Student Loan - Loans and Debt Consolidation

That loan has spun out of control and looks set to plague the New Zealander for the rest of his life.

Five years ago the original $7000 had risen to $157,000 and was accelerating so fast Trev fears the total is likely to be approaching $250,000 by now.

He cant face looking anymore and as he hasnt a hope of affording the huge monthly repayments, he has decided to put his head in the sand.

He would like to move his family home one day but says he cant and his children are missing out on seeing their New Zealand grandparents.

That small mistake in the early 1990s has long-term repercussions affecting generations, he says.

Trev is 39 now and is one of the thousands of overseas students the New Zealand Government says are not repaying their loans.

Tracking people down and sending in the debt collector is something they are investigating.

Many of the students with huge unpaid loans are those who have undertaken expensive degrees which promise high-paying jobs, such as medicine, but not Trev.

His horror story goes back to the early days of loans when interest was charged. All he borrowed was $7000.

Trev is a smart guy with a good job in ...[more]