16 December 2003 Media Statement

Income thresholds for student loan repayments and interest write-offs to rise

Income thresholds for student loan repayments and interest write-offs will rise from 1 April next year, Associate Education (Tertiary Education) Minister Steve Maharey and Associate Revenue Minister David Cunliffe announced today.

The income level at which borrowers must begin to repay their loans will rise from $15,964 to $16,172. The maximum income level for a full interest write-off for part-time or part-year students will rise from $25,909 to $26,140. The student loan repayment threshold is aligned with the domestic purposes benefit paid to people with two or more children.

"Borrowers whose income is below the repayment threshold will not be obliged to make repayments on their loans and a large portion of their interest will be written off.

“Full-time, full-year students will continue to receive a full interest write-off while they are studying, regardless of their income,” Mr Cunliffe and Mr Maharey said.

The changes were approved by Order in Council yesterday.

ENDS

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