Student Loan Scheme Amendment Act 2007: Late payment penalties
Late payment penalties
Section 44 of the Student Loan Scheme Act 1992
The late payment penalty rate has been reduced to 1.5 percent.
Background
Previously, any amount not paid by the due date incurred a late payment charge of 2 percent. A further 2 percent compounding penalty was charged for each subsequent month of default. This was equal to an annual interest rate of 6.8 percent.
Key features
The late payment penalty rate has been reduced from 2 percent per month to 1.5 percent.
Application date
The changes came into force on 1 April 2007.
Other sections in this legislation
| Information matching | Access to Customs' arrival and departure | Extending the amnesty | Simplifying the law | New repayment rules | Interest-free loans for borrowers overseas | Removal of interest write-offs | Exemptions for volunteers | Late payment penalties | Small balances | Applications in writing | Hardship relief | Care and management | Interest write-offs validated | Interest rate formula | Other technical amendments |
Date published: 31 May 2007
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