Extract from New Zealand student loans
Not sure how much to pay off?
Inland Revenue has a Student Loan calculator
to help you work out how much interest you'll save by making extra
repayments. Just call 0800 37 77 78 or visit the website.
Heres an example of how making voluntary repayments
can really save you money.
Sue's Student Loan balance in April 2001 is
$20,000 and her estimated income for the year is $30,000.
If Sue makes a voluntary repayment of $50 a
week above her annual repayment obligation she will be debt-free
If Sue doesn't make any voluntary repayments
it would take her until 2036 to pay off her loanand she
would pay $28,624 more in interest.
This graph shows the difference the extra repayments
can make to the amount of interest Sue has to pay.
You can find out for yourself how making voluntary
repayments can really help save you money by checking out Inland
Revenue's online calculator.