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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Interest - Loan interest charged for all overseas-based borrowers

135: Loan interest calculated daily and charged and compounded annually

You could also call this:

"Interest on student loans for overseas borrowers grows daily and adds up yearly"

If you have a student loan and you're living overseas, you need to pay interest on your loan. Here's how it works:

The government calculates interest on your loan every day. This happens as long as you still owe money on your loan and you're living outside of New Zealand.

At the end of each year, the government adds up all the interest you owe and puts it on top of your loan balance. Sometimes, they might do this earlier in the year if they want to.

This means that your loan balance grows a little bit every day you're overseas, and once a year, all that interest gets added to what you owe.

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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=DLM3818804.

Topics:
Money and consumer rights > Banking and loansEducation and learning > Higher education
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134: Loan interest charged for all overseas-based borrowers, or

"People who study in NZ and move overseas must pay interest on their student loans"

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136: Notification that loan interest has compounded, or

"Loan company tells you when they've added interest to what you owe"

Part 4Interest, relief, penalties and offences, rights of objection, and rights to challenge
Interest: Loan interest charged for all overseas-based borrowers

135Loan interest calculated daily and charged and compounded annually

  1. Loan interest is calculated and accrues each day—

  2. that a borrower has a loan balance; and
    1. that a borrower is overseas-based.

      1. Loan interest is charged and added to a borrower's loan balance on the last day of each year or an earlier date determined by the Commissioner, at his or her discretion, that is within the relevant tax year.

      Notes
      • Section 135(1): replaced, on , by section 121 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
      • Section 135(2): amended (with effect on 1 April 2012), on , by section 41(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).