Date StudyLink ceases charging loan interest
2012 legislation relating to the transfer of the role of charging loan interest on student loan borrowers from StudyLink to IR, and timing of the change.
Schedule 5, clause 2
The role of charging loan interest on borrowers who are still studying was to transfer from StudyLink to Inland Revenue from 1 January 2012. The date this was to take effect was changed with effect from 1 April 2012.
Previously, StudyLink charged loan interest only while the borrower was studying and Inland Revenue continued this once the loan was transferred to Inland Revenue for collection. If a borrower was a New Zealand-based borrower, the loan interest charged was written off by Inland Revenue, leaving loan interest charged on overseas-based borrowers only.
StudyLink was to cease charging loan interest with effect from 1 January 2012, and Inland Revenue was to begin charging loan interest from that date. However, it was decided to be more administratively efficient for both agencies if StudyLink ceased charging loan interest from 1 April 2012 rather than 1 January 2012. For the three-month period from January to March 2012, StudyLink continued to charge loan interest and Inland Revenue delayed charging it until 1 April 2012.
As the change was enacted after January 2012, this amendment applies retrospectively from 1 January 2012.