Salient

“We’re starving, but thank God student loans are interest free” – students

A student loan scheme bill passed last week will reduce the burden of debt for some borrowers and “simplifies the administration” of the scheme, claim Tertiary Education Minister Michael Cullen and Revenue Minister Peter Dunne.

In a release, the ministers said: “The changes bring the student loan scheme rules into line with the aims of interest-free loans, one of which is to reduce barriers to the return of skilled New Zealanders.”

The changes include:

• A ‘repayment holiday’ for up to three years for borrowers overseas. Borrowers will not have to make repayments but their loans will still attract interest.
• Extension of interest-free loans to full-time undergraduates studying overseas
• Interest-free loans for borrowers overseas working in certain areas of volunteer or charitable work
• A reduction of the late-payment penalty from 2% to 1.5% per month

Data-matching between Inland Revenue and the New Zealand Customs Service to determine whether a borrower is eligible for an interest-free loan, is based in New Zealand or overseas, and is resident or non-resident

Theses changes will take place on April 1.

3 Comments

1. musikbox

   26 Mar, 2007 at 4:40 pm

   why don’t you have a profile like everyone else? too tuff.

2. Brunswick

   26 Mar, 2007 at 6:02 pm

   Laura’s profile would make your computer explode.

3. musikbox

   27 Mar, 2007 at 2:12 pm

   I’d pay to see that.