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Te itarete me ngā utu pūtea taurewa ākonga Student loan interest and fees

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What
Interest is added to all student loans.
When
Interest is added at the end of the tax year, but it is written off if you are a New Zealand-based borrower.
Rate
4.0%

Interest is added to all student loans. Interest is calculated each day on your loan balance using the current interest rate. This interest is added to your loan at the end of the tax year.

If you are a New Zealand-based borrower, interest is added to your loan but is then written off. This means it will be taken off again and you will not need to pay it. You will still see interest on your statements, though. 

If you go overseas your interest will not be written off, but there are some exceptions to this.

The interest rate is set each year. It is currently 4%.

What happens to my student loan when I go overseas

Late payment interest

If you do not make your payments on time, we may charge late payment interest. 

This is only charged on the overdue amount, and only if the overdue amount is more than $334. It will keep being charged until you have caught up with your payments.

The late payment interest rate is currently 8%. This is calculated as a monthly rate of 0.643%. The standard interest rate applies to the rest of your loan.

Reduced late payment interest rates

If you contact us about late payments on your student loan, we may be able to reduce the amount of late payment interest you need to pay.

You can arrange an instalment plan to pay off your late payment amount. If you stick to the plan we can switch you to the reduced late payment rate so you pay less interest.

The reduced late payment interest rate is currently 6%. This is calculated as a monthly rate of 0.486%.

Pay using instalments

Administration fees

If your student loan balance is $20 or more at 31 March we will charge a $40 administration fee. This is to cover the costs of managing your loan. You will not be charged an administration fee in the same year that you have been charged an establishment fee.