Arrest Sends Chilling Message
The New Zealand Union of Students’ Associations (NZUSA) is warning that the recent arrest of a student loan borrower as he left New Zealand for his home overseas sends a chilling message.
“We are concerned that this will turn those who are overseas with student loans into permanent refugees, and do little to encourage further compliance with the student loan scheme”, said Laura Harris, Acting Spokesperson for NZUSA.
There are currently 130,000 people overseas with student loans and Inland Revenue report that seventy percent of them are considered to be behind in their payments.
“There are clearly issues with the scheme if an overwhelming majority of the participants are non-compliant and the government needs to look at this before enforcing this draconian measure,” said Ms Harris.
“The right to freedom of movement and to a passport is a fundamental one enshrined in the International Covenant on Human Rights, and should not be broken over a debt – especially given New Zealand effectively abolished imprisonment for debt over one hundred years ago.”
“There are two main enquiries to the NZUSA office on this issue, the first is from borrowers who are faced with compulsory fixed amount repayments based on the size of their loans instead of their income, and which they find unaffordable. The second is from parents of overseas-based borrowers who fear they will never see their children again. This does nothing for either of those concerns.”
“Instead it sends a chilling message that student loan borrowers are cannon-fodder as the government plays at populist politics.”
ENDS