Having difficulties making repayments?
What you need to know
Due dates
If you're in New Zealand
The due date for end-of-year repayments for most New Zealand-based borrowers is 7 February following the end of the tax year (31 March). If you have a tax agent or accountant acting on your behalf, you'll have until 7 April to pay.
If you're based overseas
You need to repay your overseas-based repayment obligation in full by the final instalment date (31 March).
Contact us
If you're unable to make your repayment, contact us as soon as possible. Don't wait until the due date for your repayment has passed.
What we'll do
We'll discuss your current circumstances and help you determine the best option for dealing with the amount due. You may be able to repay the amount in instalments, or you may need to complete a Statement of financial position (IR40) form after the end of the tax year (31 March).
Note
If you're an overseas-based borrower, it may be possible to negotiate a lower repayment obligation for the tax year. See "Find out more" below, for details.
Late payment penalties
If you've underpaid your student loan repayment obligation and you don't pay it in full by the due date, you'll be charged a penalty of 2% per month for any period prior to 1 April 2007 and a penalty of 1.5% every month after 1 April until the total amount outstanding is repaid. The example below shows how the penalties accrue.
Interim repayment penalties
No penalties are charged on your first or second instalments if you pay your interim repayment amount in full by the third instalment date (7 March).
What happens if I still don't pay?
We'll continue to charge penalties on unpaid amounts. We'll send you several reminders to either pay, or get in contact with us before we'll take any serious action to recover the outstanding debt.
What happens if I'm bankrupt?
If you've been adjudged bankrupt, any student loan incurred before bankruptcy will be written off. If the bankruptcy is subsequently annulled you must continue to repay the loan as if you were never adjudged bankrupt.
Example - late payment penalties
Ali's loan balance when he went overseas was $5,000 and he was considered to be an overseas-based borrower. His repayment obligation for the year was $1,070 (see "Find out more" below, for details about repaying your loan if you are based overseas). However, he made no repayments while away. The following table shows how penalties increase as the months go by.
| Date | 1.5% penalty on overdue amount | Amount due |
|---|---|---|
|
31 March 2007 |
$0.00 |
$1, 070.00 |
|
1 April 2007 |
$16.05 |
$1, 086.05 |
|
1 May 2007 |
$16.29 |
$1,102.34 |
|
1 June 2007 |
$16.53 |
$1,118.87 |
|
1 July 2007 |
$16.78 |
$1,135.65 |
|
1 August 2007 |
$17.03 |
$1,152.68 |
|
1 September 2007 |
$17.29 |
$1,169.97 |
|
1 October 2007 |
$17.54 |
$1,187.51 |
|
1 November 2007 |
$17.81 |
$1,205.32 |
|
1 December 2007 |
$18.07 |
$1,223.39 |
|
1 January 2008 |
$18.35 |
$1,241.74 |
|
1 February 2008 |
$18.62 |
$1,260.36 |
|
1 March 2008 |
$18.90 |
$1,279.26 |
Find out more
Next steps
Date published: 26 Mar 2008
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