Student Loan Scheme Amendment Act 2012
Student Loan Scheme Amendment Act 2012 introduces measures to increase repayment levels by borrowers and make the scheme fairer.
The Student Loan Scheme Amendment Bill was introduced into Parliament on 7 September 2011, receiving its first reading on 15 September 2011, its second reading on 27 March 2012 and the third reading on 3 April 2012. It received Royal assent on 11 April 2012.
The new legislation brings into effect a number of measures to increase repayment levels by borrowers and make the Student Loan Scheme fairer. They include:
- reducing the repayment holiday from three years to one year for borrowers who go overseas, and requiring them to apply for the repayment holiday and provide a contact person at the same time;
- removing the ability for New Zealand-based borrowers to offset losses against their income to reduce their liability for student loan purposes; and
- ensuring that Inland Revenue receives from StudyLink (the loan manager) details of a borrower's alternative contact person.
Clarification of the bill's commencement date was made by Supplementary Order Paper No. 15.
The new Act amends the Student Loan Scheme Act 2011.
All section references are to the Student Loan Scheme Act 2011 unless otherwise stated.