Establishment and Administration Fee

Student Loan borrowers are expected to make a contribution toward the administration cost of their loans.

For study starting on or after 1 January 2011, all loan accounts established incur a $60 Establishment Fee.

The fee will be added to the principal balance of the account when the account is activated (by fees being paid to the student's education provider or course-related costs or living costs being paid to the student's nominated bank account).

The Establishment Fee is charged once for each loan account used. If the student finishes the year without having used the account there is no charge.

The Establishment Fee is repayable under the same terms and conditions as the rest of the Student Loan.

Note for study commencing prior to 1 January 2011 an Administration Fee of $50 was charged.

A $40 Administration Fee is charged by Inland Revenue on outstanding loan balances for each tax year.

No administration fee may be charged to a borrower for a tax year if that borrower was charged an Establishment Fee in that tax year.

The Administration Fee was first charged for the 2011-2012 tax year.