Repayment holiday
Repayment holiday for overseas-based borrowers
If you're an overseas-based borrower (away from New Zealand for 184 or more consecutive days) you may be entitled to a repayment holiday of up to three years.
While you're on a repayment holiday you don't have to make any compulsory repayments. However, interest will continue to be charged on your student loan - so it's a good idea to make voluntary repayments to help keep on top of your loan.
Find out if you're eligible for a repayment holiday
From 1 April 2007, if you become an overseas-based borrower you'll automatically be granted a repayment holiday when you leave New Zealand.
Already overseas on 1 April 2007?
Did you leave New Zealand:
- on or after 1 April 2006?
You are entitled to a repayment holiday of up to three years (this started on 1 April 2007).
- before 1 April 2006?
| If you ... | and you left New Zealand ... | then you're... |
|---|---|---|
| met all your student loan repayment requirements as at 1 April 2007 | entitled to a repayment holiday of up to three years (this started on 1 April 2007). | |
| did not meet all your student loan repayment requirements as at 1 April 2007 | between 1 April 2005 and 31 March 2006 | entitled to a repayment holiday of up to two years (this started on 1 April 2007). |
| between 1 April 2004 and 31 March 2005 | entitled to a repayment holiday of one year (this started on 1 April 2007). | |
| prior to 1 April 2004 | not entitled to a repayment holiday. |
Repayment holiday for borrowers who've completed the amnesty
If you applied for the student loan amnesty and your application was accepted, you'll be entitled to apply for a three-year repayment holiday by contacting us once you've met your amnesty repayment obligations.
Ending a repayment holiday
Voluntarily
You can choose to opt out of your repayment holiday at any point by contacting us. You'll then need to start meeting your overseas-based borrower repayment obligations - we'll send you a notice of assessment telling you how much you need to pay. Find out more about repayment obligations for overseas-based borrowers.
When you return to New Zealand
When you return to New Zealand and become a New Zealand-based borrower your repayment holiday ends.
Three year maximum
You're only entitled to one three year repayment holiday but you can choose to stop and re-start it at any point up to the total amount of your entitlement. It can also be taken in smaller timeframes each time you become an overseas-based borrower.
When your repayment holiday entitlement has been used (or you've stopped it), if you continue to be based overseas, you're required to start making repayments towards your loan based on the overseas-based borrower repayment obligation.
Example
When Jordan left New Zealand on 24 April 2008 his repayment holiday automatically started. On 24 April 2011, (the last day of Jordan's repayment holiday) Jordan is still overseas so we issue him an overseas-based notice of assessment telling Jordan what his repayment obligation is for the 2012 tax year. Jordan's repayments will be due in two instalments on 30 September 2011 and 31 March 2012.
To stop or restart your repayment holiday contact the Student Loan Team.
| Contact us | ||
|---|---|---|
| From NZ | Phone: 03 951 2020 | Fax: 03 951 2216 |
| From overseas | Phone: 64 3 951 2020 | Fax: 64 3 951 2216 |
| nonres@ird.govt.nz | ||
Find out more
Next steps
Date published: 02 Jun 2009
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