This is a look at the government's new scheme allow student loan borrowers to repay their loans quicker. The Student Loan Scheme (Voluntary Repayments) Amendment Bill has been tabled in Parliament. The scheme gives borrowers a 10% credit for voluntary student loan repayments NZ$500 or over in a given tax year. For example, if a borrower makes NZ$500 worth of payments in the tax year to April 2010, the government will take a further 10% of that payment from the borrower's student loan account (in this case, NZ$50). So the total taken off the account will be NZ$550. The scheme is only for repayments made after April 1, 2009, so those who made more than NZ$500 in repayments in a given tax year before that date will receive nothing. For more, see here.
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