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Student Loan Scheme Act 2011

Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers - Establishment of student loan

13: Certain information must be disclosed in loan contract

You could also call this:

“Your student loan contract must explain key details about your loan”

When you get a student loan after 31 March 2012, your loan contract must tell you some important things. These things are true on the day you sign the contract.

The contract will tell you how much money you need to earn each year before you have to start paying back your loan. It will also tell you the interest rate and what percentage of your income you’ll need to pay back.

You’ll see how much you have to pay to set up your loan and how much you have to pay each year to keep it going.

The contract will explain that you can change your mind and cancel the loan if you want to. It will also tell you that you can disagree with the amount of money they say they’ve given you.

If you do disagree, the contract will tell you how long you have to tell them.

There might be other things in the contract too, if the government decides there should be.

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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=DLM3553400.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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12: Loan manager must provide copy of loan contract, or

"You get a copy of your student loan agreement soon after signing"

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"You pay a small fee when you get a new student loan"

Part 1 Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers
Establishment of student loan

13Certain information must be disclosed in loan contract

  1. Every loan contract entered into after 31 March 2012 must specify the following information that applies at the date the loan contract is entered into:

  2. the annual repayment threshold:
    1. the base interest rate:
      1. the repayment percentage:
        1. the amount of the student loan establishment fee charged under section 14:
          1. the amount of the annual administration fee charged under section 189:
            1. the borrower's right, under section 15, to cancel the loan contract:
              1. the borrower’s right to object to the details of loan advances set out in a notification given to the borrower in accordance with section 18:
                1. the timeframe within which an objection by a borrower under section 167 must be received by the loan manager (see section 18(2)(e)):
                  1. any further information specified in regulations.

                    Notes
                    • Section 13(g): replaced (with effect on 1 April 2012), on , by section 6 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
                    • Section 13(h): replaced (with effect on 1 April 2012), on , by section 6 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).