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New Zealand law explained for everyone

Student Loan Scheme Act 2011

Excess repayments

119: Meaning of excess repayment

You could also call this:

“What happens when you pay too much on your student loan”

An excess repayment happens when you pay more than you need to for your student loan in a tax year. It’s the money left over after you’ve paid all your required repayments, any penalties, and any unpaid amounts.

When the Commissioner figures out if you’ve made an excess repayment, they don’t count normal deductions from your pay (unless it’s a big over-deduction). They also don’t count deductions or payments that were later given back to you. If you were given any relief from repayments, the Commissioner will pretend you weren’t when working this out. They also won’t count any fees that your school gave back, or any money you got from the final-year fees-free scheme.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3885557.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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118: Interpretation, or

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Part 3 Excess repayments

119Meaning of excess repayment

  1. An excess repayment, in relation to a borrower and a tax year, is any amount paid or deducted in relation to the borrower's consolidated loan balance for the tax year that is in excess of the total of—

  2. all repayment obligations of the borrower for the tax year; and
    1. all penalties charged to the borrower for the tax year; and
      1. the borrower's unpaid amounts.

        1. In determining whether an excess repayment has been made, the Commissioner must—

        2. disregard any standard deduction (other than a significant over-deduction) or Commissioner deductions for the purposes set out in section 49(1)(a); and
          1. disregard a salary or wage deduction or a payment made to the Commissioner that is subsequently refunded; and
            1. treat a borrower's repayment obligation as if any relief granted under section 147 had not been granted; and
              1. disregard any fee refunded by an education provider to the loan manager or the Commissioner; and
                1. disregard an entitlement under the final-year fees-free scheme.

                  Notes
                  • Section 119: replaced, on (applying for 2013–14 and later tax years), by section 57 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
                  • Section 119(2)(e): inserted (with effect on 1 January 2025), on , by section 259 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).