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Sir Paul Callaghan - Source: ONE News -
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Kiwi expats are being encouraged to pay off their outstanding student loans to help fund the rebuild of Christchurch.
It is estimated New Zealanders living abroad owe $2 billion in unpaid loans, and prompt payment could give the country an economic boost at a time when it faces a $7 billion repair bill for Christchurch.
New Zealander of the Year Sir Paul Callaghan is behind the campaign and told TV ONE's Breakfast it is a chance for expat Kiwis to do something amazing.
"There are a lot of young Kiwis abroad thinking 'what can I do to help the country?'"
"This is an opportunity, because if a lot of young people do this we'll talk about it for years to come. We'll talk about the time those young Kiwis saved their country and they'll be the stuff of legend," he said.
"I think it's the chance to be part of something kind of heroic and big. So it's turning this thing around from being an obligation to an opportunity."
There are more than 85,000 New Zealanders living overseas with student loans, and around 35,000 are behind with their payments.
"If one in 1000 respond to this then that will be $2 million, which is better than a cake stall so I think it's worth a shot," Sir Paul said.
Inland Revenue gives student debtors a three-year repayment holiday once they leave the country.
Sir Paul adds that if expats seize the opportunity and pay off their loans now, it could benefit them in the future too.
"We didn't handle the student loan scheme well. A lot of students were able to take large sums of money and then found they had significant interest rates.
"The tragedy for those who've given up on paying, is the interest is going to compound and if they ever come back to New Zealand they're going to find themselves in an awful debt."
Sir Paul is also worried about a permanent brain drain if graduates overseas do not start making repayments.
He said it will not be a joke if student debt keeps talented graduates from returning at a time when our population is aging fast.
Sir Paul emphasises that money that comes from off-shore will also really help the economy.
Around 4000 Victoria University alumni received an email this morning explaining the appeal, and there has been wide support for the idea.
Expat graduate Nicole Hetherington thinks it's a great idea.
"We've done a few other things for the earthquake so I think it is something that others would do, and you know it's money that they owe anyways," she said.
Sir Paul stressed the campaign was only targeting ex-students now living overseas, and he did not want to pressurise people to make a commitment they could not afford.
"I've made it clear in my appeal on the website that this is a humble appeal and I don't want anyone to do anything they feel they can't manage. I just want them to reflect on this potential opportunity to do something remarkable if they are able to," he said.
Letters will be be sent out to the overseas students and a website supported by a social media campaign will help spread the message around the world.
What do you think of the idea? Vote in our poll, and have your say on the messageboard below.
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Add a Comment:
Post new commentExpatEngineer said on 2011-04-26 @ 02:17 NZDT: Report abusive post
Student loans for rent and food create two classes of graduate. When you graduate one can not afford quality of life or to compete in the job market for low pay with others who could live at home while studying/entering workforce or are eager to immigrate to NZ. New Zealand, take an Aussie lesson and give everyone a Fair Go. For the record my Post Graduate studies earned NZ $1M per annum in increased export product sales. Consider that debt paid.
ExpatEngineer said on 2011-04-26 @ 02:15 NZDT: Report abusive post
Student loans for rent and food create two classes of graduate. When you graduate one can not afford quality of life or to compete in the job market for low pay with others who could live at home while studying/entering workforce or are eager to immigrate to NZ. New Zealand, take an Aussie lesson and give everyone a Fair Go. For the record my Post Graduate studies earned NZ $1M per annum in increased export product sales. Consider that debt paid.
blaize said on 2011-04-17 @ 17:58 NZDT: Report abusive post
It's simple. NZ can not actually stop people leaving as it's against the Declaration of Human Rights...
Sullir said on 2011-04-17 @ 14:39 NZDT: Report abusive post
I am not sure it's even about the Christchurch Rebuild particularly - anyone who agrees to the loan conditions must repay the debt - living at home or overseas - no question about it guys, you took the money to get your education paid for to enable you to get better jobs and much more money - without the education and degrees you would not be even getting those salaries, so get real and get honest and pay up.
John Proffitt said on 2011-04-17 @ 11:47 NZDT: Report abusive post
The focus should be to identify all those oversea's students who were not citizens of New Zealand who secured the loans then took off as soon as they qualified.