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Student Loan Scheme Act 2011

Matters of general application and miscellaneous matters - Matters of general application

191: Limit on repayment obligation for pay period or tax year

You could also call this:

“You can't be asked to pay back more than you owe on your student loan”

If you have a student loan and you earn money from a job, there’s a limit on how much you have to pay back each time you get paid. This limit is the amount you still owe on your loan at the end of your pay period. You won’t have to pay more than what you owe.

If you earn money in other ways during a tax year, there’s also a limit on how much you have to pay back at the end of that year. This limit is the amount you still owe on your loan when you file your tax return or at the end of the tax year, whichever comes first.

For people who live overseas, there are special rules about how much they have to pay back.

When figuring out how much you owe, the government will subtract any payments they’ve already asked you to make.

These rules are very important and apply no matter what other parts of the law say.

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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=DLM3180385.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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190: Tax year other than 12 months due to change in balance date, or

"When you change your tax date, your loan repayment amount might change"

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192: Payment date not otherwise specified, or

"You have 30 days to pay if no specific date is given"

Part 5 Matters of general application and miscellaneous matters
Matters of general application

191Limit on repayment obligation for pay period or tax year

  1. If a borrower derives salary or wages for a tax year, the borrower's repayment obligation for a pay period in that tax year must not exceed the amount of the borrower's consolidated loan balance on the last day of the pay period.

  2. If a borrower derives adjusted net income for a tax year, the borrower’s end-of-year repayment obligation for that tax year must not exceed the amount of the borrower’s loan balance,—

  3. if the borrower files their return of income or provides a statement of adjusted net income before the end of that tax year, on the day on which the borrower files the return or provides the statement; and
    1. in any other case, on the last day of that tax year.

      1. Section 111(2) applies to overseas-based borrowers.

      2. For the purposes of subsections (1) and (2), the amount of the borrower's consolidated loan balance on the day referred to in each of those provisions must be determined by subtracting the amount of any repayment obligation or other amount that the Commissioner has, on or before that day, required the borrower to pay and that is payable on or after that day.

      3. This section applies despite anything to the contrary in this Act.

      Compare
      Notes
      • Section 191(1): amended, on , by section 74(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section 191(1): amended, on , by section 74(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section 191(1): amended, on , by section 34(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
      • Section 191(2): replaced, on , by section 74(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
      • Section 191(3A): inserted (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 34(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
      • Section 191(3A): amended, on , by section 74(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).