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Student Loan Scheme Act 2011

Excess repayments

121: Options that apply to excess repayments

You could also call this:

“What you can do if you pay too much on your student loan”

If you make an excess repayment on your student loan, you have two choices. You can either get a refund of the extra money you paid, or you can use it to pay off future amounts you owe on your loan. You can find more details about how to do this in subpart 2 of the law.

However, if you’ve paid more than your total loan balance, the Commissioner must refund that extra amount to you. You can learn more about this in sections 199 and 200 of the law.

This rule about refunding any amount over your total loan balance is more important than the rule in section 131(1)(a) of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180275.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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120: Commissioner must notify borrower of excess repayment, or

"The government tells you if you've paid too much on your student loan"

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122: Exception to general rule if repayment obligations for prior tax years reassessed, or

"Special rule for fixing past student loan payment mistakes"

Part 3 Excess repayments

121Options that apply to excess repayments

  1. If an excess repayment is made for a borrower, the borrower may—

    1. choose to receive a refund of the excess repayment in accordance with subpart 2; or
      1. choose to use the excess repayment to satisfy a future repayment obligation of the borrower in accordance with subpart 2.

        1. However, any part of an excess repayment that exceeds a borrower's consolidated loan balance—

          1. must be refunded by the Commissioner (see sections 199 and 200).

            1. Subsection (2) overrides section 131(1)(a).

            Notes
            • Section 121(1)(a): repealed, on (applying for 2013–14 and later tax years), by section 6(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).
            • Section 121(2)(a): repealed, on (applying for 2013–14 and later tax years), by section 6(1) of the Student Loan Scheme (Budget Measures) Amendment Act 2012 (2012 No 39).