At LCollect we believe that knowledge is power. Every month our debt collection blog gives you practical tips, stories and news from around Australia and the world.
In New Zealand an interesting paradigm exists where the amount of Student Loans owed by New Zealanders now living overseas is around NZ$183 million, as opposed Student Loans owed by New Zealanders living within NZ around NZ$142 million. The amount overdue by the expats has increased by 60% in 3 years, whilst the amount owed by the locals has decreased by 26%.
Given the huge increase in the Expats, it almost appears that it was a known loophole being exploited by some.To combat this problem, the NZ Government has widened its collection net to chase down 50,000 expats living in Australia and the United Kingdom.
A previous pilot scheme aimed at 1,000 former students in Australia netted the NZ Government NZ$4.7 million in 10 months, with payments of up to NZ$60,000 at a time when contact was made about the debts.