Student Loan Scheme: Who Qualifies and What You Get
Learn how interest-free student loans work in New Zealand and the important rules about living overseas.
This scheme provides financial assistance to help cover the costs of tertiary education for those pursuing higher studies. It is designed to assist with the financial hurdles of tuition and living costs during your time in Aotearoa.
Who it's for
This scheme is specifically for tertiary graduates who have outstanding loans. If you have completed your studies and have a remaining balance that needs to be addressed, this scheme applies to your situation.
What you get
For borrowers who remain based in New Zealand, the primary benefit is that these are interest-free loans. This means that as long as you stay within the country, the total amount you owe does not grow due to interest charges, allowing you to focus on paying back the original amount borrowed.
What it costs you
While the loans are interest-free for residents, there is a mandatory repayment requirement. You must begin making repayments once your income exceeds a certain threshold. The exact amount you pay back is tied to how much you earn, ensuring that the repayment is linked to your ability to pay.
The catch to know
The most important thing to remember is the impact of your location on the loan. While the interest-free status is a major benefit for those living locally, if you move overseas, interest starts accruing on your debt immediately. This means your total balance will increase if you live outside of New Zealand.
How to apply
- Access the official portal to review your current loan status and eligibility.
- Set up your personal account to manage your student loan details and view your balance.
- Follow the specific application steps provided on the site to manage your repayments or check your threshold status.