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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Relief - Hardship relief

147: Hardship relief for any tax year

You could also call this:

“Help if you're struggling to pay back your student loan”

If you’re having trouble paying back your student loan, you can ask for help. The Commissioner can lower how much you need to pay if it’s causing you serious hardship or if there are special reasons that make it fair to do so.

The Commissioner can change how much you need to pay for a time period they think is fair. However, there are some limits to this help:

  1. They can’t give you back money that was taken or paid for a tax year before the current one, except for the year just before the current one.

  2. They can’t lower your payments if you’ve been given a penalty for not providing correct information about your loan in that tax year. This applies if the penalty was for not taking reasonable care or for purposely not following the rules.

Remember, you need to ask for this help by applying for it. The Commissioner will look at your situation and decide if they can help you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2543900.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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146A: Commissioner may grant relief from penalties, or

"The tax office can remove penalties if you ask and explain your situation"

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148: Special deduction rate certificate for hardship relief, or

"Getting help to pay less on your student loan when you're struggling with money"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Relief: Hardship relief

147Hardship relief for any tax year

  1. If an application is made under section 145(1)(b) for hardship relief, the Commissioner may, for any period the Commissioner considers equitable, decrease a borrower's repayment obligation if the Commissioner—

  2. is satisfied that payment of that repayment obligation is causing, or would cause, serious hardship to the borrower; or
    1. considers that there are other special reasons that make it fair and reasonable to do so.

      1. However, the Commissioner must not—

      2. refund any amount that was deducted or paid to meet a repayment obligation for a tax year prior to the current tax year other than the tax year that immediately precedes the current tax year; or
        1. decrease a repayment obligation if—
          1. a student loan shortfall penalty has been imposed on a borrower under section 159 in relation to the tax year that the repayment obligation relates to; and
            1. for the purposes of the application of section 159 (as set out in section 158), the shortfall penalty for which the borrower was liable was imposed under section 141D or 141E of the Tax Administration Act 1994.

            Compare
            Notes
            • Section 147(2): replaced, on (applying for 2013–14 and later tax years), by section 63 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).