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New Zealand law explained for everyone

Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Exemption from standard deductions for borrowers who are full-time students

54: Borrowers who are eligible for exemption from standard deductions

You could also call this:

“Students who don't have to make regular loan payments”

If you’re a full-time student living in New Zealand with a student loan, you might not have to make regular loan payments. This applies to you if you think you won’t earn more than a certain amount of money in a year. The amount you can earn before you have to start making payments is called the annual repayment threshold.

To figure out if you’ll earn less than the threshold, you need to look at two things: the money you get from your job (your salary or wages), and any other income you might have that’s been adjusted for tax purposes.

If you think you’ll earn less than the threshold, you can ask not to have loan payments taken out of your pay. To do this, you need to fill out a form saying you expect to earn less than the threshold. This form is called a declaration.

If your declaration is accepted, you won’t have to make loan payments for a certain period of time. This is called an exemption period.

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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=DLM3885532.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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55: Declaration by eligible borrowers for exemption from standard deductions, or

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Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Exemption from standard deductions for borrowers who are full-time students

54Borrowers who are eligible for exemption from standard deductions

  1. This section applies to a New Zealand-based borrower who—

  2. is a full-time student in a tax year (year A); and
    1. reasonably expects that the annual repayment threshold for year A will not be exceeded by his or her—
      1. gross income from salary or wages; and
        1. in the case of a borrower to whom subpart 2 applies, adjusted net income.

            1. The borrower may obtain an exemption from future standard deductions for an exemption period by making a declaration in accordance with section 55.

            Notes
            • Section 54(1)(b): replaced (with effect on 1 April 2012), on , by section 22 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
            • Section 54(1)(b)(ii): replaced (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
            • Section 54(1)(b)(iii): repealed (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
            • Section 54(1)(c): repealed (with effect on 1 April 2012), on , by section 22 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).