The student loan scheme lets students to take out a loan from 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.
There are three government departments involved when you get a student loan:
You can apply for a student loan if:
Go to Studylink's website (external link) 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 12 cents for every dollar you earn over the pay period repayment threshold (external link) .
If you have more than one job, you’ll need to use a secondary tax code with the "SL" repayment code and your employer will deduct repayments for your student loan from your pay at 12 cents for every dollar you earn.
If you want to work out your repayment amounts, you can do this using the PAYE/KiwiSaver calculator (external link) .
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.