Plain language law

New Zealand law explained for everyone

Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Exemption from standard deductions for borrowers who are full-time students

53: Definitions relating to exemption for full-time students

You could also call this:

“What words mean in the rules about full-time students not paying their loans”

In sections 54 to 60 of this law, there are some important words you need to know about. These words help explain when you might not have to make standard deductions from your student loan.

An ‘exemption period’ is a time when you don’t have to make standard deductions. This can be:

  • The time between when you first get your loan and when you start studying
  • The time while you’re studying
  • The time between your study periods (called semesters), but only if you’ve finished at least one semester and plan to keep studying. This break can’t be longer than 15 weeks for a Christmas holiday or 3 weeks for any other holiday.

A ‘full-time student’ is someone who is studying or will start studying in the tax year mentioned in section 54(1)(a).

A ‘programme of study’ is a course that is either:

  • At least 32 weeks long in a 52-week period and takes up at least 80% of your study time
  • At least 12 weeks long in a 52-week period and takes up at least 30% of your study time

The amount of study time is worked out using a special formula from the Education and Training Act 2020.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3885525.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
Previous

52: Recovery of assessed amounts, or

"How the government checks and tells you about your student loan payments"

Next

54: Borrowers who are eligible for exemption from standard deductions, or

"Students who don't have to make regular loan payments"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Exemption from standard deductions for borrowers who are full-time students

53Definitions relating to exemption for full-time students

  1. In sections 54 to 60,—

    exemption period means a period of time—

    1. between the date on which a borrower first has a loan advance made to him or her and the date on which the borrower starts a programme of study; and
      1. during which a borrower is undertaking a programme of study; and
        1. between semesters of a programme of study, provided that—
          1. a borrower has completed 1 or more semesters of a programme of study; and
            1. the borrower intends to continue a programme of study in the next semester; and
              1. the period of time between semesters is no more than—
                1. 15 weeks for a holiday that includes Christmas day; or
                  1. 3 weeks for any other holiday

                full-time student means a borrower who—

                1. is undertaking a programme of study; or
                  1. will start a programme of study in the tax year referred to in section 54(1)(a)

                    programme of study means a programme of study that—

                    1. is 32 weeks or longer in duration in any 52-week period and at least 0.8 of equivalent full-time student units, as determined in accordance with the formula used for the purposes of section 10(1) of the Education and Training Act 2020; or
                      1. is 12 weeks or longer in duration in any 52-week period and at least 0.3 of equivalent full-time student units, as determined in accordance with the formula used for the purposes of section 10(1) of the Education and Training Act 2020 or the equivalent on a pro-rata basis (as set out in the loan entry threshold table that is used for student loan entitlement purposes).

                      Notes
                      • Section 53 programme of study paragraph (a): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                      • Section 53 programme of study paragraph (b): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                      OSZAR »