Hon Dr Michael Cullen
Minister for Tertiary Education
Hon Peter Dunne
Minister of Revenue
Student loan repayment threshold to rise
The income threshold at which students must begin repaying their loans will rise at 1 April next year from $16,588 to $17,160, Tertiary Education Minister Michael Cullen and Revenue Minister Peter Dunne announced today.
"And, thanks to the interest free student loan policy legislated for last week, repayments from borrowers living in New Zealand will go entirely toward paying off the principal – not to paying interest.
"That will save them thousands of dollars in many cases, and knock years off their repayment times," the Ministers said.
The new threshold is based on annual movement in the September Consumer Price Index of 3.36 per cent.
The change was approved by Order in Council today.
Contact: Patricia Herbert [press secretary, Dr Cullen] 04 471 9412 or 021 270 9013 [email protected]