Student Loan repayments
Clients getting a Veterans Pension with a Student Loan debt must use a tax code with the Student Loan ('SL') repayment code. This will ensure that Student Loan repayments are deducted every pay period if required.
A Student Loan repayment is required when:
- the client's gross weekly payment of Veterans Pension is over the Student Loan repayment threshold or
- the client is on secondary tax code, regardless of the client's rate of payment
For more information see:
If the client's Veterans Pension is over the Student Loan repayment threshold, the Student Loan repayment will automatically be deducted from their fortnightly payment.
Deductions are calculated weekly but made fortnightly.
If the client's Veterans Pension is below the Student Loan repayment threshold, no Student Loan repayment will be made from the client's payment, unless the client is on a secondary tax code.
Clients can make voluntary payments directly to Inland Revenue at any time.
For more information on Student Loans see:
- Students Student Loan
