Student Loan
New Zealand student loans are provided by StudyLink to fund tertiary education, covering tuition fees, course-related costs, and living expenses. For borrowers living in New Zealand, loans are completely interest-free — you only repay what you borrowed.
Repayments are automatically deducted via PAYE at 12% of every dollar earned above the annual repayment threshold of $24,128 (2025-26). For example, if you earn $50,000, your annual repayment would be 12% × ($50,000 − $24,128) = $3,104.64. Self-employed borrowers make repayments through their end-of-year tax return.
Borrowers living overseas are charged interest and must make direct repayments to IRD based on their loan balance, regardless of their income. You can make voluntary repayments at any time to pay off your loan faster — there is no penalty for early repayment.
Related Terms
PAYE
PAYE (Pay As You Earn) is the system that New Zealand employers use to deduct income tax from employees' wages and salaries.
IRD
Inland Revenue Department (IRD), commonly known as Inland Revenue or simply IRD, is the New Zealand government agency responsible for collecting taxes, distributing social support payments, and enforcing tax compliance.
Try the calculator
Use our free tool to see how student loan affects your tax.