New Zealand’s student loan scheme allows eligible students to borrow from the government to cover course fees, study costs, and living expenses while enrolled at an approved tertiary institution. Here’s everything you need to know before applying.
Because NZ student loans are interest-free while you live in NZ, they are one of the cheapest forms of borrowing available. Taking the living costs loan (even if you don't strictly need it) and investing the difference in a high-interest savings account was historically a viable strategy — but with mandatory repayments coming from your salary, most people prefer to borrow only what they need.
Who Is Eligible?
To receive a NZ student loan, you must:
- Be a New Zealand citizen, permanent resident, or certain other eligible visa holders
- Be studying at an approved New Zealand tertiary institution (university, wānanga, polytechnic/Te Pūkenga, or private training establishment)
- Be enrolled in an approved qualification (most certificate-level and above qualify)
- Be aged 18+ for the living costs component (course fees loan has no age restriction)
Citizenship/residency: Permanent residents must have lived in NZ for at least 3 years (this can vary — check StudyLink for current rules). Temporary visa holders are generally not eligible.
What the Loan Covers
Course Fees
StudyLink pays your tuition fees directly to the tertiary provider. You don’t see this money — it goes directly to the institution. Domestic fee caps apply (most New Zealand institutions charge government-set domestic fees for eligible students).
Course-Related Costs
A lump sum per year (approximately $1,000 in 2026 — check StudyLink for current amount) that can be used for course materials, books, equipment, and study-related technology.
Living Costs
A weekly payment drawn down into your bank account to cover rent, food, and everyday expenses while studying. This is the component most students take if they don’t have other income or support.
The maximum living costs rate is set by StudyLink and adjusted annually. As at 2026, the maximum weekly living costs is around $300–$330 per week (check studylink.govt.nz for the current amount).
How to Apply
- Set up your RealMe identity: You’ll need a RealMe account (realme.govt.nz) to access MyStudyLink online
- Apply via MyStudyLink: studylink.govt.nz — complete the online application form
- Provide documentation: StudyLink will ask for proof of enrolment, identity, and (for living costs) a bank account
- Eligibility decision: Typically 1–2 weeks for a decision
- Set up IRD number: Your student loan is registered with IRD, who manage repayments
Interest on Your Student Loan
The most important feature of NZ student loans:
- While living in NZ: Zero interest — your loan balance does not grow
- If you leave NZ: 3.5% annual interest applies from the point you become overseas-based (generally after 184+ days outside NZ per year)
This means your student loan is entirely free money while you live in NZ — you only repay the exact amount you borrowed.
For more detail, see Student Loan Interest Rates NZ.
How Repayment Works
You don’t start repaying while studying (unless you earn above the repayment threshold during term breaks or part-time work).
Once earning:
- 12 cents per $1 of income above the annual repayment threshold (~$22,828 in 2026)
- Deducted automatically through PAYE (from your employer’s payroll)
- If self-employed, paid directly to IRD with your tax return
Example: If you earn $60,000 per year, you repay approximately 12% of ($60,000 - $22,828) = 12% × $37,172 = ~$4,460 per year automatically from your salary.
For full detail, see Student Loan Repayment NZ.
Student Loan vs Student Allowance
These are two different things:
| Student Loan | Student Allowance | |
|---|---|---|
| What it is | Debt you repay | Grant (not repaid) |
| Means-tested? | No | Yes |
| Amount | Up to course fees + $1K + ~$300/week living costs | ~$230–$280/week (varies) |
| Who qualifies | Most eligible students | Students whose parents/partner income is below threshold |
Many students receive both — the allowance covers some living costs, and the living costs loan tops it up. See Student Allowance NZ.