You can pay your student loan in NZ through your employer’s payroll deductions, online banking, or by setting up a direct debit.
Now let’s take a closer look
Paying off student loans can be a daunting task, but it’s important to stay on top of payments to avoid accumulating interest and hefty penalties. In New Zealand, there are various methods to make payments towards a student loan.
One way to pay off a student loan is through an employer’s payroll deduction system. This option allows borrowers to have a portion of their pay deducted and put towards their loan. This can also help borrowers keep track of payments as they won’t have to manually transfer funds each month.
Another option is to make payments online through internet banking. Most banks in New Zealand offer this service and borrowers can easily log in to their accounts and make payments towards their student loan. Setting up automatic payments can also be an option to ensure consistent payments are made on time.
Lastly, borrowers can also set up a direct debit with the New Zealand Inland Revenue Department to make payments towards their student loan. This option allows borrowers to set the frequency and amount of payments and eliminates the need to manually transfer funds each month.
As per Study International, “New Zealand’s student loan system stands out from others due to the country’s major selling point: no upfront fees for tuition. Students who wish to pursue higher education do not need to worry about coming up with the tuition fees before embarking on their degree”.
| Payment Method | Pros | Cons |
|---|---|---|
| Payroll Deductions | Automatic payments, easier to keep track | May be less control over the payment amount |
| Internet Banking | Convenient to make payments online | May forget to make payments without setting up automatic payments |
| Direct Debit | Easy to set up payment schedule | Limited control over payment amount |
In the words of former President Barack Obama, “Higher education shouldn’t be a luxury. It’s an economic imperative that every family in America should be able to afford.” Similarly, it’s important for students in New Zealand to have access to a student loan system that allows them to have the education they want and need, while also providing clear payment options to pay off their loans in a timely manner.
Answer in video
The speaker in the video shared their experience of paying off their student loan from New Zealand while living overseas. They used the Inland Revenue website to plan out their payments, made significant payments every few months, and paid it off as soon as possible to avoid accruing interest. They also recommend using fee-free options for international transfers and emphasize the sense of relief and discipline that comes with paying off the loan.
You will most likely be intrigued
Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. Continue to make monthly payments even if you’ve satisfied future payments, and you’ll pay off your loan faster.