Student Loan Scheme Act 2011

Repayment obligations of borrowers - Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages

80: Calculation of terminal payment for tax year

You could also call this:

"Figuring out your final student loan payment for the year"

When you need to pay back your student loan at the end of the tax year, there's a special calculation to figure out how much you owe. This is called your terminal payment. Here's how it works:

You start with the total amount you need to repay for the year. Then you subtract any payments you've already made during the year. You also subtract any other amounts that have gone towards paying off your loan. The result is your terminal payment.

If you've paid more during the year than your total repayment amount, you don't need to worry about the terminal payment. Also, if you've already fully paid off your loan through other means, you won't have a terminal payment.

The government uses a formula to work this out. They look at your end-of-year repayment obligation, your interim payments, and any other amounts that have gone towards your loan. They put these numbers into the formula to figure out what you still need to pay.

Remember, this calculation is done at the end of the tax year to make sure you've paid the right amount towards your student loan.

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This page was last updated on 5 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180179.

Topics:

Education and learning > Higher educationMoney and consumer rights > Banking and loans

79: Payment of end-of-year repayment obligation, or

"Pay your final student loan bill for the year"

81: Due date for terminal payment, or

"When you need to pay the last bit of your student loan"

Part 2Repayment obligations of borrowers
Repayment obligations for New Zealand-based borrowers with income other than, or as well as, salary or wages

80Calculation of terminal payment for tax year

The amount of a borrower's terminal payment for the tax year must be calculated in accordance with the formula—
$a = (b − c) − (d − c)$

Where:
- a a
  is the amount of the borrower's terminal payment
- b b
  is the borrower's end-of-year repayment obligation for the tax year
- c c
  is the amount of the borrower's interim payments for the tax year in accordance with section 82 or 83
- d d
  is the sum of any amounts that satisfy (so far as they extend) the borrower's end-of-year repayment obligation for the tax year.
However,—
if the sum of (b − c) is less than zero, then it must be treated as if it were zero; and
if the sum of (d − c) is less than zero, then it must be treated as if it were zero.

Notes

Section 80: replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on 29 March 2013, by section 14 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).