For individuals & families: Travelling to and from New Zealand
Bonded scholarships
StudyLink (a service of the Ministry of Social Development) and TeachNZ (a unit of the Ministry of Education) administer a range of bonded scholarships. Examples of bonded scholarships are: Step Up Scholarships (administered by StudyLink) and Maori Medium Scholarships (administered by TeachNZ).
Recipients of bonded scholarships are bonded following completion of their course of study. The specific bonding requirements and defaults differ across the scholarships.
If a scholarship recipient breaks the bonding conditions, the scholarship administrator may transfer some or all of the amount of the scholarship to be repaid (including interest from the date of default) to Inland Revenue for collection under the same terms and conditions as a student loan.
Step Up Scholarships
In the 2004 academic year, the Government established Step Up Scholarships aimed at increasing participation by young people from low income backgrounds in degree-level courses in the human and animal health fields.
StudyLink (an agency of the Ministry of Social Development) is responsible for administering the scholarships. For more information on Step Up Scholarships, visit Studylink's website.
Bonding requirements
Step Up Scholarship recipients are required to remain in New Zealand once they have completed their qualification, for a period equal to the length of the study period or four years (which ever is the lesser).
| 3 year course | 4 year course | 5 year course |
|---|---|---|
| Must remain in NZ for 3 years out of the following 4 years | Must remain in NZ for 4 years out of the following 5 years | Must remain in NZ for 4 years out of the following 5 years |
If you were a recipient of a Step Up Scholarship and you're thinking about going overseas, or you have already left, you may need to contact StudyLink to check whether your scholarship bonding period will be affected.
StudyLink contact details
- call free: 0800 889 900
- fax free: 0800 883 388
- Deaf Link freefax: 0800 621 621
- email StudyLink
- If you need to contact StudyLink while you're overseas call +64 4 917 3107
- visit one of the StudyLink offices.
Defaulting on bonding requirements
You are able to leave New Zealand for short periods, such as holidays for up to four weeks and you may also be able to go overseas for one full year for work experience or similar. However, under the terms of the Step Up Scholarship you must advise StudyLink of your intentions if your bonding period has not been completed.
If you break the bonding condition of your Step Up Scholarship you may be liable to repay a portion of the scholarship. StudyLink will determine the amount of the scholarship to be repaid (including interest from the date of default) and transfer this balance to Inland Revenue for collection under the same terms and conditions as a student loan.
| Leave NZ within 1 year of qualifying | Leave NZ within 2 years of qualifying | Leave NZ within 3 years of qualifying | Leave NZ within 4 years of qualifying | |
|---|---|---|---|---|
| 3 year course | 80% of total scholarship fees to be repaid by the student | 60% of total scholarship fees to be repaid by the student | 40% of total scholarship fees to be repaid by the student | N/A |
| 4 year course | 80% of total scholarship fees to be repaid by the student | 70% of total scholarship fees to be repaid by the student | 60% of total scholarship fees to be repaid by the student | 40% of total scholarship fees to be repaid by the student |
If you don't already have a student loan balance with Inland Revenue, you may become liable to start making repayments towards your loan. Your repayment obligations will depend on whether you are resident in New Zealand or overseas.
Common questions about bonded scholarships
- Can I go overseas during the term of my Step Up Scholarship?
- Why has my Step Up Scholarship been changed to a student loan?
- I haven't been overseas so what do I need to do if I did not break my Step Up Scholarship bonding period?
- How do I repay my Step Up Scholarship loan?
Can I go overseas during the term of my Step Up Scholarship?
You are able to leave New Zealand for short periods, such as a holiday for up to four weeks. You will also be able to leave for one full year overseas for work experience or similar.
You may want to contact StudyLink on 0800 889 900 to check whether your scholarship bonding period will be affected.
Why has my Step Up Scholarship been changed to a student loan?
Step Up Scholarship recipients are bonded to remain in New Zealand after completion of study for a period of time equal to the length of study or four years (which ever was the lesser).
If you did not meet this requirement, a portion of the scholarship awarded to you while you were studying is converted into a student loan.
If you disagree with this or you want to check how the amount was calculated, contact StudyLink on 0800 889 900.
I haven't been overseas so what do I need to do if I did not break my Step Up Scholarship bonding period?
You should contact StudyLink on 0800 889 900. StudyLink will advise Inland Revenue to correct your account once they have confirmed you have not broken the bonding requirements.
How do I repay my Step Up Scholarship loan?
You repay this exactly the same as a student loan:
Living in New Zealand - if your annual income is over the repayment threshold you are required to make repayments to Inland Revenue, until the loan is fully repaid.
The minimum amount required is 10 cents for every $1 you earn over the threshold amount.
If your income drops below the repayment threshold you aren't required to make any payments.
Living overseas - Your non-resident assessment is calculated and sent to you in April each year. This assessment is based on your loan balance and estimates interest charges for the year ahead. Payment is due in four instalments.
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Date published: 30 Mar 2005
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