Student loan repayment bonus policy extended

Student loan borrowers will qualify for a voluntary repayment bonus whether they are based in New Zealand or overseas, Tertiary Education Minister Anne Tolley announced today.

Before the election, National said that borrowers making a voluntary repayment of $500 or more would get an extra 10 per cent bonus from the government.

Mrs Tolley said it had been decided to extend the scheme to those with student loans living overseas, not limit it to repayments made 10 years after a person graduates, and to allow the $500 repayment to be made in more than one transaction.

Voluntary repayments made after April 1 would qualify, and the first bonuses would be credited after the end of the 2009/10 tax year.

The scheme was designed so that all borrowers making a payment over and above their compulsory student loan repayments can receive the bonus, provided they make their payments when they are due.

"Shorter repayment times will mean young New Zealanders will be debt free earlier. This means more money in their pockets each week and more freedom to make major life decisions such as travel, starting a family or home ownership," Mrs Tolley said.

- NZPA