Student Loan and Student Allowance if you are retraining as an adult

Student Loan: what it covers

• Compulsory course fees.
• Course-related costs, up to $1,000 (books, equipment, computer).
• Living costs, up to $333.48 a week from 1 April 2026.
• A one-off $60 establishment fee is added to your loan.

You need to be a New Zealand citizen, or ordinarily resident with at least 3 years in NZ and 3 years on a residence class visa (other criteria can apply), and enrolled in an approved course with an approved provider. If you have studied before, you must meet the passing requirements and not have hit your loan limit.

Student Allowance: what it covers

A Student Allowance is a weekly living-cost payment that you do not repay. Rates from 1 April 2026 (after tax at the M code):

• Most people must be aged 18 to 65 (some 16 to 17 year olds may qualify) and generally studying full-time.
• Your income is tested. If you are 24 or over, your partner's income can be counted. For under 24s, parental income can be counted.
• There is a limit on how long you can receive it in total. StudyLink has a page called 'How long you can get a Student Allowance for', so check it before you commit to a long course.
• You cannot receive it if you are on a benefit you can stay on while studying, if you or your partner get NZ Super or Veteran's Pension, or if you are in prison.

Worked example

Aroha, 41, single and living away from home, is made redundant from a retail job. She wants a 1-year Level 5 certificate. She applies to StudyLink for fees and course-related costs on a loan. For living, she compares: a Student Allowance of $380.43 a week (if she is eligible after the income test) with borrowing up to $333.48 a week as a loan. The allowance does not have to be repaid, so she prefers it, and uses the loan only for fees and course costs. She tells her bank and lets her landlord know her income is changing.

Repaying a loan

Repayments are taken by Inland Revenue through payroll once your income is above the repayment threshold, at 12 cents in the dollar above it. Inland Revenue's page for the 2026 tax year gives a threshold of $24,128 a year ($464 a week). Thresholds can change, so check the current figure at ird.govt.nz. Loans are generally interest-free while you live in New Zealand, but if you move overseas you must tell Inland Revenue and different rules apply: Inland Revenue lists an overseas-based repayment falling due each 31 March unless you have a temporary suspension. Check the 'Living overseas with a student loan' pages at ird.govt.nz before you go.

How to apply

1. Create a RealMe login and a MyStudyLink account.
2. Apply as early as you can. Applications for the next year usually open in the months before study starts.
3. Your provider confirms your enrolment.
4. Keep your results. Failing too many courses can stop you borrowing again.