Summary of 2007 policy changes to the student loan scheme
New legislation came into effect on 1 April 2007 introducing new rules for student loan borrowers who are overseas and simplifying the administration of the student loan scheme.
Key changes for borrowers who are overseas
- a repayment holiday of up to three years
- new repayment obligations
- extension of the amnesty for those who have fallen into arrears with their payments
- extension of interest-free student loans to borrowers studying full-time at under-graduate level.
Other key changes
- a reduction in the late payment penalty rate from 2 percent to 1.5 percent for all student loan borrowers
- information matching between Inland Revenue and the New Zealand Customs Service
- simplification of the rules determining which repayment regime - New Zealand or overseas - applies to student loan borrowers.
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Date published: 18 Apr 2007
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