The New Zealand Herald reports that revenue minister Peter Dunne has compared indebted former students who now live overseas to refugees.  Mr Dunne said the government is investigating using debt collectors to recover more money from student loan borrowers living overseas. He says most borrowers who lived in New Zealand were meeting obligations to pay money back.

“The problem is with people who go overseas.”

Some students were registered under the three-year holiday period, while others were avoiding coming home because they had not made repayments and now faced very high loans because of interest and penalties; “to some extent they are like refugees”, Mr Dunne said.

Mr Dunne may have been unaware at the time of his comments that the United Nations defines refugees as people who, owing to a well-founded fear of being persecuted, are outside the country of their nationality, and are unable to or, owing to such fear, are unwilling to avail themselves of the protection of that country.

If those former students are now feeling persecuted and unable to return, Mr Dunne is aiming to increase the pressure on them.

“We are looking at a range of options about how we pursue overseas student debt and that work is still being done,” Mr Dunne said.

“But there are others that have worked out because we can’t track them they don’t put their hand up.”

“It’s a fairness issue, why should New Zealand-based debtors repay on time and do very well – what’s the point if those living offshore can basically get away with it?”