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Interest is added to overseas based customers' student loans.
Interest is calculated daily and added to your loan balance at the end of the tax year.
Daily rate: 0.009041%. Annual rate: 3.3%

If you're a New Zealand-based customer, you're entitled to an interest-free student loan.

If you become overseas-based interest will be added to your student loan, but there are some situations where interest is not charged. It's calculated each day on your loan balance using the current interest rate. Interest is always included in your loan balance, but interest is only charged on this interest after 31 March each year.

The interest rate is set at the start of each tax year, 1 April. The annual interest rate is currently 3.3%.

Moving overseas or returning to New Zealand

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 $334 or more. It will keep being charged until you have caught up with your payments.

The late payment interest rate is currently 7.3%. This is calculated as a monthly rate of 0.588%. 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 5.3%. This is calculated as a monthly rate of 0.431%.

Pay using instalments

Student loan interest, late payment interest and reduced late payment interest rates for the 2016 to 2025 tax years.
Tax year Annual interest rate Late payment interest rate Reduced late payment interest rate
2025  3.3% 7.3% 5.3%
2024 2.9% 6.9%  4.9%
2023 2.8% 6.8% 4.8%
2022 3% 7% 5%
2021 3.5% 7.5% 5.5%
2020 4% 8% 6%
2019 4.3% 8.3% 6.3%
2018 4.4% 8.4% 6.4%
2017 4.8% 8.8% 6.8%
2016 5.3% 9.3% 7.3%

Administration fee

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 you've been charged an establishment fee.

Last updated: 06 May 2024
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