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Student Loan Scheme Act 2011

Repayment obligations of borrowers - Overseas-based borrowers' repayment obligations - Calculation and payment of overseas-based repayment obligation

111: Exceptions to repayment obligations of overseas-based borrowers

You could also call this:

“When overseas borrowers don't have to pay back their full student loan”

If you have a student loan and you live overseas, there are some special rules about how much you need to pay back. Here’s what you need to know:

If you owe money on your loan but your loan balance is zero, you don’t have to pay anything for that tax year.

If the amount you’re supposed to pay is the same as or more than your total loan balance, you only need to pay the amount of your loan balance.

These rules don’t change if you have any unpaid amounts or if you owe late payment interest. They also don’t affect another rule in section 193 of the law.

These special rules are more important than the usual overseas borrower repayment rules in section 110.

The law also explains how to figure out your loan balance. If you weren’t living overseas at the start of the tax year, it’s based on your balance when you moved overseas, minus any payments you were told to make after that day. If you were already living overseas at the start of the tax year, it’s based on your balance from the end of the previous tax year, plus any yearly fees, minus any payments you were told to make.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180255.

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Money and consumer rights > Banking and loans Education and learning > Higher education
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110: Repayment obligations of overseas-based borrowers, or

"How much you need to pay back on your student loan if you live overseas"

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112: Repayment to be made by instalments, or

"You pay back your overseas student loan in two parts during the year"

Part 2 Repayment obligations of borrowers
Overseas-based borrowers' repayment obligations: Calculation and payment of overseas-based repayment obligation

111Exceptions to repayment obligations of overseas-based borrowers

  1. For each tax year in which an overseas-based borrower has an unpaid amount but has no loan balance, the borrower's repayment obligation is zero.

  2. For each tax year in which an overseas-based borrower's repayment obligation under section 110 is equal to or more than the borrower's loan balance, the borrower's repayment obligation is equal to the borrower's loan balance.

  3. Nothing in this section affects—

  4. a borrower's liability for an unpaid amount or late payment interest; or
    1. section 193.

      1. This section overrides section 110.

      2. In this section, loan balance means,—

      3. if a borrower was not overseas-based at the start of the tax year, the sum determined by—
        1. including the borrower's loan balance on the day on which the borrower became overseas-based; and
          1. subtracting the amount of any repayment obligation or other amount that the Commissioner has, on or before that day, required the borrower to pay and that is payable on or after that day; and
          2. if a borrower was overseas-based at the start of the tax year (year A), the sum determined by—
            1. including the amount of the borrower's loan balance on 31 March in the year prior to year A (the previous year); and
              1. including the amount of any annual administration fee charged under section 189 for the previous year; and
                  1. subtracting the amount of any repayment obligation or other amount that the Commissioner has, on or before that day, required the borrower to pay and that is payable on or after that day.

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                  Notes
                  • Section 111(4): replaced, on , by section 16(4) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
                  • Section 111(5): replaced, on , by section 16(5) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
                  • Section 111(5)(b)(iii): repealed, on (applying for 2014–2015 and later tax years), by section 75 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
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