First serious point is if you’re going overseas for 6 months or more your New Zealand student loan won’t be interest free.
Below is all the info you need including repayment amounts and a student loan repayment calculator.
On this page you will find the below helpful information:
If you travel outside New Zealand for more than six months the IRD don’t base your repayments on your income, they base the payments on your student loan balance and charge interest to the balance owing.
Each year you’re away the IRD will work out your repayment amounts again. Your new repayment amounts will be available after 31 March.
Your minimum annual repayment obligation as at:
You can make voluntary repayments anytime, but you must meet the installment dates of 30 September and 31 March.
Instalment date payments are 50% of your repayment obligation. This will only be different if you’ve made other arrangements with the IRD.
Your repayment obligation stays the same if your loan balance decreases. But, if your balance increases your repayment obligation will increase.
You can check what you owe and when your repayments are due in your myIR Secure Online Services account.
The below table shows how much you need to pay depending on your loan balance.
| When your loan balance is: | 30 September | 31 March |
|---|---|---|
| under $1,000 | you need to pay your whole loan balance | |
| $1,000 and up to $15,000 | $500 | $500 |
| over $15,000 and up to $30,000 | $1,000 | $1,000 |
| over $30,000 and up to $45,000 | $1,500 | $1,500 |
| over $45,000 and up to $60,000 | $2,000 | $2,000 |
| over $60,000 | $2,500 | $2,500 |
Depending on the size of your loan (over $90,000) your repayments might not be enough to cover your interest.
When you leave New Zealand during the tax year you might have:
Use the IRD student loan repayment calculator to work out how much interest will be added to your loan and how long it’ll take to pay it off.
Below is an example using a student loan amount of $10,000:
If you’ve missed payments the IRD may charge you late payment interest. If you’re having difficulty repaying your loan contact the IRD. They might be able to offer you some payment options. Talk to them if:
They may stop you leaving New Zealand next time you travel if this has happened, so make sure you contact them.
Your loan will remain interest-free if you’re going overseas for 183 consecutive days or less (about 6 months) and you’ve have been living in New Zealand for at least 183 consecutive days prior to leaving. You’ll still see interest being applied but this is automatically written off.
Please note: if you travel overseas for less than 6 months on a regular basis, your loan will remain interest-free as long you’re back in New Zealand for 32 days or more before you leave again.
If you’ll earn New Zealand salary or wages while you’re away, you’ll still be required to have student loan repayments deducted from this income.
If you earn any other income from New Zealand and/or overseas income while you’re away, you’ll need to let us know after the end of the tax year (31 March). This is because you’re still a New Zealand- based borrower and your repayments are based on your worldwide income.
If you have any other repayment obligation due while you’re away, or would like to make voluntary repayments, there are a number of ways you can make a payment.
Find out more about what payments you have to make to your NZ Student Loan.
When you go overseas:
You need to let us know if you’re going to be overseas for 184 days (about 6 months) or more. The easiest way to do this, if you also want to apply for a repayment holiday, is to complete the form in your myIR Secure Online Services account.
Otherwise send us secure mail through your myIR account or call us on 0800377778 (+64 3 951 2020 from overseas).
You need to include:
You’ll become an overseas-based borrower if you’ll be overseas for 184 days or more. This means you’ll have different repayment obligations and your loan will no longer be interest-free. Interest applies to your student loan from the day after you leave New Zealand.
Find out more about interest and how it’s calculated.
There are certain situations where you may still qualify for an interest-free loan while you’re overseas.
In most cases you won’t qualify for an interest-free loan if you go overseas for 184 days (about 6 months) or more. However you may still qualify for your existing loan to remain interest-free if you meet the conditions for one of the following situations:
There are two additional circumstances where you may still qualify for your existing loan to remain interest-free:
You can apply for a repayment holiday if you’re going overseas for 6 months (184 days or more), which means you won’t have an overseas-based repayment obligation to pay for up to the first year (365 days) of being overseas. A repayment holiday is optional but you’ll need to apply if you want one.
The following conditions apply to repayment holiday applications:
If you don’t meet these conditions your application may be declined.
Please note:
You can apply for the repayment holiday through your myIR account by completing the form.
Otherwise send us secure mail through your myIR account or call us on 0800377 778 (+64 3 951 2020 from overseas).
