Article summary
In an opinion article published by interest.co.nz, tax specialist Dave Ananth explains how section 145A of the Student Loan Scheme Act 2011 provides a practical mechanism for the Inland Revenue Department (IRD) to resolve ballooning student loan debts owed by overseas-based borrowers. Highlighting that IRD made 73,732 file referrals to overseas debt collectors between the 2022/23 and 2025/26 financial years, Ananth notes that while enforcement creates pressure, traditional recovery methods often yield low returns on decades-old debts.
He explains that under section 145A—in conjunction with related statutory provisions—the Commissioner now holds discretionary power to write off equitable amounts of ordinary loan interest and cancel accrued interest once a borrower re-engages, makes a full financial disclosure, and agrees to a realistic lump-sum or instalment settlement. Emphasizing that this measure is not an automatic discount or amnesty, Ananth shares from his practical experience that when borrowers transparently provide their financial details and a serious proposal, the Crown can successfully collect substantial funds that might otherwise remain unrecoverable while helping individuals permanently resolve their historical debt.