Compare the best ways
to transfer money overseas

Compare the best ways
to transfer money overseas

How to pay off a New Zealand student debt when you are overseas

2018-07-14 15:53:52

Student debt is something that can follow you for life and the cost of borrowing money doesn't have to be a burden even if you are planning on moving away from the country. Borrowing money to get through school only to find a job in a new location can cause a bit of stress.New Zealand student loan
New Zealand citizens can get access to a loan if they are registered for an approved educational course. New Zealand-based borrowers have their interest written off by the Inland Revenue Department. If a New Zealand borrower needs to borrow for a program that is taking place overseas, interest can be charged as high as 5%. This is something that's important to consider if you're planning on making a transfer part way through your education. 
How to pay New Zealand student loan even when you're out of the country. 
When you are based abroad you still need to pay back a certain amount of your student loan each year. Paying down your debt much faster can often help you to incur less of an interest payment. To determine how much you still owe and how much you need to pay each year, going to the MyIR secure online services account is one of the best first steps to take. 
If you are unable to pay back your loan you may start to incur an interest rate that can add up over time. Compounding interest can often see your loan grow or even have you face extra penalties. A small number of borrowers that have refused to pay their loans over years have even been arrested when they returned to the country. 
Paying down your student loan to a financial institution or services like CurrenciesDirect, OFX, HiFX or others (feel free to compare their quotes at wirecompare.com) is as easy as delivering your IRD number and the total amount that you wish to pay. Make sure to pay your loans down on time to avoid extra interest!