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Student Loan Scheme Act 2011

Excess repayments - Refund of excess repayments and satisfaction of future repayment obligation

132: Borrower may receive refund or apply excess repayment to future repayment obligations

You could also call this:

"You can choose to get money back or pay ahead if you've overpaid your student loan"

If you have paid more than you need to on your student loan, you have a choice about what to do with the extra money. You can either get the money back as a refund, or you can use it to pay off future amounts you owe on your loan.

If you want to make this choice, you need to tell the Commissioner. You can do this in any way the Commissioner accepts. You have 6 months to do this, starting from the latest of these dates:

  • When you were told about the extra payment
  • The day after the end of the tax year when you made the extra payment
  • The day after you were supposed to make your last payment if you're based overseas

If you choose to get a refund, you can't change your mind later.

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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=DLM3885563.

Topics:
Education and learning > Higher educationMoney and consumer rights > Banking and loans
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131: Limit on use of excess repayments, or

"Small extra payments on your student loan might not be returned or used for future payments"

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133: No interest applied to student loans except as specified in this Part, or

"Student loans usually don't grow with interest, except in special cases"

Part 3Excess repayments
Refund of excess repayments and satisfaction of future repayment obligation

132Borrower may receive refund or apply excess repayment to future repayment obligations

  1. A borrower may choose for the whole or part of an excess repayment to be—

  2. refunded (see sections 199 and 200); or
    1. used to satisfy a future repayment obligation of the borrower.

      1. To exercise a choice under subsection (1), the borrower must notify the Commissioner in a manner acceptable to the Commissioner within 6 months after whichever is the latest of the following:

      2. the date on which the borrower was notified of the excess repayment in accordance with section 120:
        1. the day after the end of the tax year to which the excess repayment relates:
          1. the day after the due date of the final instalment of the borrower's overseas-based repayment obligation.

            1. A choice made by the borrower to receive a refund of an excess repayment is irrevocable.

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            Notes
            • Section 132(2): replaced, on , by section 22 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).