Voluntary Student Loan Repayment Bonus
04 May 2009
The Government is introducing a ten per cent bonus for people who make voluntary repayments on their Student Loan.
The aim is to encourage borrowers to repay their loans sooner. Shorter repayment times mean young New Zealanders will be debt free earlier.
From 1 April 2009, voluntary repayments made to Inland Revenue totalling $500 or more in a tax year will get a bonus ten per cent of the amount repaid credited to their Student Loan account. For example, a student who makes voluntary repayments totalling $500.00 in a tax year will have their loan account reduced by $550.00.
The bonus will be credited by Inland Revenue to the borrowers Student Loan accounts after the end of the tax year. For anyone who repays their Student Loans in full, the bonus will be credited at the time of final payment.
Repayments made to StudyLink before the loan is transferred to Inland Revenue will not qualify for the ten per cent bonus.
More Information
For more information on the Voluntary Student Loan Repayment Bonus go to the Inland Revenue website.
