When you're based overseas, you'll need to make minimum repayments on your student loan or apply for a temporary repayment suspension. It's a good idea to know about getting someone to act on your behalf here in New Zealand. You'll also need to be aware of how to make payments from overseas.
Student loan minimum repayments
You need to make minimum repayments to avoid late payment interest or penalties. If you are travelling or living overseas with a student loan, your minimum repayments depend on your student loan balance when you left New Zealand. If you left New Zealand before 31 March 2014, then we'll use your student loan balance from 31 March 2014.
Keep in mind that if your loan grows because of interest or penalties, your minimum repayment amount may go up. However, you also need to be aware that your repayment amount will never reduce as your loan balance reduces. We check every 31 March to see if your student loan has become bigger.
At the current interest rate, if your loan is over $142,860, your repayments will not be enough to cover your interest.
|Loan balance||Due date - 30 September||Due date - 31 March|
|under $1,000||half your loan balance||half your loan balance|
|$1,000 and up to $15,000||$500||$500|
|over $15,000 and up to $30,000||$1,000||$1,000|
|over $30,000 and up to $45,000||$1,500||$1,500|
|over $45,000 and up to $60,000||$2,000||$2,000|
We send you an assessment notice each year that tells you the minimum payments you need to make. Your payments are generally due 30 September and 31 March. If one or both of these dates have passed by the time we notify you, we may adjust these dates.
Getting someone to act on your behalf
It is a good idea to set up a nominated person to manage your loan while you are overseas, but you do not have to.
If you have set up a nominated person who can manage your tax matters for you, they can update your details through their own myIR account. If you have set them up with access to all account types, they will be able to view and update any future accounts you may get.
If you have set up an alternative contact person (ACP) for us to contact if we can't reach you, both you and your ACP are now able to view or cancel the ACP link through your myIR account. The ACP cannot view any details about your loan.
Temporary repayment suspension
With a temporary repayment suspension you can take a break from paying your student loan for up to 12 months while you travel overseas. Keep in mind that your student loan will still gain interest during this time, so if you can, it's a good idea to make additional payments.
If you pay using an online international money transfer or payment service provider
If a service provider does not process your payment to us in time for the funds to clear by the due date, it will remain outstanding. We may charge penalties or interest. It is your responsibility to make sure you:
- pay and file on time
- make payments to us either on or before the New Zealand due date
- check if the provider you choose charges international fees.
If you live in Australia, the United Kingdom, Europe, Canada or the United States, there is a new way to set up direct debit payments through your myIR account.
Go to myIR < Student loan account < 'make a payment' and follow the instructions.