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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

15: Right to cancel loan contract

You could also call this:

“You can change your mind and stop your student loan within a week”

You can cancel your loan contract if you want to. To do this, you need to tell the loan manager in writing within 7 working days after you get your loan entitlement letter. You also need to give back any money you got from the loan within the time the loan manager tells you to.

If you cancel your loan contract in this way, the loan manager won’t make you pay the fee for setting up the student loan. This fee is mentioned in section 14.

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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=DLM3885521.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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Part 1 Preliminary matters, loan advances, and New Zealand-based and overseas-based borrowers
Establishment of student loan

15Right to cancel loan contract

  1. A borrower may cancel his or her loan contract by—

  2. notifying the loan manager in writing of the cancellation within 7 working days of the date on which the borrower's loan entitlement letter was issued; and
    1. returning any loan advance received by the borrower under the loan contract to the loan manager within a time frame set by the loan manager.

        1. If a borrower cancels his or her loan contract in accordance with subsection (1), the loan manager must waive the student loan establishment fee charged under section 14.

        Notes
        • Section 15(1)(a): amended (with effect on 1 January 2012), on , by section 6 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
        • Section 15(1)(b): amended, on , by section 9(1) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
        • Section 15(1)(c): repealed, on , by section 9(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).