Student Loan Info - 2007
Student Loan Info Issue October 2007
- Pay on time and avoid penalties
- Use the right tax code if you're a salary or wage earner
- Keep in touch with your student loan online
- Repayment holiday for overseas-based borrowers
- Going overseas but returning within six months?
- Apply for the student loan amnesty now
PSSSSSSSST
There's just enough time to apply for the student loan amnesty
Applications close 31 March 2008
For details visit student loans
Pay on time and avoid penalties
It's important you make repayments by their due date, otherwise you'll incur a penalty of 1.5% a month (2% prior to 1 April 2007) on the outstanding amounts until they are repaid in full:
- New Zealand-based borrowers are required to repay their student loan at the rate of 10c for every dollar they earn over $17,784 (for the year to 31 March 2008). If you're a salary or wage earner, you need to tell your employer and use the right tax code. If your income's from other sources (for example, if you're self-employed) you need to make your repayments directly to Inland Revenue.
- Overseas-based borrowers - that is, borrowers who are overseas for more than six months - have different repayment obligations. If you're not on a repayment holiday, you need to make two repayments a year - one by 30 September and the other by 31 March. The amount of each repayment is based on the size of your loan.
To see how much you need to repay, and how to do it from overseas, visit student loans
Use the right tax code if you're a salary or wage earner
If you're based in New Zealand and you're a salary or wage earner, you're required to tell your employer you have a student loan and use the correct tax code.
If you're going to be earning more than $17,784 from your main job in the year to 31 March 2008, then you need to use the M SL tax code for that job. If you have other jobs, you will need to use a secondary tax code for those jobs. See student loans for more details.
If you're not doing this already, you should advise your employer straight away and complete a Tax code declaration (IR330) > form.
Keep in touch with your student loan online
Go to Get it done online > to register for our online services. You can check your account balance, transaction details, earning information and due payments.
Repayment holiday for overseas-based borrowers
If you're an overseas-based borrower, you may be eligible for a repayment holiday of up to three years while you're overseas. While you're on a repayment holiday you don't have to make any repayments on your student loan.
However, interest will continue to be charged on your student loan, so it's a good idea to make voluntary repayments to reduce your loan balance. If you go overseas after 1 April 2007 you will automatically receive a three-year repayment holiday. To find out more, visit student loans
Going overseas but returning within six months?
If you're overseas for six months or less, you're still considered to be a New Zealand-based borrower. This means your repayment obligations are the same as if you were in New Zealand, and you'll be eligible for an interest-free student loan.
Apply for the student loan amnesty now
Join the thousands of borrowers who have applied for the student loan amnesty on late payment penalties. It's a chance for student loan borrowers based overseas to make a fresh start on their student loans.
If you're eligible, we'll either reverse your late payment penalties or not apply them to your loan.
You're eligible if:
- You were overseas on 31 March 2006 and had late payment penalties as at 1 April 2007, or
- You were overseas on 31 March 2006 but haven't advised us that you left New Zealand.
Sound like you? Then you need to apply for the amnesty before 31 March 2008 to avoid a one-off penalty. If your application is accepted, you'll be required to keep your amnesty repayment obligations up to date for two years.
Visit student loans for details on how to apply.
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Date published: 26 Oct 2007
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