Student loan exile longs to come home

Glenn Watson | 31st May 2010

Aussie teacher Gavin Clifford would love nothing more than to live and work in New Zealand.

The problem is that his Wanganui-raised partner, Alice Nixon, fears she will be arrested if she returns home with him.

Ms Nixon, 29, left for Australia 10 years ago, leaving behind a hefty student loan.

With interest added, that sum has now blown out to $40,000.

Now Ms Nixon, also a teacher, says she wants to do the right thing and pay back the principle.

But she wants the interest written off, saying it's only fair as most student loans are now interest-free.

In a letter to the Chronicle, Ms Nixon writes:

"I belong to a generation of young New Zealanders who have attended university, received degrees and moved overseas but, alas, are fated never to return, due to mounting debt through accrued loan interest, a lack of accessible repayment information, heavy international transfer fees, and now the rumoured threat of asset seizure and jail time if we return.

"There is no doubt we are the guinea pig generation - caught between one generation who are now reaping the benefits of their free education and another who bask in interest-free loans.

"The majority of us are productive citizens.

"Some of us are doctors, lawyers, teachers; many of us have gone on to further education and all of us have accumulated a horrendously crippling debt.

"It's ridiculous to think of the money the NZ Government is spending trying to entice immigrants to ease the skills shortages when there are so many skilled New Zealanders living in student loan-induced exile overseas."

Ms Nixon teaches literacy, English and history and holds a position just below an assistant principal at a school in Victoria.

Her partner teaches media and English and is an IT coach to other teachers.

"Gavin has often tried to convince me to make the move back across the Tasman with him," said Ms Nixon.

"He visited New Zealand for the first time in 2007 and fell in love with the overwhelming greenness. Melbourne is gripped by drought and water storage is at only 30 per cent. New Zealand would definitely be an option, as we are considering starting a family."

Mr Clifford says he feels for his partner.

"It's such a shame that Alice has such a huge loan.

"It's not the primary amount that's the problem.

"We could pay that off very quickly. It's the incredible interest. It is higher interest than our home loan.

"I hope something can be worked out and we can then plan for a life in New Zealand."

Ms Nixon said her biggest frustration is getting basic information from Inland Revenue.

"They don't call you back, or they send you the wrong forms. In fact, when I first arrived in Australia, one IRD worker at home advised me not to come back, or worry about it when I came back.

"They make trying to make repayments for people overseas nearly impossible - forms, exchange rates, international transfer fees. When you compound all the costs of getting your money to them and then put interest on top, you are endlessly going backwards."

Yesterday an Inland Revenue staffer urged Ms Nixon to contact the department and discuss her loan. The staff member said it was unlikely she would be arrested at the airport but that she would be expected to repay the loan in full.

http://www.wanganuichronicle.co.nz/local/news/student-loan-exile-longs-to-come-home/3914955/