Expats urged to repay student loan to help Christchurch

Sir Paul Callaghan, 2010 New Zealander of the Year and Victoria University professor of physical sciences, says Kiwis living abroad should pay their student loans to help Christchurch.

Sir Callaghan’s Heroic Educated Kiwi Expatriates campaign (HEKE, which means ‘to reduce’ in Maori) is an appeal to more than 85,000 overseas debtors to help with the estimated $30 billion recovery bill.

He particularly appeals to 35,000 Kiwis abroad who are behind in their repayments.
New Zealand graduates living abroad have a median debt of $17,900 – a total debt of over $2 billion.

Callaghan says, “If this is something you can’t manage financially, don’t worry about it, but if you can, have a think about it.” He says it was a good opportunity to be rid of ever-increasing debt – which attracts 6.6 per cent interest a year.

“It’s in your own interest, but an opportunity to be seen as a hero.”
The campaign is backed by politicians, educators and the Reserve Bank governor.

Reserve Bank governor Alan Bollard agrees with Callaghan’s proposal. Money coming from outside the country made “a lot of economic sense”, says Callaghan.

He encourages the Government to consider directing repayments straight to Christchurch, and making it easier for graduates to repay loans, with reduced or no interest.

Callaghan established the campaign after seeing the involvement of young people in the quake cleanup, such as Canterbury University’s student army.

Since a campaign began to track down debtors in Australia at the end of last year, $1.2 million had been repaid, he said.