Bonded scholarships
What you need to know
Who administers bonded scholarships
A range of scholarships are administered by:
- StudyLink (Ministry of Social Development) for example, Step Up and Bonded Merit Scholarships, and
- TeachNZ (Ministry of Education) for example, Maori Medium Scholarships. For more information visit the Ministry of Education website under "Related websites".
Bonding conditions
If you're the recipient of a scholarship, you'll be bonded by conditions once you've completed study. These requirements differ across scholarships. This page deals with Step Up and Bonded Merit Scholarships only.
Inland Revenue's role
If you break bonding conditions, some or all of the scholarship amount may be transferred to Inland Revenue for collection under the same terms and conditions as a student loan.
What happens if you're the recipient of a Step Up or Bonded Merit Scholarship
Requirement to remain in New Zealand
Once you've completed your qualification, you must remain in New Zealand for a period equal to the length of the study period or four years (which ever is the lesser). The tables below show how many years you must remain in New Zealand.
Step Up Scholarships
| Study period | You must remain in New Zealand |
|---|---|
| 3 year scholarship | 3 years out of the following 4 years |
| 4 and 5 year scholarships | 4 years out of the following 5 years |
Bonded Merit Scholarships
| Study period | You must remain in New Zealand |
|---|---|
| 1 year scholarship | 1 year out of the following 2 years |
| 2 year scholarship | 2 years out of the following 3 years |
| 3 year scholarship | 3 years out of the following 4 years |
| 4 year scholarship | 4 years out of the following 5 years |
Going overseas?
You're able to leave New Zealand for short periods, such as a holiday, for up to four weeks. You'll also be able to leave for one full year overseas for work experience or similar. However, you must advise StudyLink of your intentions if your bonding period hasn't been completed.
StudyLink contact details
- call free: 0800 88 99 00
- fax free: 0800 88 33 88
- Deaf Link freefax: 0800 621 621
- email StudyLink
- calling from overseas: +64 4 917 3107
- visit a StudyLink office.
Other bonding conditions
If you have a Bonded Merit Scholarship and you stop studying without completing the qualification which the scholarship was paid for, you may be required to repay the full amount, although you won't be subject to a bonding period.
What happens if you break bonding conditions
You may be liable to repay a portion of the scholarship. StudyLink will determine the amount of the scholarship to be repaid (including interest from the date of default) and transfer this balance to us for collection.
How much you'll need to repay
The table below shows the percentage of your total fees that you'll need to repay.
| Leave NZ within... | 3 year course | 4 year course |
|---|---|---|
| 1 year of qualifying | 80% | 80% |
| 2 years of qualifying | 60% | 70% |
| 3 years of qualifying | 40% | 60% |
| 4 years of qualifying | N/A | 40% |
If you disagree with the amount you have to pay back or you want to check how the amount was calculated, contact StudyLink on 0800 88 99 00.
How you repay your scholarship loan
The process for repaying your scholarship loan is the same as if it was a student loan. How much you need to repay each year (your repayment obligation) depends on whether you're living in New Zealand, or living overseas as a non-resident. (See "Find out more" below), for details.
Find out more
Next steps
Date published: 04 Aug 2006
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