Student loan scheme - volunteer exemption

Partners Relief and Development NZ has been added to the list of organisations that are "named" for the purposes of section 38AE(1)(b) of the Student Loan Scheme Act 1992, with effect from 1 April 2010.

The effect of being "named" is that student loan borrowers working overseas as volunteers or for a token payment for these organisations may be granted an exemption, for a period of up to two years, from the requirement that they be present in New Zealand for 183 or more days to qualify for an interest-free loan.

Borrowers must be engaged in one or more of the following activities to qualify for the exemption:

• work to relieve poverty, hunger, sickness, or the ravages of war or natural disaster;
• work to improve the economy of a developing country; or
• work to raise the educational standards of a developing country.

Student loan borrowers seeking the exemption should contact their local Inland Revenue office.

Student Loan Scheme (Charitable Organisations) Amendment Regulations 2010 (SR 2010/28)