Student Loan Repayment Scheme: Who Qualifies and What You Get
Learn about the Student Loan Repayment Scheme in New Zealand, including interest-free benefits for locals and how repayments are managed.
This scheme manages the repayment process for individuals who have borrowed money for their studies.
Who it's for
This scheme applies to anyone who has an outstanding student loan. If you have a balance remaining on your student loan, you fall under this system.
What you get
The main benefit of this scheme is that loans are interest-free for borrowers who are based in New Zealand. As long as you remain based in the country, you will not be charged interest on the money you owe.
What it costs you
Repayments are handled via automatic deductions from your pay. These deductions only happen once your earnings reach a certain threshold. This means you will not see these deductions until your income meets the required level set by the government.
The catch to know
The interest-free benefit is tied to your location. If you move overseas, interest starts accruing on your loan immediately. It is important to keep track of where you are living to understand how your loan balance changes.
How to apply
To manage your loan and understand your obligations, you can use the official portal: https://www.ird.govt.nz