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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Penalties and offences - Offences

162B: Arrest of liable person

You could also call this:

“The court can stop you from leaving New Zealand if you haven't paid your student loan”

If you owe money on your student loan and you’re about to leave New Zealand, a judge or court official can order your arrest. This happens if they think you’ve broken the law by not paying your loan and trying to leave the country.

If you’re arrested, you’ll be taken to court quickly. The court can make you do several things if they think you’re really trying to leave without paying. They might tell you to pay what you owe right away, make a plan to pay it, or give something valuable as a promise to pay. They could also stop you from leaving New Zealand, take away your travel documents, or ask you to give them information.

The court can do these things even if there are other ways to get the money you owe. They can also tell other government departments about their decision.

If the court tells you not to leave New Zealand or takes your travel documents, and you still try to leave without paying your loan, you’re breaking the law. You could go to jail for up to 3 months or pay a fine of up to $2,000.

You can ask the court to change their mind about their decision. If they agree, they might give you back your travel documents.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5991316.

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Education and learning > Higher education Money and consumer rights > Banking and loans Crime and justice > Courts and legal help Crime and justice > Criminal law
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162A: Offence for default of overseas-based repayment obligation, or

"You can get in trouble if you don't pay your student loan while living overseas"

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Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Penalties and offences: Offences

162BArrest of liable person

  1. A District Court Judge or, if a District Court Judge is not available and the case appears to be urgent, a Registrar may, on an application in writing by the Commissioner, issue a warrant for the arrest of a person (the liable person) if the Judge or Registrar (as the case may be) is satisfied that the person has committed the offence in section 162A and is about to leave or attempt to leave New Zealand.

  2. The liable person must be brought as soon as possible before the District Court, which, if it is satisfied that the person is about to leave or attempt to leave New Zealand without making reasonable efforts to pay the amount in default or without making arrangements with the Inland Revenue Department to pay the amount in default, may order that the liable person—

  3. pay the amount in default:
    1. make arrangements with the Inland Revenue Department to pay the amount in default:
      1. give such security (including the provision of sureties) for the payment of that liability as the court specifies:
        1. not leave New Zealand without the written permission of the court:
          1. surrender to the court, for such period as the court specifies, any travel documents or tickets in the person's possession:
            1. provide the court, within such period as the court specifies, with any information the court thinks appropriate.

              1. To avoid doubt, the court may make an order under subsection (2) even if the Commissioner is able to recover the debt by other means.

              2. On making an order under subsection (2)(d) or (e), the court may direct the Registrar to give notice of the order to such departments of State, offices, or persons as the court or the Registrar thinks appropriate.

              3. Every person commits an offence and is liable on conviction to imprisonment for a term not exceeding 3 months or to a fine not exceeding $2,000 who—

              4. is a person against whom an order is in force under subsection (2)(d) or (e); and
                1. is in default of his or her overseas-based repayment obligation; and
                  1. either—
                    1. leaves New Zealand; or
                      1. attempts, or does any act with the intent, to leave New Zealand.

                      2. A person against whom an order under subsection (2) is in force may apply to the court for the discharge of the order, and the court may, if it considers it just or appropriate, discharge the order accordingly.

                      3. If the court discharges an order made under subsection (2)(e), it must direct the return of any travel documents or tickets surrendered pursuant to the order (unless the court grants a new order under subsection (2)(e) in relation to the same documents).

                      Compare
                      Notes
                      • Section 162B: inserted, on , by section 8 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
                      • Section 162B(2): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).