Minor issues

Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Act 2010 - Minor issues

Hardship relief

The Student Loan Scheme Act has been amended to correct an unintended change made by the Student Loan Scheme Amendment Act 2007. That change limited the years for which relief from payment of a borrower's repayment obligations could be granted to the current year and the years either side.

Interest rate formula

The formula used to set the student loan interest rate - which only affects overseas-based borrowers - has been moved from the Student Loan Scheme (Interest Rates Formulas) Regulations 2006 to the Student Loan Scheme Act 1992 to allow for a more streamlined process of setting the interest rate.

Grace period

Student loan borrowers who were advised of the amount of their outstanding loan balance and fully repaid that amount within 15 days of receiving the advice had any interest charged in the intervening period cancelled.

Part-year assessments

Borrowers' repayment obligations are aligned to their entitlement to an interest-free loan.

Volunteer exemption - clarification

The Student Loan Scheme Act 1992 has been amended to clarify that a borrower may only obtain the benefit of the volunteer exemption if the organisation for which the borrower is working was a 'named' organisation at the time the borrower did that work.

Volunteer exemption - conditions

Borrowers who work overseas as volunteers, or for a token payment, for a charitable organisation that has been 'named' by regulations made under the Student Loan Scheme Act 1992 may be granted an exemption to the requirement that they be present in New Zealand for 183 or more days to qualify for an interest-free loan.

Date published: 11 May 2010

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