Changes from 1 January 2013 you need to know about
18 January 2013.
Find out more about the changes to Student Loans and Allowances from 1 January 2013.
Student Allowance changes are:
- The Student Allowance will no longer be available for postgraduate study (except Bachelor degrees with honours).
- Exemptions to the 200 week lifetime limit for Student Allowance will be removed.
- The current Student Allowance parental income threshold of $55,027.96 will be maintained without CPI adjustment until 31 March 2016.
Student Loan changes are:
- Pilot training students will be limited to borrow up to $35,000 per EFTS from the compulsory fees component of the Student Loan.
- Student Loan borrowing will be limited to 2 EFTS of study each year.
- All students applying for a new Student Loan for study that starts on or after 1 January 2013 will be required to nominate a New Zealand-based contact person as a condition of accessing the Student Loan Scheme.
- Students won’t be able to borrow through the Student Loan Scheme if they have $500 or more in default at the time of their application, and that at least some portion of that amount has been overdue for a year or more. This applies to all new Student Loan applications received on or after 7 February 2013.
- People aged 55 and over will only be eligible for the compulsory fees component of the Student Loan for study that starts on or after 1 January 2013.
- If a student is enrolled in a level 1 or level 2 qualification that receives fees-free funding, and starts on or after 1 January 2013, they will not be able to borrow fees from the Student Loan Scheme.
The following changes will affect students when they start repaying their loan:
- From 1 April 2013, the Student Loan repayment rate for all New Zealand-based borrowers earning over the repayment threshold will be increased to 12 cents in the dollar.
- The voluntary repayment bonus will be removed from 1 April 2013.
- The information match between Inland Revenue and the New Zealand Customs Service will be extended to identify Student Loan borrowers in serious default so Inland Revenue can immediately initiate contact.
