Myth Number 1:
NZ student loan myth #1: I live overseas and don't have to pay because I don't earn anything. Student loan truth: Overseas-based borrowers have to make compulsory payments regardless of income (unless they have been granted hardship).
Myth Number 2:
Student loan myth #2: CCI or Baycorp contacted me about my NZ student loan. They say my debt is $x. Student loan truth: In most cases, that we know of, the amount demanded by CCI/Baycorp is only the overdue arrears part of the student loan debt. It is not the full debt. The full debt may be much more. Paying the amount demanded without first having full knowledge of the overall debt, and all of your options is like having cancer surgery without first trying to find out how big the tumor is.
Student Myth Number 03:
Student loan myth #3: They can’t arrest me if I travel on a foreign passport. Student loan truth: Yes, they can. If the IRD decides that someone is a student loan criminal, they can arrest them at the border no matter which passport they travel on.
Student Myth Number 04:
Student loan myth #4: I'm too frightened to travel home for Christmas. I don't want to be arrested. Student loan truth: Most people with overdue arrears are not going to be arrested if they come home for Christmas. But some people are at risk. In most cases, the people at risk have large arrears and have been warned that they might be arrested. If you are concerned, the best thing to do is to deal with your situation. The first step is to find out what your options are and then come up with a plan. Not dealing with the problem will make it worse and also causes lots of anxiety. If you start now there is a good chance that your student loan problem will be under control before Christmas and that you can travel without worry.
Student Myth Number 05:
Student loan myth #5: If I'm NZ bankrupt I can't come back at Christmas.
Student loan truth: All you have to do is to apply in advance for permission to leave New Zealand. In most cases, this is easy to get. If you are NZ bankrupt you must have this to leave New Zealand. We can help.