New Zealand’s student-loan system has two very different halves. StudyLink handles the borrowing while you study, and Inland Revenue handles repayments once your income is over the threshold. That split is useful, but it also makes the numbers easy to mix up. The 2026 figures that matter are the NZ$333.48 weekly living-costs cap, the NZ$1,000 course-related-costs cap, the NZ$60 loan establishment fee, and the IRD rule that repayments are 12 percent of income above NZ$24,128 for the 2027 tax year, which runs from 1 April 2026 to 31 March 2027.
What the loan can cover
A New Zealand student loan can have up to three parts. The first is compulsory course fees, paid to the education provider. The second is course-related costs, money for study materials such as books, stationery, computer items and travel linked to the course. The third is living costs, a weekly payment for day-to-day expenses while studying.
StudyLink says full-time students can borrow up to NZ$1,000 in course-related costs per student-loan account, usually across a 52-week period. You do not have to draw the full NZ$1,000, and you can claim it in pieces rather than taking it all at the start. The same logic applies to living costs: the 2026 maximum is NZ$333.48 a week, but the sensible number is the gap you actually need to fill after work income, savings, family help and any Student Allowance.
There is also a one-off establishment fee of NZ$60. StudyLink adds it to the loan balance after loan payments start, so it is not a cash bill on day one, but it is still borrowed money that has to be repaid later.
Living costs and Student Allowance interact
Living costs are not the same as a Student Allowance. Living costs are borrowed through the student loan and must be repaid. A Student Allowance is a weekly payment that does not have to be repaid if you meet the rules. The two can overlap only up to the living-costs maximum.
For 2026, StudyLink’s living-costs page sets the maximum at NZ$333.48 a week. If a student receives a Student Allowance of NZ$200 a week, the most living costs they can also receive is NZ$133.48, because the combined support cannot exceed NZ$333.48. If the Student Allowance is above the living-costs cap, living costs stop. That order matters for budgeting because a delayed allowance decision can reduce the loan living-costs amount later, and back payments of allowance may be used first to repay living costs already borrowed.
The budget 50/30/20 calculator is a useful way to separate essential rent and food from flexible spending before choosing a weekly borrowing amount. For part-time work beside study, the hourly to salary calculator converts an hourly job into a yearly gross figure, and the New Zealand salary calculator shows the PAYE, ACC and student-loan effect once earnings are high enough.
The repayment rule in 2026/27
Student-loan repayments do not start because you owe a balance. They start because your income is above the repayment threshold. Inland Revenue lists the annual student-loan repayment threshold as NZ$24,128 for the 2027 tax year, 1 April 2026 to 31 March 2027. The repayment is 12 percent of each dollar above that threshold.
The formula is:
Repayment = (annual income minus NZ$24,128) multiplied by 12 percent
On NZ$50,000 of income, the amount above the threshold is NZ$25,872. The yearly student-loan repayment is NZ$3,104.64, or about NZ$59.70 a week before rounding in payroll. On NZ$70,000, the amount above the threshold is NZ$45,872 and the yearly repayment is NZ$5,504.64. Those repayments come on top of PAYE income tax, the ACC earners’ levy and any KiwiSaver deduction.
| Annual income | Income above NZ$24,128 | Student-loan repayment |
|---|---|---|
| NZ$30,000 | NZ$5,872 | NZ$704.64 |
| NZ$50,000 | NZ$25,872 | NZ$3,104.64 |
| NZ$70,000 | NZ$45,872 | NZ$5,504.64 |
| NZ$100,000 | NZ$75,872 | NZ$9,104.64 |
That is why the repayment line feels large once a graduate is earning full-time wages. It is not interest in the normal sense for borrowers living in New Zealand. It is a compulsory repayment rate tied to current income. A pay rise still leaves you better off, but 12 cents of each extra dollar above the threshold goes to the loan until the balance is cleared.
A worked borrowing year
Take a first-year student who borrows course fees separately, claims NZ$600 of course-related costs, and draws NZ$220 a week of living costs for 32 weeks. The living-costs borrowing is NZ$7,040. Add NZ$600 of course-related costs and the NZ$60 establishment fee, and the non-fee balance added during the year is NZ$7,700. If the student instead borrowed the full NZ$333.48 each week for 32 weeks, living costs would be NZ$10,671.36 and the same non-fee balance would rise to NZ$11,331.36.
The difference between those two choices is NZ$3,631.36 for one academic year. At the 12 percent repayment rate, clearing that extra amount later takes roughly NZ$30,261 of income above the threshold. That is the useful way to think about living costs: every weekly top-up is relief now, and it becomes a claim on future earnings once income passes the IRD line.
Practical checks before borrowing
Start with rent, transport, food, utilities, study costs and the number of weeks your course actually runs. Living costs are paid weekly in arrears, so the first payment usually arrives after the first study week rather than before it. If you need a bond, a laptop or upfront travel, course-related costs or savings may cover that better than relying on the first living-costs payment.
Next, check the gap after work income. If casual work covers NZ$120 a week, borrowing the full NZ$333.48 could create more debt than needed. If work hours are uncertain during exams or placements, a lower regular living-costs amount plus a buffer may be calmer than a plan that depends on maximum weekly shifts.
Finally, revisit the amount when circumstances change. StudyLink lets students change nominated living costs during study, but payments cannot be backdated to before the contact date when you nominate them after a course starts. Borrowing the maximum as a default is easy, but choosing the smallest workable amount is often the better long-term decision.
FAQ
How much can I borrow for New Zealand student-loan living costs in 2026? Up to NZ$333.48 a week. You can choose a lower amount, and the figure may reduce if you also receive a Student Allowance.
What is the course-related-costs cap? StudyLink says course-related costs are capped at NZ$1,000 per student-loan account, usually across 52 weeks. You can claim part of it now and another part later.
When do student-loan repayments start? For the 2027 tax year, repayments apply when income is above NZ$24,128. Inland Revenue calculates the repayment as 12 percent of each dollar over that threshold.
Does the loan have a setup fee? Yes. StudyLink lists a one-off NZ$60 establishment fee, added to the student-loan balance once payments are made.
Should I borrow the full living-costs amount? Only if the budget needs it. Living costs are repayable debt, so a smaller weekly draw can make a meaningful difference to the balance you carry into work.
Sources
- StudyLink, Student Loan, including course fees, course-related costs, living costs and the NZ$60 establishment fee.
- StudyLink, Student Loan living costs, current weekly cap and Student Allowance interaction.
- StudyLink, changes to payments from 1 April 2026, confirming the 2026 living-costs maximum.
- Inland Revenue, student-loan repayment threshold and repayment method, accessed 20 September 2026.
This is general information, not financial, tax or education funding advice. Check StudyLink and Inland Revenue for your own circumstances before applying or changing repayments.