NSW How Can New Zealand Inland Revenue Recover Student Loans?

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reuben farmer

12 August 2016

I have an outstanding NZ student loan. Since completing my studies in NZ, I have changed citizenship and I now have an Australian Citizenship. After recently visiting NZ, I have since received a letter from NZ inland revenue re-paying back this loan.

My questions are:

(1) The amount of the student loans has increased from approx $10,000 to $44,000 based on interest over the years I have not made repayments. Can I request an assessment of this and offer to pay the loan on the amount I actually borrowed ie $10,000?

(2) What legal options do the NZ inland revenue have to recover the debt as I am now an Australian Citizen, i.e. can they stop me entering or exiting NZ or can they take in further through the Australian taxation system etc?

(3) I am happy to start making repayments but am unsure if I can legally offer to pay off the inital loan of $10,000 and not the $44,000 they are stating I owe.

Thank you for your time

Victoria S

Well-Known Member
9 April 2014
I very much doubt that you have a legal right to offer to pay them back simply the principal without interest. Read the terms and conditions of the loan, Im sure you will find them online somewhere.

Also due to a trans-Tasman agreement NZ entities can recover debts in Australia through Australian courts and visa versa.