Student Loan Guide — Borrowing, Repayment, and Interest in NZ
the New Zealand Student Loan scheme. The guide covers the borrowing entitlements (the tuition fees, the course costs, the living costs), the repayment rules (the 12% of income above the repayment threshold), the interest-free status for the NZ-based borrowers, and the overseas-based borrower obligations.
Student Loan Borrowing
The New Zealand Student Loan provides the funding for the tertiary education. The borrowing components include: (a) the compulsory fees — the tuition fees paid directly to the education provider, (b) the course-related costs — up to $1,000 per year for the books, the equipment, and the materials, and (c) the living costs — up to $240.66 per week (for the 2025-26 year) for the full-time students. The interest-free status applies while the borrower is residing in New Zealand. The loan is administered by the StudyLink division of the Ministry of Social Development.
Repayment Rules
The student loan repayments are collected through the PAYE system at the rate of 12% of the income above the repayment threshold of $22,828 per year ($438 per week, $1,902 per month for the 2025-26 year). The self-employed borrowers repay through the provisional tax at the same 12% rate. The overseas-based borrowers must make the mandatory repayments calculated on the loan balance at the rate of 2% to 6% depending on the loan balance and the country of residence. The interest on the student loan for the overseas-based borrowers is applied to the loan balance.