Student Loan Repayment
The 12% deduction on NZ income above the repayment threshold — interest-free while you stay in New Zealand.
NZ student loans are repaid through the pay system: once you earn above the annual repayment threshold, 12 cents of every dollar above it comes out alongside PAYE, shown by an SL tax code.
The defining feature: the loan is interest-free while you live in New Zealand. Move overseas for long enough and interest switches on — the reason returning Kiwis sometimes find their loan grew while they were away. Interest-free debt sits last on most repayment priority lists, behind anything charging real interest.
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