Please note: Repayment holidays don’t stop interest on your loan, so it’s still a good idea to make voluntary repayments to keep on top of your loan.
When you return to New Zealand after being overseas for 184 days (about 6 months) or more, you must let us know so we can update your student loan details and contact information.
With the enactment of the Student Loan Scheme Amendment Act 2014, changes to student loans will affect both New Zealand-based and overseas-based borrowers.
Changes to the overseas-based borrower repayment regime include two new annual repayment obligations in addition to the current overseas-based repayment thresholds. Borrowers with a loan balance over $45,000 will also need to repay more per year towards their loan.
A borrower’s annual repayment obligation will be set at a fixed minimum amount, which will no longer decrease as the borrowers’ loan balance decreases.
Stronger measures for those who have defaulted on their overseas-based repayment obligation
We can now request an arrest warrant to stop borrowers from leaving New Zealand next time they visit, if they are significantly behind on their overseas-based repayment obligation. Similar provisions already exist under the Child Support Act 1991.
Find out about repayment obligations for overseas-based borrowers.
If there is anything else you would like to know about, please ask me a question using the below comment system and I will do my best to find the information you need.
Hi… I’m JJ Smith.
I’m the creator and editor of Moving to Australia and have been for 10 years! I know everything there is to know about New Zealanders moving their families and life to Australia. Either from first hand experiences and research or through the questions from visitors to this website… and I’m here to help!
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Ken
May 25, 2022 at 9:40 amHi there can u tell me what happens to your student loan if u go bankrupt ?
How long can student loan debt collectors chase u for ?
Thanks
JJ Smith
June 13, 2022 at 3:13 pmHi Ken,
Thank you for your comment and sorry for the large delay in replying.
If you have a student loan, it will be included in your bankruptcy debts and you won’t need to make any repayments. You can’t apply for a new student loan until your bankruptcy is discharged or annulled.
The IRD could chase you for your whole life.
Your student loan would not be interest free if you’re living in Australia for more than 6 months.
Sorry my advice wasn’t more positive.
Thanks
Karen
July 20, 2020 at 12:15 amHi JJ,
Do you know if there is a reciprocal payment system through government agencies for a New Zealand student loan for someone who is now based in Australia? I’m curious as to why there seems to be a reciprocal system for some social welfare payments but I cannot find any information on student loan repayments between Australia and New Zealand.
JJ Smith
July 20, 2020 at 11:26 pmHi Karen,
Thank you for your comment.
Unfortunately there is no reciprocal system for student loans between NZ and Australia.
NZ will only give you an interest free loan while you live in New Zealand and Australia will not give you a student loan unless you are a Australia Citizen.
You would have read the info on the student loan page, so you will know how to repay your loan and work out how much it will cost you wile living in Australia.
Please feel free to email me back any further questions you have.
Sam
June 14, 2020 at 11:03 amMy son is a NZ citizen, moved to Australia in 2014. He is still studying fr his Bachelors degree in Australia and working part time. After moving to Australia my son got into a relationship with an Australian Citizen and has two daughters born here in Australia (who are Australian citizens). My son is facing financial hardship and not in a position to pay off his NZ student loan which has ballooned to over $35K and incurring interest. He is not in a position to pay off his NZ Student loan and has no assets. What are his options and the pros and cons of options he has in his situation?
JJ Smith
June 17, 2020 at 1:09 amHi Sam,
Thanks for your comment.
I haven’t got any good advice for him apart from start paying off your student loan! His loan is going to keep gaining interest until it is paid off.
He needs to call the IRD! They will be able to talk him through his options and may be able to offer him some payment options. IRD phone for overseas based customers calling from Australia: 1800 559 653.
They may stop him leaving New Zealand next time he travel’s, so make sure he contacts them.
The loan isn’t going to disappear, only get worse.
However, he should setup an account with either XE or OFX so he isn’t charged fees on the money he transfers to NZ to pay the IRD. More info here: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Sorry I couldn’t be of more help.
Beth
May 25, 2020 at 8:18 pmIn terms of moving to Australia and coming back. Once i come move back to nz will i still earn intrest or will it go back to intrest free?
JJ Smith
May 25, 2020 at 10:55 pmHi Beth,
Thanks for your comment.
