How much can I borrow?
There are three parts to a student loan. You don't have to borrow all three parts.
Visit the StudyLink website to find out the current payment limits for course-related costs and living costs.
1. Compulsory fees
These pay all of your tuition fees. Fees are paid directly to the institution by StudyLink.
2. Course-related costs
A lump sum for things like stationery, textbooks, childcare, travel or computer equipment. This is paid directly to your bank account.
3. Living costs
You can borrow up to a set amount each week for living expenses, which is then direct credited to your bank account. If you receive a student allowance this will reduce the amount you can borrow.
The more you borrow, the more you have to pay back!
If you're aged 55 years or over you will only be eligible for the compulsory fees part of the student loan.
You won't be able to borrow for a student loan if you have a student loan default of $500 or more when you apply, and at least some part of that amount has been overdue for a year or more.
Student loan versus student allowance
The student allowance is a weekly payment for eligible students. Unlike a student loan, the allowance doesn’t have to be paid back.
If you receive the student allowance, the amount of student loan you can borrow for living costs goes down by the amount of student allowance you get after tax (not including the accommodation benefit payment).
StudyLink shows whether someone qualifies for a student allowance.
What other costs are there?
You need to pay an establishment fee every time you apply for a student loan from StudyLink, which is added to your loan. An annual administration fee will be charged on your loan if you have a balance of $20 or more with Inland Revenue at the end of the tax year, until you fully repay your loan.
If you live in New Zealand, your student loan is interest free. Find out more about student loans at the Inland Revenue website.
In most cases, if you live overseas for more than six months (184 days or more) you will be charged interest on your student loan. Find out more about student loans when travelling or living overseas at the Inland Revenue website.
Work out how long it will take to repay the loan and the difference voluntary repayments could make – try the student loan repayment calculator on the Inland Revenue website.