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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

20: Borrower must be notified of certain changes to obligations

You could also call this:

"The government must tell you if your student loan rules change"

Illustration for Student Loan Scheme Act 2011

If you have a student loan, the Commissioner needs to tell you about certain changes to your loan that might make you owe more money. This includes changes to how much you need to repay, the percentage you need to repay, or the base interest rate. They have to tell you about these changes if they happen without you agreeing to them first, or if they happen because of a new law.

The Commissioner has to let you know about these changes within 7 months after they happen. But if the Commissioner doesn't have your correct contact details or can't find you, they don't have to tell you about the changes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3885524.

Topics:
Education and learning > Higher educationMoney and consumer rights > Banking and loans
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19: Commissioner must inform borrowers about consolidated loan balance, or

"Inland Revenue tells you how much you owe on your student loan"

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21: Overview of being New Zealand-based or overseas-based, or

"Explains when you're based in New Zealand or overseas for your student loan"

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

20Borrower must be notified of certain changes to obligations

  1. The Commissioner must notify a borrower if—

  2. a change is made to the borrower's obligations in relation to his or her student loan; and
    1. that change increases the borrower's obligations in a more than minor way, including a change to—
      1. the borrower's repayment obligation; or
        1. the repayment percentage; or
          1. the base interest rate; and
          2. that change is made—
            1. without the borrower's prior agreement; or
              1. by, or as a consequence of, an enactment.

              2. Details of the change must be notified to the borrower within 7 months after the day on which the change is made.

              3. However, subsections (1) and (2) do not apply if the Commissioner is aware that he or she has incorrect contact details for the borrower or cannot reasonably locate the borrower.

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