Loan balance and responsibilities
Once you start using your Student Loan, StudyLink will transfer your loan information to Inland Revenue. Inland Revenue will send you loan statements showing your transactions, including interest and the balance.
On this page:
Student Loan balance
You’ll need to apply for a new loan each time you start a new course. You’ll also need to sign a new loan contract (StudyLink will send this to you). A loan account usually runs for 52 weeks. A $60 establishment fee is added to your loan every time you open a new loan account.
Once you start using your Student Loan, StudyLink will transfer your loan information to Inland Revenue on a daily basis. You’ll be able to check your total loan balance (including any current loans) through Inland Revenue’s online services. You need to register for an Inland Revenue online services account to do this.
Inland Revenue will be responsible for collecting repayments from you until your Student Loan is paid back.
Interest rate and Interest free Student Loans
Interest is charged on the money you have borrowed and the establishment fee. Interest is charged daily from the first day that you use your loan until you have repaid the loan in full.
The current interest rate is 5.9% pa (from 1 April 2013). Rates are reviewed on 1 April each year.
Any Student Loan borrower who has been in New Zealand for 183 or more consecutive days will be eligible for an interest free Student Loan. Inland Revenue will check if you qualify for an interest-free loan.
Student Loan establishment fee
You'll need to pay a $60 establishment fee every time you open a new loan.
The fee is added to your loan as soon as you use it. Once your loan is approved, you will be able to use it.
Please note: the establishment fee was previously known as an administration fee.
Inland Revenue administration fee
There will be a $40 administration fee for each tax year that you have a loan balance with Inland Revenue, unless:
- you are charged an establishment fee for that tax year, or
- your loan balance on 31 March of that tax year is less than $20
The administration fee will be added to your loan balance on 1 April of each applicable year. The amount of the administration fee may be increased from time to time and you will be given notice of any increase.
How to check your loan balance
You’ll receive loan statements from Inland Revenue twice a year. You can also check your loan balance (including any current loans) at any time through Inland Revenue’s online services. You need to register for an Inland Revenue online services account to do this.
What to do if you don't agree with your loan balance
There's a standard process for objecting to your loan balance. It's important you follow it so things can be sorted out as soon as possible.
Paying back your Student Loan
You can start paying back your loan while you're still studying, even if you're earning less than the repayment threshold.
You can make repayments towards your loan anytime after you've received your first payment.
If you earn more than the repayment threshold of $19,084 (about $367 per week) for the tax year 1 April to 31 March, you are required to start making repayments towards your loan even while you are studying.
Make sure you register for Inland Revenue's online services, it allows you to view details about your account, file returns, send mail and update details such as bank account, addresses and phone numbers straightaway.