Recent figures have revealed that 50 New Zealand borrowers owe over $11 million of debt in student loans.
This includes eight who each owe more than $280,000. These figures have surfaced with the government’s 2011 Budget, which aims to significantly cut costs of government spending in wake of the Christchurch earthquake recovery. Part of this recovery effort involves stepping-up efforts to recall outstanding student loans.
NZUSA co-president, Max Hardy said that the 50 biggest debtors were not indicative of all graduates. The median loan balance is $11,900.
Several changes were made to the student loan scheme in the new budget: students over 55 are no longer able to get student loans to cover living-costs; part-time students are not able to get course-related costs; and the overseas repayment holiday period will decrease from three years to one and borrowers must apply and provide a contact person.
New Zealander of the Year and Victoria Physics Professor, Sir Paul Callaghan has recently launched ‘Heke,’ a campaign that appeals to the 85,000 Kiwi graduates living abroad—who owe over $2 billion—to pay back their student loans.