Student Loan Repayment Bonuses Introduced
April 28, 2009 New Zealand Finance
A bill has been introduced into parliament, the Student Loan Scheme (Repayment Bonus) Amendment Bill, which will see a ten percent bonus to student loan repayments that surpass a certain threshold.
The new bill will see a 10% bonus to student loan repayments that are made voluntarily and amount to over $500 per year. These changes also come into effect for those that are based over-seas. The Bill is scheduled to be enacted by the end of 2009, although provisions have been made within it to account for payments that are made after the 1st of April 2009.
The 10% will count to any extent above $500, even to the full balance of the loan. This can either be utilized in the sense of 10/11 of the loan being paid and the last section being paid as a credit at the end of the year, or the loan can be paid in full and the remaining 10% can be credited back at the end of the year.