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Student Loan Scheme Act 2011

Matters of general application and miscellaneous matters - Miscellaneous matters - Interaction with loan contracts and other enactments

204: Commissioner may exercise rights in loan contracts to recall loans

You could also call this:

“The government can ask you to pay back your student loan”

The Commissioner can use any right or power in a loan contract to ask for all or part of a loan to be paid back. This means the Commissioner can recall a loan or demand that you repay it.

The Commissioner can do this using their own name. They don’t need the lender to give them permission or assign this right to them.

This rule applies in all cases. It doesn’t matter if the Commissioner is the lender or not. It also doesn’t matter if the loan contract gives this right to the Commissioner or someone else. This rule is stronger than section 203 or anything else in the loan contract or any other law.

The Commissioner can use this power for any loan contract, no matter when it was signed. It could be a contract signed before, on, or after the day this rule started.

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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=DLM3526700.

Topics:
Money and consumer rights > Banking and loans Education and learning > Higher education
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Part 5 Matters of general application and miscellaneous matters
Miscellaneous matters: Interaction with loan contracts and other enactments

204Commissioner may exercise rights in loan contracts to recall loans

  1. The Commissioner may exercise any right or power in a loan contract to recall or demand repayment of all or any part of a loan advance or a loan balance.

  2. To avoid doubt, the right or power may be exercised in the name of the Commissioner without any assignment by the lender.

  3. This section applies—

  4. whether or not the Commissioner is the lender under the loan contract or a person on whom the loan contract confers the right or power; and
    1. despite section 203 or anything in the loan contract or any other Act; and
      1. whether the loan contract was signed before, on, or after the date on which this section comes into force.

        Notes
        • Section 204(3)(c): amended, on , by section 36 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).