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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Salary or wage deductions

39: Employer or PAYE intermediary must make borrower deductions from salary or wages

You could also call this:

“Your boss can take extra money from your pay to help pay off your student loan if you ask them to”

If you’re a student borrower, you can ask your employer or the person who handles your pay (called a PAYE intermediary) to take extra money out of your wages to pay off your student loan. This is on top of the regular amount they already take out.

When you ask for this, your employer or PAYE intermediary must take out the extra amount you’ve requested each time they pay you. They’ll keep doing this until you tell them to stop.

These extra deductions are added to the standard deductions and any deductions the Commissioner might have asked for. They use a special code called ‘SLBOR’ to mark these extra payments.

Remember, you can still make other types of loan repayments as well. This extra deduction doesn’t change your other options for paying back your loan.

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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=DLM3834508.

Topics:
Money and consumer rights > Banking and loans Education and learning > Higher education
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38: Employer or PAYE intermediary must make Commissioner deductions from salary or wages, or

"Your employer must take extra money from your pay for your student loan if asked"

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40: Deductions from main benefits, or

"Special rules for taking student loan payments from your main benefit"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Salary or wage deductions

39Employer or PAYE intermediary must make borrower deductions from salary or wages

  1. This section applies if a borrower requests his or her employer or PAYE intermediary to make deductions at an additional deduction rate or of a specified amount.

  2. Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount at the additional deduction rate, or of the amount, requested by the borrower.

  3. Deductions made in accordance with this section must—

  4. be made in addition to standard deductions and, if applicable, Commissioner deductions; and
    1. have the repayment code SLBOR applied to them; and
      1. continue to be made until the borrower notifies his or her employer or PAYE intermediary otherwise.

        1. Nothing in this section limits section 36, 37, or 38.

        Compare
        Notes
        • Section 39(3)(b): amended (with effect on 1 April 2012), on , by section 14 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).