Loan Accounts
Definition and use of a Student Loan Account
A Loan Account is the administrative mechanism used to record and manage borrowing by a student from the Student Loan Scheme. It holds all the borrowing transactions related to a particular period of study, usually a maximum of 52 weeks, including; the payment of tuition fees, course-related costs and living costs, as well as the establishment fee and any refunds from providers.
A Loan Account can be longer than 52 weeks if a student is studying an approved programme that is longer than 52 weeks.
Loan Accounts have not included interest from 1 April 2012. Any interest that may be charged is charged by Inland Revenue after the loan balance has been transferred to them for collection.
The Loan Account records the amounts transferred to Inland Revenue for collection. From 1 April 2012, this has occurred on a daily basis.
When students apply for a Student Loan, a Loan Account is established. They are not obliged to use their Student Loan. There is no charge or penalty if it is not used.
Overlapping periods of study
When there are overlapping periods of study, make sure the cumulative Course-Related Costs entitlement does not exceed the maximum of $1000.
A Loan Account generally covers a 52 week period (or longer for programmes longer than 52 weeks).
This is a cumulative assessment and therefore will require consideration of the total entitlement over the entire study period.
