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Student Loan Scheme Act 2011

Repayment obligations of borrowers - Overseas-based borrowers' repayment obligations - Temporary repayment suspension of overseas-based repayment obligations

107B: Grant of temporary repayment suspension

You could also call this:

“Letting you pause your student loan payments when you go overseas”

The Commissioner can give you a temporary break from repaying your student loan if you’re going overseas. You can ask for this break if you haven’t used up all your allowed time and if you’ve followed the rules in section 107A.

If you get this break, it starts on the day you become based overseas.

There’s a limit to how long you can have this break. You reach your limit if:

You’ve had breaks adding up to 365 days under this law, or You’ve had breaks adding up to 3 years under an older law, or You’ve had some breaks under the old law and some under the new law that add up to either 365 days or the rest of what you could have had under the old law, whichever is less, or You’ve already had your break extended for as long as possible under the old law.

Once you reach your limit, you can’t get any more breaks from repaying your loan.

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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=DLM4425737.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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107A: Contact person to be nominated, or

"You must choose a person in New Zealand to be your contact when you pause your overseas student loan payments"

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108: Duration of temporary repayment suspension, or

"How long you can pause your student loan payments while overseas"

Part 2 Repayment obligations of borrowers
Overseas-based borrowers' repayment obligations: Temporary repayment suspension of overseas-based repayment obligations

107BGrant of temporary repayment suspension

  1. The Commissioner may grant a temporary repayment suspension to a borrower who applies under section 107 if satisfied that the borrower—

  2. has not reached the borrower's limit; and
    1. has complied with section 107A.

      1. A borrower who is granted a temporary repayment suspension becomes entitled to that temporary repayment suspension on the day on which the borrower becomes overseas-based.

      2. For the purposes of this subpart, a borrower reaches the borrower's limit if—

      3. the borrower has had 1 or more temporary repayment suspensions, granted under this Act, for a period of 365 days or for periods that total 365 days; or
        1. the borrower has had 1 or more temporary repayment suspensions under Part 3 of the Student Loan Scheme Act 1992 for a period of 3 years or for periods that total 3 years; or
          1. the borrower has had—
            1. 1 or more temporary repayment suspensions under Part 3 of the Student Loan Scheme Act 1992 for a period of less than 3 years or for periods that total less than 3 years; and
              1. 1 or more temporary repayment suspensions, granted under this Act, for a period that equals, or for periods that in total equal, the lesser of—
                1. 365 days; and
                  1. the remainder of the period of the temporary repayment suspension to which the borrower would have been entitled under Part 3 of the Student Loan Scheme Act 1992 if that Act had not been repealed; or
                2. the borrower has had his or her temporary repayment suspension under Part 3 of the Student Loan Scheme Act 1992 continued under section 108A(2) for the maximum period prescribed for that continuation.

                  Notes
                  • Section 107B: inserted (with effect on 1 April 2012), on , by section 30 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).
                  • Section 107B heading: amended, on , by section 62(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(1): amended, on , by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(2): amended, on , by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(3)(a): amended, on , by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(3)(b): amended, on , by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(3)(c)(i): amended, on , by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(3)(c)(ii): amended, on , by section 62(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(3)(c)(ii)(B): amended, on , by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 107B(3)(d): amended, on , by section 62(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).