Hon Steve Maharey
Associate Education (Tertiary Education)
Income threshold for student loan repayments and interest write-offs to rise
Income thresholds for student loan repayments and interest write-offs will rise again from next April, Revenue Minister Michael Cullen and Associate Education (Tertiary Education) Minister Steve Maharey announced today.
The income level at which borrowers must begin to repay their loans will rise from $15,496 to $15,964. The income level under which part-time or part-year borrowers may have interest on their loans fully written off will rise from $25,378 to $25,909.
"The changes are in line with regular adjustments to the domestic purposes benefit," the Ministers said. "The student loan repayment threshold is aligned with the domestic purposes benefit paid to people with two or more children. This is to encourage beneficiaries to take part in tertiary education, to improve their employment opportunities."
"The interest write-off threshold sets the income level at which part-time or part-year borrowers cease to receive a full interest write-off on their student loans. It is aligned with the amount of other income beneficiaries may receive before the domestic purposes benefit is fully abated."
"Full-time, full-year students will continue to receive a full interest write-off while they are studying, regardless of their income," the Ministers said.
The changes were approved by Order in Council today.
Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail: [email protected]