Lana Oconnell
If you have a student loan in New Zealand, you must start repaying it once you earn over a certain amount. This amount is currently $24,128 a year before tax ($464 a week before tax). You can check your loan balance online and make extra repayments if you want to pay it off faster. How much you pay depends on your income, and you can use a repayment calculator to see how long it will take to pay off your loan. If you move overseas, you may be charged interest, and you may need to continue making loan repayments.
| Characteristics | Values |
|---|---|
| Interest | Interest-free if you stay in New Zealand |
| Repayment start time | When earning over $24,128 a year before tax ($464 a week before tax) |
| Repayment amount | 12% of every dollar earned over the threshold |
| Repayment period | End-of-year or interim repayments |
| Repayment exemptions | Temporary suspension when overseas or for secondary jobs |
| Extra repayments | Possible to make extra repayments to pay off the loan faster |
| Repayment calculator | Available on the Inland Revenue website |
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What You'll Learn
Repayment thresholds
The amount you pay above this threshold is calculated at 12% of every dollar. So, for example, if you earn $600 a week before tax, your repayment will be $16.32. This is calculated as follows: $600 (weekly pay before tax) − $464 (weekly repayment threshold) = $136. $136 (income over the repayment threshold) × 12% (repayment rate) = $16.32.
You can use a student loan repayment calculator to see how long it will take to pay off your loan. You can also make extra repayments if you want to pay it off faster.
The repayment threshold does not apply to secondary jobs as it has already been taken into account with your main job. This means you repay 12% of every dollar you earn from any secondary jobs. For example, if you earn $200 a week before tax in a secondary job, your repayment will be $24.
If you are self-employed or earn income from sources other than salary or wages, you may need to make your own student loan repayments. If you have more than one source of income, you may be able to apply for a special deduction rate from Inland Revenue.
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Repayment rates
It is important to use the correct tax code when you are working, as this will ensure that your employer makes the correct deductions from your salary or wages. To indicate that you have a student loan, you must add 'SL' to your tax code. This tells your employer that they need to deduct 12% of your income over the repayment threshold to put towards your loan.
If you have multiple sources of income, you may be able to apply for a special deduction rate. This can be relevant if you have more than one job and earn less than the pay period repayment threshold from your main job. A special deduction rate allows the unused amount of the pay period threshold to be applied to your secondary income, reducing your overall repayments.
You can also make extra repayments on your loan if you wish to pay it off faster. The Inland Revenue website offers a student loan repayment calculator that can help you estimate how long it will take to repay your loan, including with extra repayments.
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Repayment suspensions
If you are moving overseas or have recently left New Zealand, you can apply for a temporary repayment suspension of up to 12 months. During this time, you will not need to make any repayments, but interest will be charged on your loan balance from the day after you leave the country. This interest will be added to your loan balance.
To apply for a temporary repayment suspension, you can either apply online via your student loan account in myIR or by calling the Inland Revenue Department. Once you have applied, you will receive a notice of assessment 183 days after leaving New Zealand, showing a balance of $0.00 owing for the 12-month suspension period. When the suspension ends, you will need to resume repaying your student loan. If you are still overseas, your repayments will be based on your loan balance, and will be due twice a year, on 30 September and 31 March.
It is important to note that the temporary repayment suspension only applies to your overseas-based student loan repayments. Any New Zealand-based repayments that you owe will still need to be paid and are not covered by the suspension.
If you are having difficulty repaying your student loan, there are other options available to help make things easier. You can apply to lower the deductions from your New Zealand salary or wages if you are in any of the following situations:
- You are studying full-time and earning under the annual repayment threshold.
- You have multiple employers, and your main income is under the annual threshold.
- Your salary and wage deductions are causing financial hardship.
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Repayment deductions
Repayments on your student loan in New Zealand depend on how much you earn and whether you are based in New Zealand or living overseas. If you earn over $24,128 before tax per year (or $464 a week before tax) you will need to start paying back your loan, even if you are still studying. You must add an 'SL' to your tax code to indicate that you have a student loan. This tells your employer that they need to deduct 12% of every dollar you earn over the threshold and put it towards your loan. For example, in the 2026 tax year, if you earn $600 a week before tax, your repayment will be $16.32.
If you have more than one job, you will need to pay 12% of every dollar you earn from your secondary job towards your student loan. This is because the repayment threshold only applies to your main job. However, if you earn less than the pay period repayment threshold from your main job, you can apply for a special deduction rate for your secondary job.
You can also make extra repayments to pay off your loan faster. If you think the deductions are too high and you have more than one source of income, you may be able to apply for a special deduction rate from Inland Revenue. If you are working a holiday job, you may be able to apply for a student loan repayment deduction exemption.
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Repayment calculators
The calculator allows you to estimate how much faster you can pay off your loan if your income changes or if you make additional payments. You can include extra repayments in your calculation, which can be helpful if you want to pay off your loan faster.
The amount you repay each year is 12% of every dollar you earn over the annual repayment threshold. For example, in the 2026 tax year, the annual repayment threshold is $24,128, or $464 per week before tax. So, if you earn $600 a week before tax, your repayment will be $16.32.
It's important to note that if you're living overseas with a student loan, you may be charged interest, depending on how long you're away for. In this case, you may need to continue making student loan repayments to Inland Revenue, unless you can get a temporary repayment suspension.
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Frequently asked questions
You need to start making repayments once you earn over $24,128 a year before tax ($464 a week before tax).
The amount you have to pay towards your student loan each year is 12% of every dollar you earn over the repayment threshold. For example, in the 2026 tax year, if you earn $600 a week before tax, your repayment will be $16.32.
If you earn a salary or wages, you'll need to make sure you're using the right tax code so that repayments can be deducted automatically from your pay. You must add an 'SL' to your tax code to indicate that you have a student loan.
You may need to keep making student loan repayments, and you may be charged interest. 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.
