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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Standard deductions resulting in significant under-deductions or over-deductions

67: Procedure if significant over-deduction made

You could also call this:

"What happens if too much money is taken from your student loan payments"

If too much money is taken from your student loan payments, this is called a significant over-deduction. When this happens, the Commissioner will tell you as soon as possible. They will let you know how much extra was taken, and that this extra amount has been used to reduce your total student loan balance.

You can choose to get this extra money back as a refund. However, if you also owe money on your loan or haven't paid enough in the past, the Commissioner might use the extra money to cover those amounts first.

If you want a refund, you need to tell the Commissioner within 6 months of when they first told you about the over-deduction. You must tell them in a way they approve of. Once you choose to get a refund, you can't change your mind.

Remember, the Commissioner will tell you exactly how much extra was taken, how it affects your loan, and how long you have to ask for a refund. They will also explain how to ask for the refund.

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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=DLM3885533.

Topics:
Education and learning > Higher educationMoney and consumer rights > Banking and loans
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66: Commissioner must determine whether significant over-deduction made, or

"The government checks if they took too much money for your student loan"

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68: Applicable procedures if significant under-deduction, or

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Part 2Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Standard deductions resulting in significant under-deductions or over-deductions

67Procedure if significant over-deduction made

  1. This section applies if the Commissioner—

  2. identifies that a significant over-deduction has been made in relation to a borrower; or
    1. determines (in accordance with section 66) that a significant over-deduction has been made in relation to a borrower.

      1. The Commissioner must, as soon as practicable, notify the borrower—

      2. that a significant over-deduction has been made in relation to the borrower; and
        1. of the amount of the over-deduction; and
          1. that the over-deduction has been offset against the borrower's consolidated loan balance; and
            1. that the borrower may, subject to subsections (2A) and (3), choose to receive a refund of the over-deduction (see sections 199 and 200); and
              1. of the time frame within which the borrower must notify the Commissioner if the borrower chooses to receive a refund of the over-deduction.

                1. In any case where there is also, in relation to the borrower and any tax year, a significant under-deduction or an unpaid amount that the Commissioner has at any time identified, the significant under-deduction or unpaid amount may be offset against the significant over-deduction before any refund is made.

                2. To receive a refund of the over-deduction, the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after the date on which the borrower was notified in accordance with subsection (2).

                3. A choice made by the borrower to receive a refund of the over-deduction is irrevocable.

                Notes
                • Section 67(2): amended, on , by section 13 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
                • Section 67(2)(d): amended (with effect on 1 April 2012), on , by section 24(1) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
                • Section 67(2A): inserted (with effect on 1 April 2012), on , by section 24(2) of the Student Loan Scheme Amendment Act 2012 (2012 No 32).