Budget 2013 Changes to Student Allowances and Loans

The following proposed changes were also announced that will affect students when they commence repayments (subject to legislation to be introduced later in 2013):

• From 1 April 2014, Inland Revenue will be able to request an arrest warrant for borrowers who knowingly defaulted on their overseas-based repayment obligation and are about to leave New Zealand.
• An information sharing agreement between Inland Revenue and the Department of Internal Affairs will be implemented, once the relevant regulations have been approved later in 2013, to allow sharing of contact details for overseas-based Student Loan defaulters when they renew or apply for their passport.
• Changes to the overseas-based borrower repayment rules from 1 April 2014:
  • Fixed repayment obligations from when borrowers leave New Zealand.
  • Two additional steps to the current overseas-based repayment regime.