- A fixed amount is payable to the IRD each year. The maximum fixed amount is $5,000 per year. Generally, this is payable in two instalments, but if you did not pay your 30 September instalment the full amount needs to be paid before 31 March.
- You can pay more than the fixed amount. If your debt is large, interest will cause it to increase by more than the fixed amount, meaning that your debt will continue to grow unless you pay more or become bankrupt.
- The fixed amount does not reduce until your debt is paid off in full.
- If you do not pay the fixed amount, it becomes overdue arrears and penalty interest is charged.
- If you do have any overdue arrears, these are payable in addition to the fixed amount.
- If you have overdue arrears the IRD will pursue you, either now or in the future. The arrears need to be dealt with. There are various resolution options, but the key is to start the process.
- If you took out a student loan debt, live overseas, but do not receive correspondence from the IRD, this does not mean that things are good. You may have substantial arrears that you do not know about.
- There is no statute of limitations on student loan debts.
- If you have any doubt about your situation we can help, or you can contact the IRD student loan team directly at obbteam@ird.govt.nz
- We offer fixed rate advice and resolution assistance. If you contact us, we will respond within a few hours and can provide advice on your options within 2-3 working days. Once we have provided advice we are available for reasonable follow up discussions and questions at no additional cost. Please contact Kristina for further information: kristina@studentloan.org.nz