National plans to ease student loan repayments for grads who stay in NZ
New Zealand's National Party has proposed a policy to reduce student loan repayment rates for graduates who remain in the country. Conversely, the party plans to implement stricter enforcement measures for graduates living overseas to recover unpaid loans.
Why it matters
The policy aims to address domestic talent retention while attempting to recoup millions in outstanding debt from expatriates.
<p>National is proposing Kiwis who move overseas and avoid repaying student loans should face tougher penalties - while easing repayments for the graduates who stay.</p> <p>If re-elected, the party's policy would cut the compulsory student loan repayment rate from 12 cents to 10 cents in every dollar earned above $24,128, from April 1, 2027, finance spokesperson Nicola Willis announced this morning alongside leader Christopher Luxon.</p> <p>The repayment cut is forecast to cost $438 million over five years, while National expects the tougher overseas enforcement to recover about $15 million a year.</p> <p>National estimates the repayment cut will cost $438 million over five years, most of it a one-off $283 million write-down of the existing loan book in 2026/27.
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