The Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill passed its final stages under urgency in Parliament last night.  The legislation, which now awaits Royal assent, extends interest-free loans to students studying overseas full-time on formal exchange programmes, and to borrowers from countries in the Realm of New Zealand.

 

The formula for setting the interest rate has also been moved from the Student Loan Scheme (Interest Rates Formulas) Regulations 2006 to the Student Loan Scheme Act 1992.  The interest rate under the formula for the

2010-11 tax year will be 6.6%.

 

For more information see the media statement at:

http://www.taxpolicy.ird.govt.nz/