'Heroic' student loaners could pay for Christchurch

Sir Paul Callaghan with Prime Minister John Key. Photo / Steven McNicholl

Overseas students who repay their student loans will be "acting heroically" to help pay for the rebuild of Christchurch, New Zealander of the Year Professor Sir Paul Callaghan says.

In an open letter to the 85,000 graduates with outstanding student loans living abroad, Sir Paul has urged students to repay their loans, in particular the 35,000 Kiwis abroad who are behind in their repayments

While graduates still in New Zealand have interest-free loans, those abroad continue to accrue interest. New Zealand graduates living abroad have a median debt of $17,900 - a total debt of over $2 billion, Sir Paul said.

"That represents nearly 30 per cent of the $7 billion that New Zealand taxpayers will have to contribute through the Government's contribution to the rebuilding ... If we were to get everyone to contribute even a little, then the effect would be hugely helpful," he said.

Sir Paul, a physicist who was knighted in 2009, has started the Heke project - Heroic Educated Kiwi Expatriates - to encourage overseas graduates to pay back their student loans.

"If, like so many Kiwis abroad you feel frustrated in not being able to help Christchurch enough, then I would ask you to consider what I am proposing. If only a few respond, the effect will be significant, but if most of you do, then you will make history and your contribution will."

Sir Paul said the repayments also make good financial sense for the students.

"By reducing their student debts these heroes and heroines help New Zealand rebuild Christchurch. They also remove a barrier which prevents them returning to live and work in their homeland. We, their families, must welcome that."

Unlike New Zealand residents, whose loans are repaid automatically through the taxation system, overseas New Zealanders only repay if they volunteer to do so.

"Many have given up any thought of paying, and for them, a compounding interest bill will cause a debt burden that makes it harder to return to work in their homeland, only to be called upon by IRD to service and repay that debt. Thus, New Zealand loses twice over," Sir Paul said.

Heke is spreading word of the plea on social networking sites such as Facebook, and Sir Paul draws inspiration from recent student-led movements in New Zealand and abroad to show how collective action can provide hugely positive outcomes.

"We need only look at Egypt, or the volunteer student army in Christchurch, to see that young people can achieve remarkable results when motivated by a sense of making history en masse, assisted by peer influence and social networking."