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Understanding your manual student loan statement

Here are some explanations of the terms you'll come across if you've received a manual student loan statement from us.

Financial period

This is the tax year in which a transaction occurred.

Tax years run from 1 April through to 31 March, and are referred to by the year in which they end (for example, the current tax year, which finishes 31 March 2018, is called the 2018 tax year). For student loans, this often means that the studying occurred the year before, as academic years reflect calendar years.

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Loan transfer

The principal amount borrowed from StudyLink, which is then transferred to Inland Revenue for collection. This is a debit amount.

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Interest transfer

Interest charged by StudyLink from the original date of borrowing, through to the date the initial loan balance was transferred to Inland Revenue. This interest is transferred to Inland Revenue with the principal amount, and may be eligible for an interest write off.

This is a debit amount.

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Interest rate

The interest rate for the tax year – this is set by Government on a yearly basis.

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Interest

For prior years, this is the amount of interest that was compounded (added to existing loan balance to earn interest) to your loan at the end of the tax year. This may include recalculated interest from prior years.

For the current year, this will show interest calculated up to the date of the statement (interest is calculated daily, and compounded annually).

This is a debit amount.

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Interest write off

Any interest write-off which has been applied to a student loan – interest write-offs are calculated daily and compounded annually, the same as interest.

This is a credit amount.

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Assessment

The amount set as payable for the tax year. For New Zealand based borrowers, this is based on income. For overseas based borrowers, this is based on the size of the loan. This amount does not add to the total loan balance; it is an amount of the loan that's set as payable for that tax year (due dates are different, based on a number of variables).

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Late payment interest / penalties

The amount of late payment interest (formerly called a penalty) which has been charged on an overdue assessment as at the date the statement is issued.

Late payment interest is charged monthly from the day after the due date of the assessment.

This is a debit amount.

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Repayment deductions

Amounts deducted by employers when a borrower is earning income in New Zealand. Depending on the dates, and the type of assessment, these may count towards any yearly assessment for that tax year.

This is a credit amount.

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Repayments

Payments made by the borrower. These will always count towards any yearly assessment amount in that tax year.

This is a credit amount.

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Credit transfers and adjustments

Credit transfers are amounts transferred into the student loan period. This could be from another tax type (such as an Income tax refund), or from an overpayment in another student loan period (in which case a matching debit transfer will show in the other period).

Adjustments are generally amounts that are shown to be “unpayable”.Tthese are caused by a re-calculation of past interest, and will be very minor amounts.

This is a credit amount.

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Refunds & debit transfers

A refund is an amount that overpaid an assessment, and which the borrower requested be refunded to them.

A debit transfer is an amount that has been transferred from that student loan period, either to another tax type (an overpayment of an assessment used to cover a debt elsewhere on a borrower’s account), or to a different student loan period (in which case a matching credit transfer will show in the other period).

This is a debit amount.

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Voluntary repayment bonus

Between the 2010 and 2013 tax years (1 April 2009, through to 31 March 2013), a Voluntary Repayment Bonus was introduced. This was a 10% bonus on any additional payments (over and above the assessment amount) of $500 or more (this was 10% of the additional payment).

Any bonus that the borrower was entitled to, and received, would show here.

This is a credit amount.

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Amnesty penalty & admin fees

An amnesty penalty is a penalty that was added as part of an amnesty on student loans, which was applied from the 2007 to 2009 tax years (1 April 2006 through to 31 March 2009). This amnesty was for borrowers who were non-resident on 31 March 2006, and had (or would have had) arrears as at 31 March 2008. This penalty cannot be remitted.

Admin fees refer to an annual administration fee charged by Inland Revenue from 1 April 2011 if a borrower has a total loan balance of $20 or more on 31 March and did not have an establishment fee charged. This fee is $40, and reflects the cost incurred by Inland Revenue to administer student loan accounts.

This is a debit amount.

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Change in loan balance

This is the amount that the overall loan balance has changed throughout that tax year. This will either be an increased amount (shown as a positive figure in black), or a decreased amount (shown as a negative figure in red with brackets).

This figure is calculated by adding any figures shown as debit amounts and then taking away any figures shown as credit amounts.

Adding this column together will result in the total loan balance.

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