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Student Loan Scheme Act 2011

Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers - Preliminary provisions

7: Application of Act to bonded scholarships

You could also call this:

"This law explains how bonded scholarships are treated like student loans if you break the rules"

This part of the law talks about how bonded scholarships work under the Student Loan Scheme Act 2011. If you have a bonded scholarship and don't follow its rules, you might have to pay back money. The law treats this money like a student loan.

Here's how it works:

The money you have to pay back is called the "default amount." The law treats this amount as if it were a loan that you borrowed. It also treats you as if you were someone who took out a student loan. The agreement you signed for your scholarship is treated like a loan contract.

If there's any difference between what this law says and what your scholarship agreement says, this law is the one that counts.

A bonded scholarship is a special kind of agreement or allowance. It's called a bonded scholarship because the Education and Training Act 2020 says it is.

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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=DLM3180068.

Topics:
Education and learning > Higher educationMoney and consumer rights > Banking and loans
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6: Application of Act, or

"This law explains who needs to pay back student loans and when"

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8: Act binds the Crown, or

"The government must follow the student loan rules too"

Part 1Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers
Preliminary provisions

7Application of Act to bonded scholarships

  1. An amount repayable under a bonded scholarship (the default amount), along with interest payable in accordance with the scholarship agreement, may be recovered under this Act as if—

  2. the default amount were a loan advance; and
    1. the recipient of the scholarship were a borrower; and
      1. the scholarship agreement were a loan contract.

        1. Despite any enactment or rule of law, if a provision in an agreement for a bonded scholarship conflicts with this section, this section prevails.

        2. In this section, bonded scholarship means an allowance or agreement that is declared under clause 11 of Schedule 9 of the Education and Training Act 2020 to be a bonded scholarship.

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        Notes
        • Section 7(3): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).