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Student Loan Scheme Act 2011

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

196: Cancellation of interest if consolidated loan balance repaid early

You could also call this:

“No interest if you pay off your entire student loan quickly after being told how much you owe”

If you have a student loan, the Commissioner might tell you how much you owe in total. This is called your consolidated loan balance. If you pay off all of this money within 30 days of being told about it, you get a special benefit. The Commissioner will cancel any interest that would have been added to your loan between the time they told you about your balance and when you paid it off.

This rule also applies if you were told about your loan balance on or after 2 March 2012 under an older law called the Student Loan Scheme Act 1992.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180403.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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195B: Date on which final-year fees-free entitlement treated as being credited, or

"When your final-year fees-free money is added to your student loan account"

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197: Write-off of consolidated loan balance, or

"Your student loan can be completely wiped out if you die or owe very little"

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

196Cancellation of interest if consolidated loan balance repaid early

  1. Subsection (2) applies if—

  2. the Commissioner informs or notifies a borrower of the borrower's consolidated loan balance (the notification); and
    1. the borrower pays the consolidated loan balance stated in the notification in full within 30 days after the date of the notification.

      1. The Commissioner must cancel any loan interest that is calculated and accrued between the date of the notification and the date on which the payment is received.

      2. A notification provided on or after 2 March 2012 under section 60A(1) of the Student Loan Scheme Act 1992 is treated as being a notification under subsection (1).

      3. Repealed
      Compare
      Notes
      • Section 196(1)(a): amended, on (applying for 2013–14 and later tax years), by section 67(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
      • Section 196(2): replaced (with effect on 1 April 2012), on , by section 50 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
      • Section 196(4): repealed, on (applying for 2013–14 and later tax years), by section 67(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).