New Zealand – The interest rate on student loans for the 2008-09 tax year has been set at 6.7%, down from 6.8%. The new rate was approved by Order in Council today. For more information see Media Statement 1 below.
A further Order in Council signed today adds four charitable organisations to the list of those whose volunteers may qualify for interest-free loans while working overseas for them, undertaking aid activities, for free or for a token payment. For more information see Media Statement 2 below.
MEDIA STATEMENT 1
Student loan interest rate set for 2008-09
The interest rate on student loans for the 2008-09 tax year has been set at 6.7%, down from 6.8%, Revenue Minister Peter Dunne announced today.
“The interest rate, for those borrowers who still have to pay interest on student loans, is based on a five-year average of the ten-year bond rate, plus a margin to cover administration costs,” Mr Dunne said.
The new rate was approved by Order in Council today.
MEDIA STATEMENT 2
List of charitable organisations for interest-free student loans extended
The government has named a further four charitable organisations whose volunteers may qualify for interest-free student loans while working for those organisations overseas, Revenue Minister Peter Dunne announced today.
The latest additions to the list are the Campus Crusade for Christ New Zealand, Hare Krishna Food for Life Inc, SIM New Zealand, and the Church of Jesus Christ of Latter Day Saints NZ Trust Board.
“Although borrowers are generally required to be present in New Zealand for six months to qualify for an interest-free loan, Inland Revenue may grant an exemption for certain borrowers who are overseas,” Mr Dunne said.
“Borrowers who may be exempted include people who are working in aid activities for free or for a token payment for a named charitable organisation.
“The provision recognises the special circumstances of these organisations, their employees and the contribution they make through activities that are not based on profit or remuneration.
“Borrowers working overseas for named charitable organisations will still have to apply to Inland Revenue to determine if they qualify for the interest write-off,” he said.
The changes were approved by Order in Council today and will apply from 1 April 2008.
Inland Revenue, New Zealand