Lana Oconnell
If you have a student loan in New Zealand, you will need to make repayments on it, and the amount you pay will depend on your income and whether you are based in New Zealand or living overseas. You can make extra repayments to your student loan if you want to pay it off faster, and there are a few options for how to do so. You can set up automatic payments at your bank, make a one-off payment, or set up regular payments using internet or telephone banking. If you are living overseas, you will need to make minimum repayments on your student loan or apply for a temporary repayment suspension.
| Characteristics | Values |
|---|---|
| How to pay | Set up automatic payments at your bank, make a one-off payment, or set up regular payments using internet or telephone banking |
| Who should pay | Anyone who has borrowed a student loan has to pay it back |
| How much to pay | Depends on how much you earn, whether you are based in New Zealand or living overseas, and whether you earn a salary or wages, or are self-employed or have other types of income |
| Penalties | If you live overseas, you will need to make minimum repayments or apply for a temporary repayment suspension. If you miss the payment deadline, you may be charged penalties or interest |
| Payment deadlines | If you are living overseas, payments are generally due by 30 September and 31 March |
| Payment methods | Direct debit payments (if you live in Australia, the United Kingdom, Europe, Canada or the United States), telegraphic transfer |
| Extra payments | You can make extra repayments if you want to pay off your loan faster |
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What You'll Learn
How to make extra repayments
You can make extra repayments to your student loan to pay it off faster. There are a few ways to do this, including:
One-off payments
You can make a one-off payment by checking out the different ways to make a payment.
Through your employer
Your employer can make extra repayments from your income, on top of your standard student loan deductions. You can also ask your employer to make extra repayments when you earn less than the student loan repayment threshold.
Direct debit
If you live in Australia, the United Kingdom, Europe, Canada, or the United States, you can set up direct debit payments in your myIR account.
Automatic payments
You can set up automatic payments at your bank. To do this, you need to download and print the 'Authority Form for Debt Repayments' form and take it to your bank. Your bank may charge you for this service.
Repayment calculator
You can use the repayment calculator to check how long it will take to pay off your loan and how extra payments will affect this.
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Repaying from overseas
If you are living overseas, you will still need to make minimum repayments on your student loan. The amount you pay depends on how much you earn, and the length of time you are out of New Zealand for can affect how much interest is applied to your loan and when repayments are due. You can use the student loan repayment calculator to see how long it will take to pay off your loan, and you can compare this to how long it would take if you made extra payments.
You will receive an assessment notice each year that tells you the minimum payment you need to make. Payments are generally due by 30 September and 31 March, and the amount you initially need to pay depends on your loan balance when you first become overseas-based.
If you live in Australia, the UK, Europe, Canada, or the US, you can set up direct debit payments in your myIR account. If you are using a money transfer provider, it is your responsibility to ensure that the payment reaches the IRD by the due date, as penalties or interest may be charged if it is late. You can also get someone to act on your behalf in New Zealand to make regular payments.
If you are unable to make a payment, you can apply for a temporary repayment suspension.
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Payment methods
The payment methods for your student loan depend on whether you are based in New Zealand or overseas. Repayments also depend on how much you earn. You can check the IR website for information about deductions and exemption rates, and what tax codes to use.
If you are based in New Zealand, you can make a one-off payment or set up regular payments using internet or telephone banking. You will need the account number: 03-0049-0006243-025. If your bank only needs a 2-digit suffix, use 25 instead of 025. Once you enter the account number, your bank may match it to the account name. If not, you can use the account name 'Work and Income Debt Management'. In the reference field, you need to put the letter 'D' followed by your 9-digit client number. You can also set up automatic payments at your bank.
If you are based overseas, you will need to make minimum repayments on your student loan or apply for a temporary repayment suspension. You can set up direct debit payments in your myIR account if you are based in Australia, the United Kingdom, Europe, Canada, or the United States. You can also get someone to act on your behalf in New Zealand.
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How much to pay
The amount you pay towards your student loan depends on your income and whether you are based in New Zealand or overseas. If you are on a salary or wages, or are self-employed, your loan repayment will be automatically deducted from your income. You can also make extra repayments to your student loan if you wish to pay it off faster.
If you are based in New Zealand, you can make a one-off payment or set up regular payments using internet or telephone banking. You will need the account number 03-0049-0006243-025. If your bank only needs a 2-digit suffix, use 25 instead of 025. Once you enter the account number, your bank may match it to the account name. If your bank doesn't match it, you can use the account name 'Work and Income Debt Management'. In the reference field, you need to put the letter 'D' followed by your 9-digit client number.
You can also set up automatic payments at your bank. To do so, you need to download and print the 'Authority Form for Debt Repayments' form and take it to your bank. Your bank may charge you for this service.
If you are based overseas, you will need to make minimum repayments on your student loan or apply for a temporary repayment suspension. You can set up direct debit payments in your myIR account if you live in Australia, the United Kingdom, Europe, Canada, or the United States. You can also get someone to act on your behalf in New Zealand. The Inland Revenue Department (IRD) will send you an assessment notice each year that tells you the minimum payments you need to make. Your payments are generally due by 30 September and 31 March. The amount you initially need to pay by each due date depends on your loan balance when you first become overseas-based, which is the day after you leave New Zealand. Your repayments are based on your total loan balance on 31 March each year you are overseas-based.
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What happens if you miss a payment
If you miss a payment on your student loan, you may be charged late payment interest. The rate of interest depends on whether you are in New Zealand or overseas. If you are overseas, the length of time you are out of the country can affect how much interest is applied to your loan. You will need to pay off the outstanding amount before you can borrow more.
If you are having difficulty repaying your student loan, you can apply to lower the deductions from your New Zealand salary or wages. You can do this if you are studying full time and earning under the annual repayment threshold, if you have more than one employer and your main income is under the threshold, or if your salary and wage deductions are putting you into hardship.
If you are based overseas, you can apply for a temporary repayment suspension. You can also set up regular weekly or monthly payments, which can make it easier to stay on track. If you live in Australia, the United Kingdom, Europe, Canada, or the United States, you can set up direct debit payments in your myIR account.
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Frequently asked questions
You can make a one-off payment or set up regular payments using internet or telephone banking. You can also set up automatic payments at your bank.
If you live in Australia, the United Kingdom, Europe, Canada or the United States, you can set up direct debit payments in your myIR account. If you're based elsewhere, you'll need to make minimum repayments or apply for a temporary repayment suspension.
Yes, you can make extra repayments to your student loan. You can either ask your employer to make extra repayments or make a one-off payment.
