Find out about the voluntary repayment bonus.

The government has introduced a 10% student loan voluntary repayment bonus for voluntary repayments that total $500 or more in a tax year (1 April to 31 March). This will only apply to voluntary repayments made from 1 April 2009.

You don't need to make a voluntary repayment in a lump sum. You could make voluntary weekly repayments of $10 throughout a tax year instead of a one-off payment of $500, and still be eligible for the repayment bonus.

What voluntary repayments are

A voluntary repayment is a payment made on top of what you need to repay for a tax year. They can be made as a single lump sum or by smaller amounts during the year. They will first be credited to any old and current repayment obligations and any amount left is treated as a voluntary repayment.

Find out how to make an extra repayment.

When you're eligible for the voluntary repayment bonus

You're eligible for a voluntary repayment bonus if:

• you're up-to-date with your repayments and filing your income tax returns (if you're required to)
• your loan balance with Inland Revenue is $550 or more at the beginning of the tax year (1 April), and
• your voluntary repayments for the tax year total $500 or more.

Please note that voluntary repayments made to StudyLink will not qualify for a voluntary repayment bonus.

How it works

You don't need to apply for the voluntary repayment bonus, but you do need to have met all your student loan obligations, including making your repayments by the due date, using the correct tax code, and filing your income tax returns (if you're required to).

After the end of the tax year, when we know what you needed to repay for the tax year, we'll check to see if you're eligible. This includes if the voluntary repayments you made during the tax year were $500 or more than your repayment amount due.

When you receive your voluntary repayment bonus depends on your circumstances. For voluntary repayments made during the tax year 1 April 2009 to 31 March 2010, read the table below:

You’ll be able to see if a voluntary repayment bonus has been applied to your loan balance by checking your statement - we send these out in May and October. You can also check your loan balance online, go to "Get it done online".

If you repay your loan in full

1 April 2009 to 31 March 2010

If you repay your loan in full between 1 April 2009 and 31 March 2010, we'll check whether you're entitled to the voluntary repayment bonus and add it to your loan balance after 1 April 2010.

From 1 April 2010

Making a final repayment

To make a final repayment, you'll need to:

• get a current loan balance, and
• include any loan balance you have with Studylink as well.

Go to "Get it done online" to check your loan balance with Inland Revenue.

You can then do either of the following.

As when making any financial decisions, you're advised to seek appropriate financial advice before taking advantage of the voluntary repayment bonus.