The Student Loan scheme is a loan from the government to help with your study costs.

Student loans are interest free for borrowers living in New Zealand for 184 or more consecutive days (about six months). If you do go overseas for more than 184 days you will be paying 6.6% interest.

There are 3 parts to a student loan plus a $50 administration fee for each loan account you use (from 1 January 2011 the administration fee is changing to a $60 establishement fee). You don't have to borrow for all three parts of the loan.

1. Compulsory fees. Pays the entire amount of your tuition fees (including Student Association fees) for study at a university or tech. Fees are paid directly to your institution by StudyLink.
2. Course-related costs. Up to $1,000 a year for things like stationery, textbooks, childcare, travel or computer equipment. The money is put directly into your account as a lump sum.
3. Living costs. You can borrow up to $163.38 a week for living expenses and this is direct credited to your account each week. The $163.38 maximum goes down by the amount of Student Allowance you receive after tax. Find out more on the StudyLink website.

Loan vs Allowance
What you borrow for living costs goes down by your student allowance.

Student allowance after tax + Student loan living costs = $163.38.

For example, if your student allowance is $100 a week after tax, then you can only borrow up to $63.38 a week for your living costs.