Student loans Dates
JAN 15Interim student loan repayments are due. They count towards your end-of-year repayment obligation.
FEB 7End-of-year student loan repayments are due. If you have an amount to pay, you'll have received a letter or text message from us.
APR 1Overseas-based student loan repayment due if you do not have a temporary repayment suspension.
When you have a student loan and earn salary or wages, the repayments from your income depend on:
- how much you earn
- if it is your main or secondary income.
It's important to use the right tax code when you're working. When you get a salary or wage and have a student loan you need to add 'SL' to your tax code. This tells your employer you have a student loan and they need to deduct repayments from your pay to put towards your loan.
You make student loan repayments when you earn more than the repayment threshold
The amount you have to pay to your student loan each year is 12% of every dollar you earn over the repayment threshold. For the 2024 tax year the annual repayment threshold is $22,828.
The repayment threshold is broken down into the following pay period thresholds.
- $439 if you're paid weekly.
- $878 if you're paid fortnightly.
- $1,756 if you're paid every 4 weeks.
- $1,902.33 if you're paid monthly.
Student loan repayments for your main job
You repay 12% of every dollar you earn over the pay period repayment threshold when you use a tax code with 'SL' for your main job (M SL or ME SL).
For example, if you earn $600 a week before tax, your repayment will be $19.32.
$600 (weekly pay before tax) − $439 (weekly repayment threshold) = $161.
$161 (income over the repayment threshold) × 12% (repayment rate) = $19.32.
Benefits and payments from Ministry of Social Development (MSD) are considered main sources of income, but can only use the M tax code (not M SL). This means no student loan repayments are deducted from these sources of income. If you get a payment from MSD and earn other income, you may want to apply for a student loan special deduction rate.
Student loan repayments for your secondary job
The repayment threshold does not apply to secondary jobs because it has already been taken into account with your main job. This means you repay 12% of every dollar you earn from your secondary job to your student loan.
For example, if you earn $200 a week before tax in a secondary job, your repayment will be $24.
$200 (weekly pay before tax) × 12% (repayment rate) = $24
Special deduction rates for secondary jobs
If you have more than 1 job and you earn less than the pay period repayment threshold from your main job, you can apply for a special deduction rate for your secondary job. This lets the unused amount of the pay period repayment threshold to be used with your secondary income, reducing your repayments.
Repayment deduction exemptions
In some situations, you may earn over the pay period repayment threshold, but less than the annual repayment threshold (such as working a holiday job). A student loan repayment deduction exemption may be the best option for you in these situations.
Pay your loan off faster with extra repayments
You can make extra repayments to your loan if you want to pay it off faster.
Work out when you'll pay off your student loan
Use our student loan repayment calculator if you want to see how long it will take to pay off your loan. You can include extra repayments in your calculation.
Adjustments to deductions
Your employer may need to correct the amount of a student loan deduction after they have notified you or us, if the original amount was incorrect. To provide you with certainty, after 4 years your assessment is final.