any student loan issue.


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Hi Donna

Our situations are almost identical in terms of arriving in 2012 & the principal being almost the same.

 

I am heading home soon with my family for a holiday & don't want to risk being stopped on my departure.

 

As I have received no letters,

I have no idea how much I owe.

 

Before I ring IRD I was hoping you could give some indication of the amounts you are expected to pay back & how.

 

I did try to send you a private message but the website would not allow me.

 

It would be great to correspond/chat.

Katie.

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Hi Katie - I've only just seen this now.

 

As of the 1st April 2014,

the IRD have raised the minimum overseas repayment from $3000 to $5000.

They are asking for it to be paid as 2 payments of $2500 at the end of March and April

- this will start in 2015.

 

I have penalty arrears of $16018.00, and I have set up a repayment plan to repay these.

I have agreed to repay $390 a month until August 2017 ( the maximum length they were able to agree to).

 

The $5000 and any extra repayments I make would come off the principal.

So, with the monthly repayment plan and budgeting for the minimum overseas repayment,

I'm looking at $806/ £403 a month.

 

It's a lot but thankfully,

I don't have any other debt so I can afford it, but only just!

 

If the NZ government raises the minimum payment again and the NZ dollar becomes stronger against the pound, then it'll become difficult.

 

I did ask about what would happen if I struggled making payments in the future,

and was told that you could go down the financial hardship route,

where you would have to provide evidence of your finances, living costs etc

, and they may consider reducing or wiping out any loan arrears.

 

Payments can be made through a uk online transfer company called Orbit Remit (recommended by the IRD).

They never charge for payments made to the IRD,

regardless of the amount of the transfer.

They also appear to have competitive exchange rates,

and it's a straight forward process.

 

The IRD were helpful when I contacted them and did explain things clearly.

However, I'm not sure how friendly they would have been had I not been in a position to agree to their proposed repayment plan.

 

I had the payment plan in place before traveling back to NZ but hadn't made any payments as they were not due to begin until after I returned to the UK.

I was told by the IRD that because I had a plan in place, that I would not encounter any issues entering or leaving NZ, and I didn't.

 

Hope this has helped, please feel free to ask any questions

 

I should point out that the $5000 minimum overseas repayment is for those with a loan debt of more than $60,000

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