Student loan scheme - transitional measures for new borrowers
2012 Order in Council grants relief to borrowers issued end-of-year assessments as an unintended consequence of changes in the Student Loan Scheme Act 2011.
The Student Loan Scheme Act 2011 (Transitional Provisions) Regulations 2012 enables Inland Revenue to grant relief to borrowers who were issued end-of-year assessments for the 2012 tax year as an unintended consequence of changes in the Student Loan Scheme Act 2011.
The changes in the 2011 Act replaced the loan transfer at the end of each year and provided for the transfer of loan advance debt from StudyLink to Inland Revenue on a near real-time basis from 1 January 2012.
The early transfer meant a number of borrowers received end-of-year student loan assessments which would not have been issued were it not for the near real-time transfer. In effect, borrowers who had student loans for as little as two or three weeks were sent assessments relating to their entire previous year's income.
The regulation enables Inland Revenue to grant relief to affected borrowers, with effect from 14 September 2012.
Student Loan Scheme Act 2011 (Transitional Provisions) Regulations 2012