Student loans

What is a student loan?

The student loan scheme allows students to take out a loan with the Government while they are studying at tertiary institutions, like universities and polytechnics.

The loan is to help students pay compulsory fees, course-related costs and living expenses. If you have a student loan balance, you're charged interest. Under the new interest-free student loan legislation, this interest may be written off at the end of each financial year, if you're living in New Zealand.

Who looks after student loans?

There are three government departments involved when you get a student loan:

1. Ministry of Education - advises the Government about student policies and approves study programmes.
2. Ministry of Social Development (MSD) - StudyLink, a division of MSD, is responsible for making loans available and managing student loan accounts in the first year of the loan. After the end of the year StudyLink transfers the loan balance, and interest accrued, to Inland Revenue. This ends StudyLink's involvement with the loan unless the student takes out another loan.
3. Inland Revenue (IRD) - StudyLink transfers the year's loan balance to IRD the following 28 February. From then on we're responsible for collecting loan repayments.

Can you apply for a student loan?

You can apply for a student loan if:

• you're studying at a tertiary institution and your study programme has been approved by the Tertiary Education Commission, and
• you're 18 or over (you can still get a student loan if you're under 18, but you have to get your parent's, guardian's or caregiver's permission), and
• you're a New Zealand citizen, or have permanent resident or refugee status.

Where can you apply?

Go to StudyLink or call them on 0800 889 900.

How do you repay a student loan?

You start repaying your student loan when your annual income goes over a repayment threshold. The minimum amount you have to pay is 10 cents for every dollar you earn over that amount.

How will this affect you?

Check out Real lives to see:

Andy's story - he's a university graduate with a full-time job and a student loan to pay off.

Krystal's story - she's a first-year university student with a student loan, and needs a tax code for her second part-time job.

Want to know more?

Student loans

Student loan repayment calculator