Hon David Cunliffe
Associate Minister of Revenue
Income thresholds for student loan repayments and interest write-offs to rise
Income thresholds for student loan repayments and interest write-offs will rise from 1 April next year, Associate Education (Tertiary Education) Minister Steve Maharey and Associate Revenue Minister David Cunliffe announced today.
The income level at which borrowers must begin to repay their loans will rise from $16,172 to $16,588. The maximum income level for a full interest write-off for part-time or part-year students will rise from $26,140 to $26,799. Both thresholds have been inflation-adjusted by 2.52% - the annual movement in the December CPI.
Borrowers whose income is below the repayment threshold will not be obliged to make repayments on their loans and a large portion of their interest will be written off.
"These adjustments have been made to ensure that the student loan repayment process is fair and reflects current economic conditions," David Cunliffe said. "Full-time, full-year students will continue to receive a full interest write-off while they are studying, regardless of their income."
"A third of all debt incurred since the student loan scheme began has been repaid or written off and that proportion is forecast to rise over the next ten years," Steve Maharey said.
The changes were approved by Order in Council today.
Contact: Daniel Lambert [Steve Maharey’s office], (04) 471 9154 or (021) 270 9115,e-mail: [email protected], www-beehive.govt.nz/maharey.