You loan will go back to interest free when you are NZ based for at least 152 of the 183 days. Read more – https://www.ird.govt.nz/student-loans/what-happens-to-my-student-loan-when-i-go-overseas.
If you are planning on going to Australia for up to 12 months then you can take a break from repaying your student loan for the 12 months your away. However, they will still charge you interest. More info – https://www.ird.govt.nz/student-loans/what-happens-to-my-student-loan-when-i-go-overseas/temporary-repayment-suspension-for-student-loans.
Please feel free to email me back any further questions you have.
Good luck with your move, when you can move.
Bill
April 2, 2019 at 2:37 amHi My daughter has moved to Australia, Brisbane with full time employment. She completed her 4 years at Massey last year. We are wanting to know how she can do this from Australia. Does NZ have an agreement with Australian Tax Office to repay the student loan?
JJ Smith
April 9, 2019 at 12:00 amHi Bill,
Thank you for your comment.
Unfortunately once your daughter moves to Australia her loan won’t be interest free.
Repayments will be based on her student loan balance and charge interest to the balance owing. Each year she’s away the IRD will work out her repayment amounts again. Her new repayment amounts will be available after 31 March.
I highly recommend she calls the IRD and discusses her situation with them.
She can use the IRD student loan repayment calculator to work out how much interest will be added to her loan and how long it’ll take to pay it off.
Wish I could have had a more positive answer for you.
Eric
November 22, 2018 at 9:34 amHi,
I have student loan in NZ, and will move to Australia next month.
I’m wondering if I need to pay back the whole amount at once to avoid any interest on the loan.
Is there any “discount” if the whole amount is repaid in one go?
JJ Smith
December 2, 2018 at 10:59 pmHi Eric,
Thank you for your comment.
I have updated the above student loan post with all the latest information, including a repayment calculator.
You will need to pay your loan off if you want to stay interest-free. But you do have 6 months before interest is added.
I can’t find any information on a discount for prompt/full payment, but I do recommend you call them, as they are there to help you out.
Good luck with your move.
Alex Vico
October 29, 2018 at 12:29 amHi JJ
I have a New Zealand student loan and have been living overseas for about 10 years now (currently residing in Australia).
I am both a New Zealand and Australian citizen (I was born in Australia). I am wondering if there are different laws regarding student loan repayment / interest charges if I am a dual citizen?
JJ Smith
October 29, 2018 at 1:30 amHi Alex,
Thank you for your comment.
I don’t know if there are different laws regarding citizenship.
I don’t think it makes a difference to repayments or interest though as no matter what you are a over-seas borrower.
Sorry I can’t be of more help. Please let me know if I wrong regarding the above.
Thanks,
JJ Smith
Sarah Smith
September 3, 2018 at 1:06 amIf I’m Australian born, but my child is born in NZ and I want to move back to Australia, is my child an Aussy or a Kiwi? Will my child be able to get a student loan in Australia for study at university?
JJ Smith
September 4, 2018 at 12:51 amHi Sarah,
Thank you for your comment.
Since your child in NZ born, they will have an NZ passport and will be an NZ citizen. So they will not be able to apply for an NZ loan at this stage.
However, as you are a Australia citizen you can apply for your child to become a Australian citizen too.
For Australian citizenship by descent eligibility you must have been born outside Australia and at least one of your parents must have been an Australian citizen when you were born.
Get your identity documents, evidence that one of your parents was an Australian citizen at the time of your birth and, if you are 18 years of age or over, good character documents.
Here is where to register your child born outside Australia as a citizen: https://www.homeaffairs.gov.au/trav/citi/curr. The fee for this application is AUD 230. The fee for the second and subsequent siblings applying at the same time is AUD 95 per applicant.
Please feel free to ask further questions.
Jordan
July 1, 2014 at 7:48 amWhat are the terms of having a current student loan in New Zealand and moving to Australia will i have to pay extra tax on top of it?
JJ Smith
July 1, 2014 at 7:49 amHi Jordon,
Thank you for your enquiry.
If you’re going overseas for 6 months or more your student loan won’t be interest free, which means you may end up paying more interest. However, you will not have to pay more tax.
For more information please read the information on the IRD website: http://www.ird.govt.nz/studentloans/overseas/.
Good luck with your move.