Woman arrested at airport over student loan debt

The Government says arresting student loan debtors at airports is an ‘‘absolute last resort’’ but it is not a policy that will be changed any time soon.

The comments came after a woman was arrested at the border over her student loan, reportedly while trying to return to her home overseas. Police confirmed the woman, who had been visiting New Zealand, was arrested as she attempted to fly out of Auckland International Airport on Friday.

Inland Revenue said it could not confirm any other details because of secrecy obligations under the Tax Administration Act.

It is the first arrest over student loan debt in 2020.

Duty Minister Phil Twyford said an arrest at the border was an ‘‘absolute last resort’’ but the Government was not currently considering changes to the policy.

‘‘Our priority is to make education more affordable,’’ he said.

Police were alerted to the woman’s presence at the airport via a border alert, Senior Sergeant Laurie Culpan said.

Legislation introduced in 2014 gave Inland Revenue the authority to apply for arrest warrants for student loan defaulters leaving the country. However, this is considered a ‘‘last resort’’ after all other avenues have been exhausted, an Inland Revenue spokeswoman said.

Three alleged student loan defaulters were arrested in 2016, one in 2017, two in 2018 and two in 2019. The first arrest following the law change was Ngatokotoru Puna, the 40-year-old nephew of

Cook Islands Prime Minister Henry Puna. Ngatokotoru Puna had racked up $130,000 in student debt after completing a Bachelor of Arts at Auckland University, then moving to Rarotonga.

Borrowers overseas are required to make minimum repayments. In 2018, overdue student loan debt was $1.5 billion, with overseas-based borrowers owing 91 per cent of that.