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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Interest - Loan interest charged for all overseas-based borrowers

138: Loan interest written off for quick repayment of consolidated loan balance

You could also call this:

“You might not have to pay interest if you quickly pay off your student loan after returning to New Zealand”

If you were an overseas-based borrower with a student loan, you might be able to have your loan interest reduced to zero in certain situations. This can happen if you were about to be treated as New Zealand-based, but you paid off your entire loan balance quickly. Here’s how it works:

You need to have been an overseas-based borrower. Then, you would have become New Zealand-based, but you paid off your loan before that could happen. Specifically, you must have fully repaid your loan within 183 days (about 6 months) of when you would have become New Zealand-based.

If you do this, any interest charged on your loan during this time will be reduced to zero. This zero-interest period starts from the first day of the 183-day period and ends on the day you fully repaid your loan.

This rule helps people who come back to New Zealand and quickly pay off their student loans. It means you won’t have to pay interest for the time between when you returned and when you paid off your loan.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3818807.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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137: Full interest write-off for New Zealand-based borrowers, or

"No more special interest rules for people with student loans living in New Zealand"

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139: Late payment interest charged on unpaid amount, or

"Extra charges for not paying your student loan on time"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Interest: Loan interest charged for all overseas-based borrowers

138Loan interest written off for quick repayment of consolidated loan balance

  1. This section applies to a person who—

  2. was an overseas-based borrower; and
    1. would subsequently have been treated as being New Zealand-based except that he or she ceased to be a borrower because of paragraph (c); and
      1. fully repaid his or her consolidated loan balance before the end of the period of 183 consecutive days under which the borrower would have been treated as being New Zealand-based.

        1. Loan interest that is charged on the person's loan balance is reduced to zero for the period—

        2. starting on the first day of the 183-day period; and
          1. ending on the day on which the person's consolidated loan balance was fully repaid.

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