Student Loan stress

A Student Loan is an investment in your future. Here is some information that might put your mind at ease about the debt you are taking on.

New Zealand is investing in your education

While your Student Loan may seem large, you are not paying the full cost of your education by yourself. The government subsidises the tuition fees of domestic students. In fact, the government is paying more than you are each year.

Gaining transferable skills

Some people end up getting work outside their field of study. But even so, your degree can help you get a good job because the skills you learn along the way are in demand. See the Employment skills survey.

Graduate earnings

The Ministry of Education did a report in 2014 on young graduates’ earnings. Here are some of the findings:

  • Bachelor’s Degree: 5 years after finishing study, median earnings—46% higher than national average.
  • Earnings remain consistently higher for those with higher qualifications (based on data for first 7 years after study).
  • More than half who complete at bachelors or above earn above the national median earnings in the 1st year out of study.
  • Postgraduate qualifications continue to command high earnings (over half earn twice the national median 5 years out of study).

Paying off your Student Loan

If you get work in New Zealand, Student Loan deductions will be made automatically by your employer before you get your pay—so you don’t have to think about it and you can always pay extra if you want to pay it off faster.

It's interest-free

For those who stay and work in New Zealand. This means that the value of your Loan decreases over time, even without payments as the dollar tends to devalue over time with interest.

It takes on average 6 years to pay off your Student Loan if you stay in New Zealand and work, (based on information in the 2014 Student Loan annual report).

Calculate your repayments

Use the Student Loan repayment calculator to estimate your repayments and find out how long it will take you to pay off your loan, and show the benefits of making extra payments.