The message appears to be getting through to Kiwis with student loans who are now based overseas.

Inland Revenue received more than 20,000 additional repayments totalling $29.7 million during January and February – up 31 per cent on the $22.7m repaid during the same period in 2015.

Overseas-based Kiwis with student loans made $29.7 million in repayments during January and February of this year. File photo.

February was also a record month for lump sum payments with more than $2.2m paid, clearing 103 loans outright.

Inland Revenue believes the publicity around the first arrest at the border in January contributed to the increased activity.

Tertiary Education, Skills and Employment Minister Steven Joyce says that the threat of arrest most likely spurred number of people into action.

'It's just a pity that it takes these sort of steps to encourage some people to meet their obligations to taxpayers so we can continue to support future generations of students.

'Around 20 people are currently being actively monitored by Inland Revenue for possible arrest when they return to New Zealand.”

The net amount repaid by overseas borrowers totalled $184.7 million in the financial year to June 30, 2015. By the end of February of the current financial year $133.8 million has already been paid.

Since late 2010 the Government has run an overseas-based borrower compliance initiative which uses a range of tools to target borrowers in default.

This initiative is on track to reach its current target of lifting payments by overseas-based borrowers by $100 million a year.

Revenue Minister Michael Woodhouse says from July this year an information sharing agreement with the Australian Tax Office will be introduced to allow information on Kiwi student loan borrowers living in Australia to be shared with Inland Revenue.

'The majority of overseas-based borrowers live in Australia and this new agreement will be a significant step forward in speeding up the repayment of the estimated $3.25 billion borrowed by those living offshore,” Michael says.

'Inland Revenue will continue to target overseas-based borrowers who are in default and will use a range of methods to recover the money owed to New Zealand tax payers, including legal action when appropriate.”

Of the 112,390 overseas-based borrowers, currently 70 per cent are in default.

Anyone with outstanding debt should can contact Inland Revenue to organise a repayment plan or apply for a hardship grant.

For more information visit: www.ird.govt.nz/studentloans/