How repayments work
Your employer deducts student loan repayments through PAYE once your pay passes the threshold for that pay period ($464 a week, $928 a fortnight, $2,010.66 a month). Only the part of your income above the threshold is charged, at 12%. On a $75,000 salary that's $6,106.56 a year; a $28,000 balance clears in about 4 years 7 months if nothing changes.
Frequently asked questions
How much do I repay on my student loan?
12 cents for every dollar you earn over the repayment threshold of $24,128 a year ($464 a week). Earn $75,000 and you repay $6,106.56 a year — about $117 a week — automatically through PAYE.
Does my NZ student loan charge interest?
Not while you're living in New Zealand — loans are interest-free for NZ-based borrowers. If you move overseas for 6 months or more, interest starts and repayment rules change.
Why is the threshold frozen?
The government fixed the repayment threshold at $24,128 rather than adjusting it with inflation each year, so a slightly bigger share of borrowers' income is captured over time.
Can I make extra repayments?
Yes, any time, through myIR — because the loan is interest-free in NZ, extra repayments shorten the loan but don't save interest. Many people prefer to invest the difference instead; it's a judgement call, not a rule.
What if I have a second job too?
Student loan deductions on secondary income are 12% of every dollar — the threshold only applies to your main income. See the secondary tax calculator to model both together.
Rates checked against official sources on 1 November 2026: IRD repaying your student loan from salary or wages. See how we calculate for the full method and update log.