New Zealand Student Loan Repayment Calculator 2024-25
Calculate your NZ student loan repayment amount, years to repay, and total paid — for both NZ-based borrowers (0% interest) and overseas borrowers.
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How to use this calculator
- 1
Enter your current student loan balance — find this at StudyLink or IRD myIR.
- 2
Enter your annual income before tax — repayments are calculated on income above $22,828/year.
- 3
The standard repayment rate is 12 cents per dollar above the threshold (12%).
- 4
If you've moved overseas for more than 6 months, toggle to "Overseas borrower" — an 8.9% annual interest rate applies.
- 5
You can also make voluntary repayments of any amount at any time to reduce your balance faster.
Frequently asked questions
Is there interest on NZ student loans?
New Zealand-based borrowers pay zero interest on their student loans — one of the most generous arrangements in the world. The loan balance only changes through compulsory and voluntary repayments, and there is no inflation indexation equivalent. However, if you move overseas for more than 183 days, interest begins accruing at a rate set by IRD — currently 8.9% per year. This is a key financial consideration for New Zealanders considering working abroad, as the loan can grow substantially while overseas without sufficient repayments.
When do NZ student loan repayments start?
Compulsory repayment deductions begin once your income exceeds the repayment threshold, which is $22,828 per year ($439 per week) in 2024/25. For salary and wage earners, the deduction is made automatically by your employer through the PAYE system — at a rate of 12 cents per dollar above the threshold. For other income (such as business income or investment income), repayments are calculated and made through your end-of-year tax assessment. You can also make voluntary repayments directly to IRD at any time.
What happens to my student loan if I move overseas?
If you are away from New Zealand for more than 183 days in a 12-month period, you become an overseas-based borrower and interest charges apply at 8.9% per year. You must continue making repayments based on your worldwide income above the threshold — the same 12% rate applies, but you must calculate and pay this yourself (it is not automatically deducted overseas). IRD requires you to notify them if you leave New Zealand. For Australians who move to NZ or vice versa, there are special repayment arrangements due to the close relationship between the two countries' tax systems.
Can I repay my NZ student loan faster?
Yes. Voluntary repayments can be made at any time directly to IRD via online banking. Since NZ-based borrowers pay no interest, there is no financial urgency to repay faster beyond simplifying your finances. However, clearing the debt sooner increases your take-home pay permanently. If you are an overseas borrower paying 8.9% interest, voluntary repayments are highly valuable — prioritise reducing the interest-bearing balance as quickly as possible. Some employers offer student loan repayment assistance as an employee benefit.
New Zealand Student Loan Calculator 2024-25 — Repayment & Timeline
How NZ student loan repayments work
New Zealand's student loan scheme, administered by StudyLink and IRD, provides income-contingent loans for tuition fees, student allowances, and course-related costs. A defining feature of the NZ system is that borrowers living in New Zealand pay zero percent interest on their loans — the balance only reduces through repayments and never grows unless you move overseas. Compulsory repayments are automatically deducted from salary and wages through PAYE once income exceeds the repayment threshold ($22,828 in 2024/25), at a rate of 12 cents per dollar above the threshold. This makes the NZ student loan system more like a graduate tax than a traditional loan for domestic borrowers.
Managing student loan debt as an overseas New Zealander
Many New Zealanders work in Australia, the UK, or other countries at some point in their careers — and this triggers interest charges on their student loans. At 8.9% per year, a $30,000 student loan balance accrues $2,670 in interest in the first year alone. Without sufficient repayments, the balance can grow rather than shrink. IRD requires overseas borrowers to repay based on worldwide income, with instalments typically paid twice a year. If repayments do not cover the interest, the loan grows. Returning to New Zealand stops the interest immediately. For those planning extended periods abroad, making voluntary repayments before leaving — or making regular overpayments while overseas — is strongly advisable to prevent the debt from ballooning.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →