Retaining the current loan interest calculation and interest-free write-off
Student Loan Scheme Amendment Act 2013 retains the existing rules around the current loan interest calculation and interest-free write-off. Applies from 1 Apr 2013.
Sections 2, 196, 221 (repealed), schedule 7 (repealed) and sections 2 and 57(repealed) of the Student Loan Scheme Amendment Act 2012
Changes to the way loan interest is calculated, charged, and compounded have been repealed.
The changes were to come into force on 1 April 2013. Repealing these changes thereby retains the existing rules so that loan interest continues to be accrued daily, charged and compounded annually. This also means that loan interest will continue to be charged for all borrowers and the interest-free write-off applied for New Zealand-based borrowers only.
As a consequence of this change, section 196 has been amended to ensure borrowers who repay their loan in full within 30 days of the Commissioner notifying them of their outstanding balance continue to receive the previous treatment of writing off loan interest that has accrued from the date of notification to the date the loan is repaid.
The amendments apply from 1 April 2013.