Some former students now living overseas have told Checkpoint they are too scared to come home because they could be arrested for being behind in payments, with heavy penalties adding up. Students loans are interest free unless people head off shore for more than 6 months. In April the interest rate went up to 4.9% and the late payment interest rate for all borrowers is 8.9%. IRD emailed more than three and half thousand student loan defaulters earlier this year warning them they are being monitored, and could face additional enforcement including arrest at the border. One expert doesnt think IRD's tactics are working. Tax specialist Terry Baucher spoke to Lisa Owen.