Zero Interest for Overseas Student Loan Borrowers

Sunday 26 January 2014, 1:43PM

By Andersen Accountants Limited


Did you know that some overseas based borrowers are able to be treated as if they were New Zealand based? This means that they get the benefit of no interest even though they live overseas. It can mean savings of tens of thousands of dollars.

If any of the following situations applies, the student loan borrower may be eligible to be treated as being New Zealand based even though they live overseas:

  • They are working overseas for the New Zealand government.
  • They are working overseas as a volunteer, or for token payment, for a charity.
  • The reason why the borrower is overseas is because of an unexpected delay or an unplanned personal absence.
  • They have to be overseas because of their employment or occupation.
  • The borrower is overseas because they accompanied their spouse, civil union partner, or de facto partner overseas.
  • The borrower is studying overseas.
  • They are living in Niue, the Cook Islands, Tokelau, or the Ross Dependency.

For more information please visit our blog post.