Student Loan Terms and Conditions

Act

Act means the Student Loan Scheme Act 2011.

Annual repayment threshold

Annual repayment threshold means the annual amount, as set out in the Schedule, a New Zealand based borrower may earn in a tax year before they have a repayment obligation. For salary or wage earners the amount you must repay is based on a pay period repayment threshold. For more information see www.ird.govt.nz/studentloans

Base interest*

Base interest is the base interest rate as defined in the Act. The current rate is as set out in the ‘Key details’ section. The current rate change in accordance with the Act on 1 April each year.

Course

Course means a training course that has been approved for Student Loan Scheme purposes by the Tertiary Education Commission and includes each programme and part of that training.

Course-related costs

Course-related costs means costs connected to your course that we have approved.

CPI process*

CPI process is the process by which the maximum living costs may from time to time be adjusted for movements in the New Zealand Consumers Price Index as published on www.stats.govt.nz

Crown

Crown means The Sovereign in right of New Zealand acting by and through the Chief Executive of Ministry of Social Development (MSD).

Due date*

Due date is the date that payment is required to be paid under the Act.

Education Provider

Education Provider means a university, Te Pukenga – the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries, wananga, college of education, or a registered private training establishment providing tertiary education.

EFTS

EFTS means Equivalent Full-Time Student. EFTS is a measure of the amount of study or the workload involved with a particular course. EFTS is used to describe if the course is either full-time or part-time. An annual 2 EFTS borrowing limit applies.

Fees

Fees means the amount you can borrow for the compulsory fees of your course.

Inland Revenue

Inland Revenue means the Commissioner of Inland Revenue as defined in the Tax Administration Act 1994.

Inland Revenue Number*

IRD number means your individual 8 or 9 digit tax code given to you by Inland Revenue

Late payment interest

Late payment interest means the amount charged for not making payments in full and on time, and is charged monthly at the rate set out in the Schedule.

Life-time limit

Life-time limit means the maximum amount of study for which you can receive a loan.

Living costs

Living costs means a weekly amount of loan paid out for your living costs while studying.

Loan

Loan means any or all of the following: the unpaid amount, interest, penalties, administration fees and loan advance (which includes the establishment fee).

Loan contract

Loan contract means any loan agreement or contract entered into between us under the Student Loan Scheme.

Loan entitlement advice

Loan entitlement advice means the confirming your loan, setting out the total amount which is borrowed under the loan contract, including course-related costs, fees and living costs. The loan entitlement advice also includes the details stated under clause 2.

Loan interest*

Loan interest means the interest charged to your loan as set out in clause 7.

Loan period

Loan period means the term of the loan contract and begins at the date you receive your first payment and ends on the date we make the final payment under the loan contract.

Maximum living costs*

Maximum living costs means the highest weekly amount of living costs you may be granted as living costs while studying. The amount is published from time to time on www.studylink.govt.nz

New Zealand based borrower

New Zealand based borrower means a borrower who is physically in New Zealand for 183 or more consecutive days. On application, some overseas borrowers may be treated as New Zealand based borrowers as set out in the Act.

Ordinarily resident*

Ordinarily resident means you consider New Zealand your home - you normally live here, and intend to stay here permanently.

Overseas based borrower

Overseas based borrower means a borrower who is physically overseas for 184 or more consecutive days. This is subject to exceptions as set out in the Act.

Overseas study requirements

Overseas study requirements means the requirements that you must meet to access the Student Loan Scheme in order to be eligible while studying overseas.

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Pay-period repayment threshold*

Pay-period repayment threshold means the annual repayment threshold broken down into your job’s pay periods, for example, fortnightly or weekly.

Performance requirements

Performance requirements means the course results you must achieve to be eligible for your loan.

Person

Person means an individual, company, corporation or state agency, or government department.

Repayment holiday*

Repayment holiday means a period during which overseas based borrowers do not need to make repayments. Base interest is still charged on your loan. The repayment holiday period is set out in the Act.

Repayment percentage

Repayment percentage means the percentage of your loan that you have to repay when repayments are due. Your repayment percentage is set out in the schedule.

Residency requirements

Residency requirements means the requirements for New Zealand citizenship or residency that you must meet to be eligible under the Student Loan Scheme.

Start date*

Start date means the date on which you receive your first payment under this contract.

Student Allowance

Student Allowance means a weekly allowance we pay you while you are studying.

Student Loan details*

Student loan details means those details listed in the ‘Key details’ section at the beginning of this contract.

Student Loan Scheme

Student Loan Scheme means the Crown's loan scheme for tertiary students which may be amended from time to time.

Study period*

Study period means the length of your course but excludes any holiday periods of 3 weeks or longer.

Us

We and us means the Crown acting through StudyLink, a service line of the Ministry of Social Development.

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