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Interest-free loans for borrowers returning to New Zealand

2012 amendment means student loan borrowers returning to NZ will be allowed an interest-free loan if they fully repay their loan before 183 days.

Section 38M of the Student Loan Scheme Act 1992

Borrowers who return to New Zealand will be allowed an interest-free loan if they fully repay their loan before they have been back in New Zealand for 183 days.

Background

Borrowers who return to New Zealand and fully repay their loan before they have been back for 183 days technically cease to be borrowers and therefore cannot be allowed an interest-free loan from the date they returned to New Zealand to the date they repaid their loans.

Key features

Borrowers who return to New Zealand, and fully repay their loan before they have been back for 183 days may be granted an interest-free loan from the date they returned until the date of repayment.

Application date

The amendments apply from 1 April 2006.