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. This interest is written off if you're living in New Zealand.
Who looks after student loans?
There are three government departments involved when you get a student loan:
- Ministry of Education - advises the Government about student policies and approves study programmes.
- Ministry of Social Development (MSD) - StudyLink, a division of MSD, is responsible for making loans available and managing student loan payments for course fees, weekly living costs and course related costs.
- Inland Revenue (IRD) - is responsible for administering your loan once you've drawn down from it and collecting loan repayments from you.
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.
Go to Studylink's website to find out more about applying for a student loan, and other options to help fund your study.
Repaying your student loan
You start repaying your student loan when your pay (before tax is deducted) goes over the pay period repayment threshold. The amount deducted from your to pay is 10 cents for every dollar you earn over the pay period repayment threshold.
If you want to work out how much your repayments will be, you can calculate it yourself on the PAYE/KiwiSaver calculator.
Find out more about repaying your student loan
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 loan repayment calculator
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