A former Dunedin student living overseas says trying to repay her ballooning debt balance is real - and stressful.
Catherine (not her real name), has more than $30,000 in student debt. And she is struggling.
She finished her nursing studies at Otago Polytechnic in 2013 and had a hard time finding a job in the field straight away.
"They've trained too many nurses,'' she said.
She decided to move to London, where her sister lives. But once Catherine got there, she realised it was going to be complicated to get registered as a nurse.
She found alternative work, but "obviously, [I was] on a lot less than I thought I would be''. Plus, she was trying to get registered as a nurse at the same time.
"And then, obviously, I started getting letters [from the Inland Revenue Department].''
Former students living overseas with outstanding debt have a six-month grace period where the debt remains interest free - as it is when the borrower is living in New Zealand. But after that, the interest starts stacking up - and fast, Catherine said.
In response to a request for comment, an IRD spokeswoman said borrowers with overdue payments should get in touch.
"Often in cases of hardship, we will take into account the borrower's income and living costs,'' she wrote.
"If she is struggling to make repayments, we would encourage her to contact us to look at something more affordable ...
"The sooner we can have a discussion with a borrower about their obligations and ability to make repayments, the sooner we can address the late payment interest that is charged - often this can be reduced.''
But Catherine said her experience with the IRD had been quite different.
"I emailed [the IRD] and tried to call them, because I knew I couldn't make the full lot - I was going to put a certain amount in each week,'' she said.
"And they basically just said I had to [make the payments] and if I didn't, interest and penalties would be put on."
Catherine is one of thousands of former students living overseas who have been thrown into the spotlight after Ngatokotoru Puna was arrested at Auckland Airport last month for failing to repay more than $130,000 in student loans.
Mr Puna had not been in touch with the IRD for at least a decade.
Catherine had not been aware what happened to Mr Puna, or the public backlash condemning student borrowers that followed his arrest. But she said it did not seem fair to tar all former student debtors with the same brush.
"Judged for being a criminal because you're travelling for a few years and can't afford unrealistic interest ... [seems] unreasonable and unfair.''
She said she had every intention of paying off her loan once she was in a stable financial situation. But the situation she found herself in was "a bit tough''.
"It kind of makes you not want to come back, because you're scared to,'' she said.
Catherine's mother, who lives in Dunedin, has similar concerns.
And, she said, as long as former student debtors made payments on their loans commensurate with their financial means, there was no reason they should not be treated the same as student debtors living here.
She ended up making a payment on Catherine's loan, because she wanted her daughter to be able to come home for a visit in June.
She worked a second job at the weekend to be able to afford those kinds of expenses, she said.
And Catherine's mother said the entire situation was "anxiety-provoking'' - even for her.
"I want it to be OK for my kids because they're conscientious - they don't like having debt.
"They'd be shattered if they were considered criminals. There's nothing criminal about their behaviour.''
The numbers
Student loan interest for debtors overseas:
5.3% (to March 2016), $1590 on a $30,000 loan
Late payment interest:
9.3% (to March 2016) calculated monthly, $2675 on a $30,000 loan
Minimum annual payments for overseas borrowers:
$15,000.01-$30,000 = $2000
$30,000.01-$45,000 = $3000
$45,000.01-$60,000 = $4000
$60,000.01 plus = $5000
