Expats urged to pay back student loans for Chch

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Tue, 29 Mar 2011 5:09a.m.

The debt of expat students could prove a huge financial boost to the recovery effort

The debt of expat students could prove a huge financial boost to the recovery effort

By Deanna Harris

Expat Kiwi graduates are being urged to make a ‘significant contribution’ to the Christchurch earthquake recovery by paying back their student loans.

New Zealander of the Year Professor Sir Paul Callaghan is leading the Heke (Heroic Educated Kiwi Expatriates) project campaign and says the more than 85,000 New Zealanders with student loans living abroad can provide a huge financial boost to the recovery.

"The brutal reality is New Zealand needs billions to rebuild Christchurch. I am asking expat Kiwi graduates to help their homeland by making repayments to their student loan,” says Mr Callaghan.

  • Click on the video tab to view a YouTube video posted by Professor Sir Paul Callaghan.

New Zealand graduates living abroad have a median debt of $17,900, a total debt of over $2 billion.

“That represents nearly 30 percent of the $7 billion that New Zealand taxpayers will have to contribute through the Government's contribution to the rebuilding.

“If we were to get everyone to contribute even a little, then the effect would be hugely helpful,” says the distinguished physicist, who was knighted in 2009.”

Mr Callaghan says it is not just good for the recovery, but makes good financial sense since graduates overseas do not qualify for the Government’s zero-interest loan policy.

“Many have given up any thought of paying, and for them, a compounding interest bill will cause a debt burden that makes it harder to return to work in their homeland, only to be called upon by IRD to service and repay that debt. Thus, New Zealand loses twice over.”

In a letter to expats, Mr Callaghan is appealing to an “expat sense of patriotism” and asks graduates to consider the value of their New Zealand education to their present employment abroad.

“We need only look at Egypt, or the volunteer student army in Christchurch, to see that young people can achieve remarkable results when motivated by a sense of making history en masse, assisted by peer influence and social networking.”

Click here for more information about Heke, which means ‘to reduce’ in Te Reo, or follow the campaign on Facebook and Twitter.

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Comments

29 Mar 2011 09:43p.m.

Someone wrote:

@debt free- you obviously haven't understood a word I've said. And no a student loan is not the same as any other loan For starters a bank would never lend to a 16 year old and why is that do u think? Any ideas? All I'm saying is the government should at least be vetting student loan applicants more closely taking into consideration socioeconomic and schooling history and the likes to determine the students Genuine interest and awareness of what's involved. There's a lot more to this than getting a loan and paying it off. A bank don't give out loans Right left and center. They vet your suitability and Ability to repay.

29 Mar 2011 03:33p.m.

debt-free wrote:

@ someone: Just a couple of points. You are responsible for paying back a loan if you take one out - it's disingenuous of you to take one out if you thought you'd never have to pay it back. Why are student loans any different from other loans?

Also, I paid my way through university without payouts and without getting into debt. This was only possible because the NZ govt subsidises our education much more than most other countries, eg. when I looked at studying in Australia, the cost was at least 3 times as much (even though NZers are considered local students).

Enough with the victim mentality!

29 Mar 2011 10:57a.m.

someone wrote:

cant believe it..that is just fine and dandy coming from him, someone who benefited from free education. The government is irresponsible and gives student loans out like candy. My situation is - $45k debt just returned from 13 years abroad. My initial debt was $18k. I obtained my students loans well before the age of 18 with the encouragement of a family member who was not interested in anything but getting their hands on my living expenses lump sum when it came in. I was manipulated into getting a student loan with the idea Id be out on the street if I didnt (long story) so whats the answer to my problems? get a student loan..couldnt even finish the course as I had no money to get to the damn thing, but at the time it solved my problems - the government refused to pay me independent youth benefit so what else could I do? I was so naive about it all - even when I left for the UK 13 years ago..I was under the impression I didnt have to repay unless I earnt a nz based income over a certain threshold. I was even told by a family member 10 years ago it had been scraped. Young stupid and naive, thats what I was....why not give a credit card and a mortgage to a 10 year old and tell them to manage the repayments..there is so much more I could debate on this issue with idiots who propose that getting a student loan is along the same lines as any other financial debt...because its not...Education should be free, for the sake of this country it should be at least if the government wants to improve the economy and keep kiwis here. A student loan debts compromises my position to obtain a mortgage and other benefits as a kiwi I am entitled to. Its ok to help the cantabrians but its only going to cause poverty and greif elsewhere.

29 Mar 2011 09:47a.m.

Kiwi wrote:

Yeah Right!

29 Mar 2011 08:23a.m.

Gary wrote:

Good luck with that!

29 Mar 2011 06:52a.m.

Henry wrote:

Professor Sir Paul Callaghan, needs to get his facts right.

Insurance companies are paying for the Christchurch rebuild and not the government.

To use Christchurch as an excuse to promote this scam is extremely low indeed.

The government has two jobs in Christchurch, to fix the roads and the schools.

And insurance companies will pay for the schools as well.

Using the tragedy in Christchurch as a reason to push a revenue drive it just low.

The government is contributing very little to the christchurch rebuild, the 5 billion that its costing the government is lost revenue.... not money they are putting into rebuilding Christchurch.