Student loans
Student Loan Scheme Act 2011
Changes to student loans are underway with the recent enactment of the Student Loan Scheme Act 2011. These changes improve the way student loans are managed, repaid and administered.
The majority of changes will take effect from April 2012, with additional changes being introduced in April 2013.
- Consolidated view of your student loan balance
- Repayments made per pay period will be considered your repayment obligation
- Exemptions from repayment deductions for full-time students
- Reduced rates for secondary employment
- New student loan repayment codes
- Annual administration fee
- Changes to late payment penalties
- Recalling the entire loan amount
Find out more about the Student Loan Scheme changes.
Student Loan Scheme Amendment Bill
Proposed changes to student loans have been included in the recently introduced Student Loan Scheme Amendment Bill.
The following proposed changes may relate to those who have a student loan.
- Repayment holidays for overseas-based borrowers will be shortened to one year and borrowers will need to apply for a repayment holiday and provide a contact person for those leaving New Zealand from April 2012.
- Borrowers won't be able to offset losses against their income to reduce their student loan repayment obligations from April 2012.
- Borrowers will be required to provide a contact person for all new student loan applications from 1 January 2013.
Other student loan changes announced in Budget 2011
- Borrowers with an overdue repayment obligation of $500 that's been overdue for a year or more won't be eligible for new lending from 7 February 2013.
- The repayment threshold will be held at $19,084 until 31 March 2015.
Date published: 30 Jan 2012
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