Student loans Dates
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JAN 15Interim student loan repayments are due. They count towards your end-of-year repayment obligation.
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FEB 7End-of-year student loan repayments are due. If you have an amount to pay, you'll have received a letter or text message from us.
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APR 1We add an administration fee to student loans to help pay for some of the ongoing costs of administering the loan
If you're a New Zealand-based customer, you're entitled to an interest-free student loan.
If you become overseas-based interest will be added to your student loan, but there are some situations where interest is not charged. It's calculated each day on your loan balance using the current interest rate. Interest is always included in your loan balance, but interest is only charged on this interest after 31 March each year.
The interest rate is set at the start of each tax year, 1 April. The annual interest rate is currently 3.3%.
Moving overseas or returning to New Zealand
Late payment interest
If you do not make your payments on time, we may charge late payment interest.
This is only charged on the overdue amount, and only if the overdue amount is $334 or more. It will keep being charged until you have caught up with your payments.
The late payment interest rate is currently 7.3%. This is calculated as a monthly rate of 0.588%. The standard interest rate applies to the rest of your loan.
Reduced late payment interest rates
If you contact us about late payments on your student loan, we may be able to reduce the amount of late payment interest you need to pay.
You can arrange an instalment plan to pay off your late payment amount. If you stick to the plan we can switch you to the reduced late payment rate so you pay less interest.
The reduced late payment interest rate is currently 5.3%. This is calculated as a monthly rate of 0.431%.
| Tax year | Annual interest rate | Late payment interest rate | Reduced late payment interest rate |
|---|---|---|---|
| 2025 | 3.3% | 7.3% | 5.3% |
| 2024 | 2.9% | 6.9% | 4.9% |
| 2023 | 2.8% | 6.8% | 4.8% |
| 2022 | 3% | 7% | 5% |
| 2021 | 3.5% | 7.5% | 5.5% |
| 2020 | 4% | 8% | 6% |
| 2019 | 4.3% | 8.3% | 6.3% |
| 2018 | 4.4% | 8.4% | 6.4% |
| 2017 | 4.8% | 8.8% | 6.8% |
| 2016 | 5.3% | 9.3% | 7.3% |
Administration fee
If your student loan balance is $20 or more at 31 March we will charge a $40 administration fee. This is to cover the costs of managing your loan. You will not be charged an administration fee in the same year you've been charged an establishment fee.