'Moving overseas is not a way to hide from your student loan obligations.”

That's the word from Revenue Minister Judith Collins, as more student loan defaulters start paying up.

Since December 2014 there has been a 66 per cent increase in the number of overseas borrowers who are behind on their payments getting in touch with Inland Revenue.

In the same period there has been a 32 per cent increase in the number of defaulters who are now making a dent in their loan. Repayments by those who defaulted increased by $24.5 million for the year ended December 2016.

Tertiary Education, Skills and Employment Minister Paul Goldsmith says since the overseas-based borrower compliance initiative was established in 2010, borrowers have made an estimated $361 million in additional repayments, as of December 2016, with more than $100 million of that in the last financial year.

'We know repayment times for overseas borrowers are much longer than for those residing in New Zealand, and that they account for more than 90 per cent of the roughly $1 billion currently in default,” says Paul.

'It is vital for overseas borrowers to make a plan with Inland Revenue to repay their loan.”

Judith is pleased to see the recent data match agreement with the Australian Tax Office proving successful.

'Inland Revenue has been provided with the contact details for almost 57,000 borrowers, which has already resulted in some large payments to Inland Revenue,” she says.

'I strongly advise any student loan borrower planning their OE to contact Inland Revenue before they leave. Sorting out a workable repayment plan in advance could save headaches later on.”

Paul says the significant investment made by taxpayers in tertiary education and the student loan scheme means around 82 per cent of the cost is shouldered by taxpayers.

'So it is important borrowers make arrangements to repay their loans.”