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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

136: Notification that loan interest has compounded

You could also call this:

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

When interest is added to your student loan balance, the Commissioner will let you know in writing as soon as possible. They will tell you that interest has been added, what your new loan balance is, and that this new balance will also have interest added to it in the future.

The Commissioner can also tell you about your loan balance and interest at any other time they choose to. This means you might get updates about your loan even when interest hasn’t just been added.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3818806.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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135: Loan interest calculated daily and charged and compounded annually, or

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

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137: Full interest write-off for New Zealand-based borrowers, or

"No more special interest rules for people with student loans living in New Zealand"

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

136Notification that loan interest has compounded

  1. The Commissioner must, as soon as practicable after loan interest has been added to a borrower's loan balance in accordance with section 135(2), notify the borrower in writing—

  2. that loan interest has been added to the borrower's loan balance; and
    1. of the new total of the borrower's loan balance; and
      1. that the new total of the borrower's loan balance is itself subject to loan interest.

        1. The Commissioner may notify a borrower in writing of the borrower's loan balance and loan interest at any other time the Commissioner chooses.

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