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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Relief - Hardship relief

148: Special deduction rate certificate for hardship relief

You could also call this:

“Getting help to pay less on your student loan when you're struggling with money”

If you are having trouble paying back your student loan, the Commissioner might lower your repayment amount. This is called hardship relief.

If the Commissioner lowers your repayment amount and you earn a salary or wages, they might give you a special certificate. This certificate will tell your employer to take less money from your pay for your student loan.

The certificate will say:

  • How much money should be taken from your pay
  • Which repayment code to use
  • How long this new amount should be taken from your pay

Your employer or the person who handles your pay must follow what the certificate says.

This special certificate might be part of how the Commissioner helps you pay less on your student loan when you’re having financial difficulties.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180320.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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147: Hardship relief for any tax year, or

"Help if you're struggling to pay back your student loan"

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149: Issue and application of special deduction rate certificate, or

"Getting a special document that changes how much money is taken from your pay for student loans"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Relief: Hardship relief

148Special deduction rate certificate for hardship relief

  1. Subsection (2) applies if—

  2. the Commissioner decreases the repayment obligation of a borrower under section 147; and
    1. the borrower derives salary or wages.

      1. The Commissioner may issue a special deduction rate certificate that—

      2. specifies a special deduction rate and the repayment code to be used that reflects the Commissioner's decision under section 147; and
        1. specifies the period for which the special deduction rate is to apply to the borrower; and
          1. requires the borrower's employer or PAYE intermediary to make deductions from the borrower's salary or wages at the special deduction rate.

            1. The issue of a special deduction rate certificate may form part of or all of the means by which a borrower's repayment obligation is decreased under section 147.

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            Notes
            • Section 148(2)(a): amended (with effect on 1 April 2012), on , by section 43 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).