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Student Loan Scheme Act 2011

Repayment obligations of borrowers - Overseas-based borrowers' repayment obligations - Temporary repayment suspension of overseas-based repayment obligations

108: Duration of temporary repayment suspension

You could also call this:

“How long you can pause your student loan payments while overseas”

If you have a student loan and you’re leaving New Zealand, you might be able to stop your loan repayments for a while. This is called a temporary repayment suspension. Here’s how it works:

The suspension starts from the first day you left New Zealand. This is important because it’s the day that made you an overseas-based borrower.

Your suspension will end when one of two things happens. It could end when you’ve used up all the time you’re allowed for a suspension. Or it could end when you stop being an overseas-based borrower, which means you come back to New Zealand.

After your suspension ends, if you’re still overseas, you’ll need to start repaying your loan again. The amount you need to pay will be worked out using special rules in sections 110 and 111.

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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=DLM3180246.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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107B: Grant of temporary repayment suspension, or

"Letting you pause your student loan payments when you go overseas"

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108A: Borrowers who have had, or are having, temporary repayment suspensions under Student Loan Scheme Act 1992, or

"Rules for people with pauses in student loan repayments from the old law"

Part 2 Repayment obligations of borrowers
Overseas-based borrowers' repayment obligations: Temporary repayment suspension of overseas-based repayment obligations

108Duration of temporary repayment suspension

  1. Despite section 107B(2), for the purpose of determining the duration of a temporary repayment suspension, the temporary repayment suspension of a borrower who has become entitled to it under that subsection is deemed to have commenced on the first day of the period of the borrower's physical absence from New Zealand, being the period that resulted in the borrower becoming overseas-based.

  2. The temporary repayment suspension of a borrower who has become entitled to it under section 107B(2) ends on the earlier of—

  3. the day that the borrower reaches the borrower's limit; and
    1. the day on which the borrower ceases to be overseas-based.

      1. A borrower's repayment obligation must be calculated in accordance with sections 110 and 111 if the borrower is, at any time, overseas-based after his or her temporary repayment suspension has ended.

      Notes
      • Section 108: replaced (with effect on 1 April 2012), on , by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
      • Section 108 heading: amended, on , by section 63(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section 108(1): amended, on , by section 63(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section 108(2): amended, on , by section 63(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section 108(3): amended, on , by section 63(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).