NEWS - Changes to Student Loan 2013
Some changes to NZ student loans are going to be implemented over the next two years.
Increasing the repayment rate for Student Loan borrowers
From 1 April 2013, the Student Loan repayment rate will increase from 10 cents to 12 cents in every dollar earned over the repayment threshold of $367 per week or $19,084 annually.
Voluntary repayment bonus
Currently students who make voluntary payments of $500 or more within a tax year on top of their Student Loan repayment obligations qualify for an additional 10% bonus that is credited to their loan account.
The voluntary repayment bonus will be removed from 1 April 2013.
New matching agreement between New Zealand Customs Service and Inland Revenue
The information match between Inland Revenue and the New Zealand Customs Service will be extended to identify Student Loan borrowers in serious default, so Inland Revenue can immediately initiate contact with the borrower.
Broadening the definition of income for Student Loan repayments
The definition of income for Student Loan repayment purposes is being extended to better align with the Working for Families definition and the parental income test for Student Allowances. This change will come into affect as of 1 April 2014.
Posted: Wed 27 Feb 2013