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Interest write-offs validated

Borrowers who had an interest write-off to which they were not entitled but had repaid their loans by 13 Nov 2006 will not have the write-off reversed.

Section 88 of the Student Loan Scheme Act 1992

Borrowers who had an interest write-off to which they were not entitled, but had repaid their loans by 13 November 2006, will not have the write-off reversed.

Background

A significant number of borrowers have received interest write-offs to which they were not entitled, and the write-offs would otherwise need to be reversed.

Key features

Section 88 ensures that borrowers whose loan balance was treated by the Commissioner as being zero on 13 November 2006 and who received one of the interest write-offs described under the background "Removal of interest write-offs for borrowers ineligible for interest-free loans" have had that interest write-off validated. This applies despite anything else in any other enactment or in a loan contract, but does not affect any loan obtained by the borrower under the student loan scheme after 13 November 2006.

Application date

The changes came into force on 28 March 2007.