Overseas Student Loan Repayment Calculator

If you're overseas for 184 or more consecutive days, IRD stops basing your student loan repayments on your income. Instead you pay a fixed annual amount set by your loan balance — the same table applies no matter which country you live in. Your loan also becomes interest-bearing (currently 5.6% per year) once you're overseas-based, unlike NZ-based borrowers whose loans are interest-free.

IRD's fixed annual repayment table (due 30 September and 31 March) is: under $1,000 — pay the balance in full; $1,000-$15,000 — $1,500/year; $15,001-$30,000 — $3,000/year; $30,001-$45,000 — $4,500/year; $45,001-$60,000 — $6,000/year; over $60,000 — $7,500/year. This does not depend on your income or which country you live in.

The overseas borrower interest rate is 5.6% per year (effective 1 April 2026, up from 4.9% in the 2025-26 tax year), compounded on your outstanding balance. This is different from NZ-based borrowers, who pay no interest. Interest starts accruing once you have been overseas for 184 or more consecutive days, backdated to the day after you left New Zealand. Late payments attract a higher rate of 9.6% (7.6% if you arrange an instalment plan).

If you fail to meet your overseas repayment obligations, your loan goes into default and the late payment interest rate of 9.6% (higher than the standard 5.6%) applies, reducible to 7.6% with an arranged instalment plan. IRD may issue an assessment of your repayment obligation and can take collection action. When you return to New Zealand, the defaulted amount may be collected through PAYE deductions at a higher rate. You may also face restrictions at the border under the Student Loan Scheme Act.

You can make repayments through myIR (IRD's online portal) using a credit or debit card, or via an international bank transfer. Many overseas-based borrowers set up automatic payments through their foreign bank account to IRD's nominated bank account. You should also update your contact details and overseas address in myIR so IRD can communicate your repayment obligations each year.

Yes — making voluntary extra payments on top of your fixed repayment obligation can significantly reduce the time it takes to pay off your loan. Because interest accrues at 5.6% on your outstanding balance each year, every extra dollar you pay reduces both the principal and the future interest that would have accrued on that amount. This calculator shows you exactly how many years faster you could be debt-free with additional payments.

You can apply for a temporary repayment suspension (repayment holiday) of up to 365 days if you apply within 183 days of leaving New Zealand — interest still accrues on your balance during the holiday. Separately, IRD's temporary interest write-off scheme can apply in specific hardship circumstances; contact IRD directly to check eligibility.