Overseas Student Loan Repayment Calculator

If you move overseas for more than 183 days, your loan becomes interest-bearing at ~3% and you must repay directly to IRD. The repayment obligation is 12% of your overseas income (in NZD equivalent), with the threshold varying by country.

Australia and UK are IRD category 1 countries — you repay 12% on EVERY dollar earned (threshold = $0). For all other countries, the $24,128 annual threshold applies — same as domestic borrowers — so you only repay 12% on income above that amount.

The overseas interest rate is approximately 3% per year, compounded on your outstanding balance. This is backdated to the day after you left New Zealand. NZ-based borrowers pay no interest on their student loans.

Non-repayment puts your loan into default with higher late-payment interest. IRD can assess your repayment obligation and take collection action. Your arrears may be collected through PAYE when you return, and you could face border restrictions under the Student Loan Scheme Act.

Through myIR (IRD's online portal) using credit or debit card, or via international bank transfer. Many borrowers set up automatic payments from their foreign bank to IRD. Keep your contact details and overseas address up to date in myIR.

Yes — voluntary extra payments reduce both principal and future interest. Because 3% compounds on your outstanding balance, every extra dollar accelerates your payoff. Use this calculator to see how many years faster you could be debt-free with additional payments.