Repayment
From 1 April 2013, the repayment rate for student loan deductions increased from 10% to 12%. While the borrower is a resident of New Zealand, loans are repaid at a rate of 12 cents for every whole dollar of taxable income earned over the repayment threshold of $19,084 per annum ($367 per week), an amount roughly equivalent to the Domestic Purposes welfare benefit is exempt from assessment.
From 2001, all full-time students have been exempt from interest while studying, and from 2006 all borrowers resident in New Zealand have been exempted interest.
Loan recipients who leave New Zealand are assessed on their loan balance for repayment purposes, with a minimum annual payment being required. Loan repayments can be suspended on request for those on no/low income overseas, however interest still accumulates. On 22 March 2007, the government introduced a three-year 'loan repayment holiday' for those overseas. In practice this is a uniform extension of the previous ability to waive repayments until a later date. As before, interest accumulates during this period.
For borrowers in New Zealand with more than one job, you can apply for a student loan special deduction rate for your secondary earnings if you earn less than the pay period repayment threshold from your main job.
Debt eligibility check for new loan applications:
You won't be able to borrow through the Student Loan Scheme if you have $500 or more in default at the time of your 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 by StudyLink on or after 7 February 2013 and includes all unpaid repayment obligations, late payment interest, penalties and amounts under instalment arrangement.
Read more about this topic: Student Loans In New Zealand
Famous quotes containing the word repayment:
“Parents vary in their sense of what would be suitable repayment for creating, sustaining, and tolerating you all those years, and what circumstances would be drastic enough for presenting the voucher. Obviously there is no repayment that would be sufficient . . . but the effort to call in the debt of life is too outrageous to be treated as anything other than a joke.”
—Frank Pittman (20th century)
“A man’s indebtedness ... is not virtue; his repayment is. Virtue begins when he dedicates himself actively to the job of gratitude.”
—Ruth Benedict (1887–1948)