Grace period

Student loan borrowers who were advised of the amount of their outstanding loan balance and fully repaid that amount within 15 days of receiving the advice had any interest charged in the intervening period cancelled.

Section 60A of the Student Loan Scheme Act 1992

Student loan borrowers who were advised of the amount of their outstanding loan balance and fully repaid that amount within 15 days of receiving the advice had any interest charged in the intervening period cancelled. As student loans are interest-free for New Zealand-based borrowers, this provision only affects overseas-based borrowers. It may take more than 15 days for the statement to reach the borrower and the transfer of funds to reach New Zealand. The Student Loan Scheme Act has therefore been amended to increase the period in which borrowers may fully repay their loan without incurring any further interest from 15 to 30 days.

Application date

The amendment applies from the day after Royal assent - 7 March 2010.