Student Loans

Clients with a Student Loan must make repayments to Inland Revenue when the income they receive exceeds a pre-determined level. This level is called the 'income threshold'.

A person must make repayments to Inland Revenue when their income exceeds $464.00 gross per week ($24,128 gross per year) as at 1 April 2026. Note non-taxable Extra help such as family tax credit and Accommodation Supplement do not count as income in this instance.

If the client's income is over this income threshold, the Ministry of Social Development can make the required deduction. However, this is only done if the client requests it.

If the client's portion of benefit is below the income threshold, there is no provision to make voluntary repayments through SWIFTT. The client can make voluntary payments direct to Inland Revenue at any time.

Note the following:

• Student Loan deductions can only be made from taxable benefits
• Student Loan deductions cannot be made if the client's benefit is below the income threshold
• when a client receives a married, civil union or de facto rate of benefit only the client's portion is taken into consideration when assessing Student Loan repayments
• when a client is receiving a reduced rate of payment due to other income, the Student Loan deduction is assessed on the net payment after income deduction