Select Committee on Education and Skills Minutes of Evidence


Extract from New Zealand student loans website

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.

EXAMPLE

  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 by 2007.

  If Sue doesn't make any voluntary repayments it would take her until 2036 to pay off her loan—and 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.



 
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Prepared 11 July 2002