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Student Loan Scheme Act 2011

Repayment obligations of borrowers - Overseas-based borrowers' repayment obligations - Calculation and payment of overseas-based repayment obligation

110: Repayment obligations of overseas-based borrowers

You could also call this:

“How much you need to pay back on your student loan if you live overseas”

If you are a borrower who lives overseas, this law explains how much you need to repay on your student loan each year. This applies to you if you can’t pause your repayments and haven’t had your repayment amount changed.

The amount you need to repay depends on how much you owe:

If you owe $15,000 or less, you need to repay $1,000 per year. If you owe between $15,001 and $30,000, you need to repay $2,000 per year. If you owe between $30,001 and $45,000, you need to repay $3,000 per year. If you owe between $45,001 and $60,000, you need to repay $4,000 per year. If you owe more than $60,000, you need to repay $5,000 per year.

If you’re only overseas for part of the year, you’ll pay a smaller amount. To figure out how much, you need to count the days you’re overseas and use a special calculation.

The law also explains some special terms. If you were living overseas on 31 March 2014 and have stayed overseas since then, you’re called an “existing borrower”. The “start date” is either 31 March 2014 for existing borrowers, or the day you moved overseas for everyone else. The “relevant loan balance” is usually how much you owed on the start date, but it can change if your loan gets bigger.

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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=DLM3180250.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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109: Assessments for years in which borrower is overseas-based, or

"Figuring out your student loan payments when you live overseas"

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111: Exceptions to repayment obligations of overseas-based borrowers, or

"When overseas borrowers don't have to pay back their full student loan"

Part 2 Repayment obligations of borrowers
Overseas-based borrowers' repayment obligations: Calculation and payment of overseas-based repayment obligation

110Repayment obligations of overseas-based borrowers

  1. This section applies to an overseas-based borrower who—

  2. is not or is no longer entitled to a temporary repayment suspension under section 107B or 108A(2); and
    1. has not had his or her overseas-based repayment obligation reassessed under section 115A.

      1. The borrower's repayment obligation for every full tax year during which this section applies to the borrower is—

      2. $1,000, if the relevant loan balance is less than or equal to $15,000:
        1. $2,000, if the relevant loan balance is more than $15,000 but less than or equal to $30,000:
          1. $3,000, if the relevant loan balance is more than $30,000 but less than or equal to $45,000:
            1. $4,000, if the relevant loan balance is more than $45,000 but less than or equal to $60,000:
              1. $5,000, if the relevant loan balance is more than $60,000.

                1. The borrower's repayment obligation for any portion of a tax year (being less than a full tax year) during which this section applies to the borrower must be calculated in accordance with the following formula:

                  (x ÷ 365) × y

                  Where:

                  • x x

                    is the number of days in the tax year during which this section applies to the borrower

                  • y y

                    is the amount that would apply under subsection (2) if this section applied to the borrower for the full tax year.

                2. In this section—

                  existing borrower means a borrower who was overseas-based on 31 March 2014 and has been continuously overseas-based since that date

                    relevant loan balance means the borrower's consolidated loan balance on the start date or, if the borrower's consolidated loan balance increases, the greatest balance on any 31 March after the start date but before the last day of the tax year

                      start date means,—

                      1. for an existing borrower, 31 March 2014:
                        1. for any other borrower, the day when the borrower becomes overseas-based.

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                        Notes
                        • Section 110: replaced, on , by section 6 of the Student Loan Scheme Amendment Act 2014 (2014 No 6).
                        • Section 110(1)(a): amended, on , by section 65 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).