We're not the only ones

**James Deuce** · 12th November 2009, 06:38

Interest on Student Loans is before Parliament.

Because ex-students aren't paying their loans back fast enough and there's 10 billion tied up in student loans.

How does that address the root cause of the issue, you know, most unemployment in 15 years and most of our ex-students head off overseas almost instantly, if they know what's good for them?

The solution is simple.

Do what Norway does. Your student loan costs you nothing if you stay at home, earning and paying tax.

Go live overseas and you have to pay it back with interest.

This government has gone insane. 'We want 10 billion back from those bludging students. The good ones have already left, so we'll chase the fair to middling ones away as well by charging them interest."

That'll work.

**Usarka** · 12th November 2009, 06:44

We'll also give the remaining few good ones more incentive to live somewhere betterer.

**merv** · 12th November 2009, 07:00

Agree entirely Jim a bond kind of arrangement would be best for all to give them incentive to stay here and work for a while.

**Cajun** · 12th November 2009, 07:10

Originally Posted by James Deuce

The solution is simple.

Do what Norway does. Your student loan costs you nothing if you stay at home, earning and paying tax.

Go live overseas and you have to pay it back with interest.

This happens now, if you are living in NZ and paying your loan back, no interest is charged in your student loan,

If you are not in NZ interest is charged.
----

One thing there is no reason to pay back the loan early, so you just make the minimum payments which automatically come out of your wages. If there was an insenive to pay it early i would have, but since there wasn't, i took 5 years to pay back $12,000.

Note: i only just finshed paying my student loan back, earlier this year, so this is from my expernice

**MisterD** · 12th November 2009, 07:11

The fairest (as well as simplest to administer) would be to stop the interest-free status of student loans but make repayments for an NZ resident tax-free (ie they come straight out of your wages before tax).

They should do the same thing for contributions into a personal pension scheme too, but that's another discussion....

**sidecar bob** · 12th November 2009, 07:12

Originally Posted by James Deuce

This government has gone insane. 'We want 10 billion back from those bludging students. The good ones have already left, so we'll chase the fair to middling ones away as well by charging them interest."

That'll work.

I guess theyre only trying to pick up the pieces that the previous Santa Claus government left them, as best they can.

**James Deuce** · 12th November 2009, 07:18

Originally Posted by Cajun

This happens now, if you are living in NZ and paying your loan back, no interest is charged in your student loan,

If you are not in NZ interest is charged.
----

One thing there is no reason to pay back the loan early, so you just make the minimum payments which automatically come out of your wages. If there was an insenive to pay it early i would have, but since there wasn't, i took 5 years to pay back $12,000.

Note: i only just finshed paying my student loan back, earlier this year, so this is from my expernice

No it doesn't. Norway have organised treaties with most countires that their ex-pats go to, including NZ and Australia. Their loan doesn't sit at home accruing interest, the relevant country's tax authorities extract it from the ex-students income in their new found homeland.

It's easy to evade a NZ student loan. Get naturalised in your newly adopted country and never, ever come back.

**RantyDave** · 12th November 2009, 07:50

Originally Posted by sidecar bob

I guess theyre only trying to pick up the pieces that the previous Santa Claus government left them, as best they can.

I note that nobody is saying this about ACC.

**RantyDave** · 12th November 2009, 07:51

Originally Posted by James Deuce

Norway have organised treaties with most countires that their ex-pats go to, including NZ and Australia.

We have tax treaties (double tax agreements) with most of the major players. No doubt we could tag this on...

**Mully** · 12th November 2009, 07:52

Originally Posted by James Deuce

Do what Norway does. Your student loan costs you nothing if you stay at home, earning and paying tax.

Go live overseas and you have to pay it back with interest.

I've been thinking almost exactly the same thing for about $5 Billion....

You work in NZ (in the field you studied in) and a percentage of your loan is wiped annually, say 10%.

Doctors or teachers in hard to staff areas could get more, say 15% per year

I don't know why it wouldn't work - it's not like they're ever going to collect the vast majority of that $10 Billion now.

**Swoop** · 12th November 2009, 14:23

Seeing more attention given to those "students" who enrol on a course and then have sporadic attendance (at best) and then fail the course, would be nice. Why they should be entitled to taxpayer funding for this "lifestyle choice" is perplexing.
The student allowance provides part of their income while they work on "other enterprises" and have a jolly good old time.

**Thaeos** · 12th November 2009, 17:02

Originally Posted by Swoop

Seeing more attention given to those "students" who enrol on a course and then have sporadic attendance (at best) and then fail the course, would be nice. Why they should be entitled to taxpayer funding for this "lifestyle choice" is perplexing.
The student allowance provides part of their income while they work on "other enterprises" and have a jolly good old time.

Except the vast majority of students aren't eligible for the allowance, and as far as I'm aware if you don't consistently pass at least 50% of your papers, then studylink doesn't pay your fees anymore.

**Hopeful Bastard** · 12th November 2009, 17:09

As a student who was attending a course and on Student allowance/loan i think some of the replies here are rubbish and the course that the government fags are taking is bullshit. I left my course after completing the first half, Which, I have been awarded for with a Certificate in that course. Just didnt finish my diploma status.

I wasnt having a Jolly good old time. i was only getting 160 a week on student allowance. Take board of 60 out of that. then take fuel of 60 out of that. and then take out the cost of buying food for lunch outta that and the occasional field trip. I was left with about $2 a week. Sometimes, I was left Overdrawn.
Since my leaving, I have continued to get my student allowance which as soon as i find a job, I WILL be paying back.

Dont think i have earnt your hard payed tax? I worked for 2 and a half years. And since i left my course i have been looking and looking for a job. So i am sorry if you feel nothing but anger towards me. But how about you leave your job and lose money each week. And then try and get back into the workforce WITHOUT going back into the industry you just came from.

Now, For the government. I bought my bike so i would be able to SAVE money to pay back their stupid loan. So if they want their money back, They can take it the $300 extra i would be paying outta my rego!

**Hopeful Bastard** · 12th November 2009, 17:12

Originally Posted by Thaeos

Except the vast majority of students aren't eligible for the allowance, and as far as I'm aware if you don't consistently pass at least 50% of your papers, then studylink doesn't pay your fees anymore.

The majority of students that arent available to get a loan is mainly due to their parents earning too much.