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Student Loan Scheme Act 2011

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

68C: Procedure if Commissioner over-deduction made

You could also call this:

"What happens if the government takes too much money for your student loan"

If the Commissioner takes too much money from you for your student loan, they will do something about it. This can happen in two ways: they might notice it themselves, or they might figure it out after looking into it.

When this happens, the Commissioner will tell you as soon as they can. They will let you know that they took too much money, how much extra they took, and that they've already used this extra amount to pay off some of your student loan.

The Commissioner will also tell you that you can choose to get this extra money back, but there are some rules about this. They will tell you how long you have to decide if you want the money back.

Sometimes, if you haven't paid enough in the past or if you owe money for your student loan, the Commissioner might use the extra money they took to cover those amounts first, before giving you any money back.

If you want to get the extra money back, you need to tell the Commissioner within 6 months after they told you about the mistake. You have to tell them in a way that they're okay with.

Once you choose to get the extra money back, 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=DLM6846888.

Topics:
Education and learning > Higher educationMoney and consumer rights > Banking and loans
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68B: Commissioner must determine whether Commissioner over-deduction made, or

"The Commissioner must check if they took too much money from you"

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

68CProcedure if Commissioner over-deduction made

  1. This section applies if the Commissioner—

  2. identifies that a Commissioner over-deduction was made in relation to a borrower; or
    1. determines (in accordance with section 68B) that a Commissioner over-deduction was made in relation to a borrower.

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

      2. that a Commissioner over-deduction was made in relation to the borrower; and
        1. of the amount of the Commissioner over-deduction; and
          1. that the Commissioner over-deduction has been offset against the borrower’s consolidated loan balance; and
            1. that the borrower may, subject to subsections (3) and (4), choose to receive a refund of the Commissioner 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 Commissioner 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 a Commissioner over-deduction identified or determined under subsection (1) before any refund is made.

                2. To receive a refund of the Commissioner 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 Commissioner over-deduction is irrevocable.

                Notes
                • Section 68C: inserted, on , by section 9 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).