New Zealanders move overseas for many reasons - for whānau, for work, for study, for experience and much more. Almost all retain links to Aotearoa and most plan to return at some point in their lives. Many have studied and have a student loan.

In April 2025, the government raised the interest rate on student loan balances for overseas-based New Zealanders to 4.9%. Originally this was scheduled to rise to 3.9% in line with inflation, but the government arbitrarily added an additional 1% on top.

Unlike student loan repayments for those living in Aotearoa, those repaying from overseas pay a lump sum. It is not a proportion of their income. This means many New Zealanders living overseas are at risk of being stuck in vicious debt cycles where they can barely pay off the annual interest.

The Green Party surveyed over 400 New Zealanders in 23 countries:

• 78% did not think they were making meaningful progress on repaying their student loan
• 82% percent were worried or extremely worried about their student loan.
  

You can read the report here.

In 2011, student loan debt overdue from overseas-based borrowers was $289 million. In 2025 it is $2.193 billion.

In 2011, the number of overseas-based student loan borrowers with overdue payments was 52 percent. In 2025 it is 71 percent.

The system is not working for anyone and needs reform. We are asking for an inquiry to be opened to investigate this issue, with the voices of overseas-based New Zealanders included. 

Read the Overseas Student Loan Report.

[Petition Begins]  

Tēnā koutou Education and Workforce Committee,

We are calling for a cross-party inquiry into the student loan repayment scheme for overseas-based New Zealanders. The system is unsustainable. Debt is ballooning. Borrowers are being stuck in debt cycles and our relationship with our overseas-based New Zealanders is being stretched to breaking point.

A scheme that sees overdue debt balloon from $289 million to $2.193 billion in less than 15 years is clearly not working. There has to be a better way. It is in the government’s interest to find one.

An inquiry should investigate what has gone wrong with the current scheme and to investigate and propose alternatives that offer equitable outcomes for all our overseas-based New Zealanders, regardless of their means or personal circumstances. Their voices should be at the heart of this inquiry. Any repayment scheme should sustain and nurture the relationship between the government of Aotearoa and our people living overseas. 

We are calling on you to:  

• Open a cross-party inquiry into the student-loan scheme for overseas-based borrowers
• Ensure the voices of overseas-based borrowers are at the heart of this inquiry.

Sincerely,

The Undersigned

[Petition Ends]

Reference: Student Loan Scheme Annual Report 2023-4