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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Information and determinations

62A: Commissioner may notify employers when loan balance close to zero

You could also call this:

“The government can tell your work to take less money for your student loan when you're almost done paying it”

When your student loan balance is getting close to being paid off, the Commissioner can help make sure you don’t end up paying too much. They can tell your employer or employers how much is left on your loan. The Commissioner can ask your employer to take less money from your pay than they usually would. This is to make sure you don’t pay more than you owe. Once your loan is fully paid, the Commissioner can tell your employer to stop taking money out of your pay for your student loan.

The Commissioner should let you know if they’ve told your employer about this. But if they don’t have your correct contact details or can’t find you, they might not be able to tell you. When the Commissioner tells your employer to change how much they’re taking out of your pay, it cancels any other instructions about student loan deductions that were given before.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS333728.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Information and determinations

62ACommissioner may notify employers when loan balance close to zero

  1. The purpose of this section is to reduce the likelihood that a deduction under this subpart will result in a borrower’s consolidated loan balance falling below zero.

  2. When a borrower’s consolidated loan balance is close to zero, the Commissioner may—

  3. notify 1 or more of the borrower’s employers of the loan balance; and
    1. require the employer, or those employers, to reduce the standard deduction that would otherwise be made on the relevant payday or paydays to the amount needed to meet the purpose of this section; and
      1. require the employer, or those employers, then to stop making deductions under this subpart.

        1. The Commissioner must give a copy of the notification to the borrower.

        2. However, subsection (3) does not apply if the Commissioner is aware that he or she has incorrect contact details for the borrower or cannot reasonably locate the borrower.

        3. The notification revokes, for the payday or paydays, all other deduction rate certificates previously issued to the employer or those employers in relation to the borrower under this subpart.

        Notes
        • Section 62A: inserted, on , by section 57 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).