Unpaid Student Loan Debt and Entry To NZ
I have been out of the country for almost 20 years and genuinely forgot that I have a student loan from one year of study in NZ.
I've read some terrible accounts of people who have accumulated masses of interest on what was originally a small amount and the Student Loans are unwilling to reneg the interest and allow the payee to make good on the original amount only.
Should I need to return home, will I be detained and allowed to leave. I am a stay at home mother and am not employed and could not bear the added cost of repaying a substantial loan with interest. Should I reach out to them or not bring any attention to this until I am in a position to pay off the debt.
What is the likelihood that I could renegotiate the amount owed to the original amount taken out which was about $5000.00.
I don't envy your situation. I foolishly took out a big loan and things got way out of hand. Here is the summary
- Don't bury your head in the sand, the IRD is extending its powers so that it can tap into Australian assets like super and so on.
- You can negotiate with the IRD and if you go to them they will waive all late penalties incurred. However they will not budge an inch on the principal or interest accumulated. It's in the legislation.
- Go to them with a plan of payments (they have a few fee free set up now in Oz), make sure they waive your penalties and then get rid of it best you can.
- If you go home to NZ get in touch with the IRD so it isn't a problem ie if you have a plan with them they won't keep you there. If did move home I believe that the interest will stop accumulating and you'll pay extra tax @ 12c in the dollar.
The system really sucks but we won't go into that. Good luck.