Student Loan reminder to overseas borrowers
18 April 2011
Inland Revenue is emailing overseas-based borrowers to remind them about their obligation to repay their Student Loans.
There are over 88,000 New Zealanders with Student Loans living overseas and the total loan balance is over $2.3 billion. Of that amount, $195.7 million was overdue for repayment as at December 2010.
Deputy Commissioner Service Delivery Carolyn Tremain said people with Student Loans who are living overseas, or planning to go overseas, need to be aware of their obligations and let Inland Revenue know if they are going to be out of the country for longer than 183 days.
"Those living overseas need to keep Inland Revenue up to date with their contact details so we can provide information and assistance so they do not fall behind with their repayments," she said.
"Borrowers are required to make repayments twice a year if they are not entitled to a repayment holiday. Compound interest will apply to loans for those who will be out of the country beyond the 183-day period."
Repayments can be made in a number of ways, including free online money transfers for borrowers in Australia and the UK and through the Inland Revenue website using a debit/credit card. Those living overseas are also encouraged to spread this message to others who may have a Student Loan.
"Overseas-based overseas can take advantage of a 10 percent discount if they keep up to date with their repayments and they should check to see if they are entitled to a repayment holiday," said Ms Tremain.
"However, we do strongly advise that those living overseas with a Student Loan contact us, especially if they are behind in their repayments and we will assist them to get up to date with their balance."