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  1. #1
    Wanderer
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    Default When is the free interest student loan?

    Its not gone right after the coalition talks?
    I just may take up the loan to do a course.

    Policies is a double sided blade - like life is.

    N.

  2. #2
    Wanderer
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    Default Re: When is the free interest student loan?

    Found it. I just pay a bit myself and then draw on the loan afterwards..

    New interest free student loan policy announced

    Minister Cullen announces changes to the student loan scheme that will take effect from 1 April 2006.

    The first of these changes means that no borrower living in New Zealand will pay interest on their loan. The second change provides an amnesty period on penalties for borrowers living overseas who are in arrears with their payments.

  3. #3
    Elite
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    Default Re: When is the free interest student loan?

    From a person (i.e. me) paying one back...

    It really isn't the interest that is too much of a problem (unless you have a really huge loan i.e. over $50 000 and you'd get interest reductions anyway). At some point you have to pay it back.

    Also be wary of policy change (I predict that the minimum repayment rate when you are working will be increased).

  4. #4
    Senior Member
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    Dec 2004
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    290

    Default Re: When is the free interest student loan?

    I work over summer so that I can afford to pay my fees for the year without a loan (some $7000 a year for Auckland Uni). This won't stop me getting a loan and avoiding paying it back so I gain interest on my own money. Makes financial sense and I'm not going to let the opportunity slip.

  5. #5
    Wanderer
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    Default Re: When is the free interest student loan?

    One just needs to be proactive I think. Perhaps if there is a change of govt this policy will be revoked. So one should save as if there is no such policy, and if the policy does end, go to IRD on the last day and make a lump sum deposit be it full payment or a partial payment.

    If this goes for 4yrs or 40yrs great. Funds will just accumulate interests while having a backup plan for when the policy gets canned.

    Yes if the payment rate increases, that's ok, cos it gets paid back and a higher rate just means u pay more back faster. Worst thing is not having a backup plan or to exploit the opportunity becos when the policy ends, you will be stung. If ones pays the min amount each time to retirement (then gets cleared by govt) be it how much or how less each payment term, these add up at the end of the day that may equal to 6x or more of the original loan you took.

  6. #6
    Senior Member
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    Default Re: When is the free interest student loan?

    its "cheap" money....

    this will fund nicely for a new car

  7. #7

    Default Re: When is the free interest student loan?

    Hey I had an idea. Although its too late for me, how about drawing down all you can borrow, then give it to family / relatives to reduce their mortgage, then charge them 5% interest (below market rates) for using it!

  8. #8
    Senior Member
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    Dec 2004
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    171

    Default Re: When is the free interest student loan?

    Hey I had an idea. Although its too late for me, how about drawing down all you can borrow, then give it to family / relatives to reduce their mortgage, then charge them 5% interest (below market rates) for using it!
    It dont work like that. Course fees are paid directly to your learning establishment.

    Dunno what the story is with student allowance, not sure how they will regulate this side of it. Course related costs ($1000 per year of learning) will not change apparantly.

    Labour offered a nice big colourful present for students to vote for them but all you will find inside is red tape and Bureaucratic bullsh*t.
    A friend will help you move.......a good friend will help you move a body

  9. #9
    Long Time Member drcspy's Avatar
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    Default Re: When is the free interest student loan?

    its "cheap" money....

    this will fund nicely for a new car


    dont see how you are gonna do this cause the loan is paid directly to the education provider ...........
    There are two sides to any question; MY side and the WRONG side (Winston Churchill)

  10. #10
    Senior Member Greven's Avatar
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    Default Re: When is the free interest student loan?

    Quote Originally Posted by drcspy
    its "cheap" money....

    this will fund nicely for a new car


    dont see how you are gonna do this cause the loan is paid directly to the education provider ...........
    Living costs & course related costs

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