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> Our Publications > New Zealand Outlook > 2003 > July
You may get a
student loan CITIZENS and permanent
residents of New Zealand can obtain a special loan from
the Government to assist them while taking tertiary
studies.
The loan plus interest is repayable to the Government
with 10 per cent of your income above an annual figure of
$15,964.
The loan can be used to help pay your tuition fees and
towards general living costs.
If you're studying at a tertiary institution such as a
university or polytechnic you can borrow as much as you
need for your fees. If you're studying at a private
training establishment, you can borrow up to $6,500 per
loan account. Your fees are paid directly to your
education provider.
You can borrow up to $1000 per loan account for
course-related costs. You don't have to claim all your
costs at once, but you must get your claim in before your
course finishes.
You can borrow up to $150 a week for living costs while
you're studying or on study breaks of three weeks or
less, such as mid-semester breaks. If your break is over
three weeks, you may be able to get the Unemployment
Benefit Student Hardship instead.
You choose how much you want to borrow. If you don't need
$150 a week you can ask for less. But you need to know
that if you don't borrow the full $150 a week (and you
qualify for it) you'll lose the balance and won't be able
to borrow it later on.
You'll pay interest on all the money you borrow, but you
may qualify for an interest write-off from Inland Revenue
while you're studying.
The interest rate is now 7 per cent pa. It is made up of
two parts.
* Base interest rate - this is how much it costs the
Government to borrow for the Student Loan. It is now 4.2
per cent pa.
* Interest adjustment rate - this depends on the consumer
price index (cost of living) from the last year. It can
go up or down depending on inflation. It is now 2.8 per
cent pa.
Interest rates are reviewed on 1 April each year.
Full interest write-offs
You qualify for a full interest write-off if you are
* a full-time full-year student or
* a part-time or part-year student earning less than
$25,909 a year before tax.
You'll get a base interest write-off if your income id
$15,964 a year or less before tax. The amount that will
be written off will be calculated from the information on
your personal tax return.
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