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Student loan and child support when you're unemployed or moving overseas

7 minute readMoney & bills

In short

NZ student loan repayments are 12% of income over the repayment threshold ($24,128 a year, about $464 a week, per IRD), so with little or no income there's little or nothing to repay. Go overseas and the rules change: you must make minimum repayments or get a temporary repayment suspension, and interest may apply (rules have been changing, so check with IRD before you leave). Child support doesn't stop when you lose your job: ask IRD to reassess your income and set up a payment plan before you fall behind.

Student loan when you lose your job in NZ

  • Repayments are deducted through PAYE at 12% on income above the repayment threshold. IRD's repayment page gives the threshold as $24,128 a year ($464 a week). Check ird.govt.nz that this is still the figure for the tax year you're in.
  • If you're on a benefit, no repayment is deducted from the benefit itself. You only repay on income above the threshold.
  • If you earn less than the threshold in the year, you don't repay for that year. If your total income for the year ends up over the threshold (for example from redundancy pay) you may have an end-of-year repayment. IRD calculates this after 31 March.
  • Secondary-job income is charged at 12% from the first dollar.
  • If you live in NZ your loan is generally interest-free; check IRD's page for exceptions.

Student loan if you go overseas

  • If you live overseas your repayments aren't based on your income in the same way. Per IRD, you need to make minimum repayments or apply for a temporary repayment suspension if you can't.
  • IRD lists 31 March as the date overseas-based borrowers' repayments are due (unless you have a temporary repayment suspension). Interest, fees and amounts for overseas borrowers have been changing in 2025 and 2026, so check the current figures on ird.govt.nz rather than relying on a number here.
  • Tell IRD before you leave. Update your contact details in myIR so letters don't go astray.
  • Not repaying can lead to penalties, interest and enforcement action. Contact IRD early if you can't pay.

Child support when your income drops

  1. Child support is assessed on your income and care of the children. It's collected by Inland Revenue. Tell IRD as soon as your income changes: you can ask for an estimate of income to be reassessed (a 'change of assessment' or income estimate).
  2. If you're on a benefit, a minimum payment may apply. Check current amounts with IRD; if you can't pay, ask about options.
  3. Don't stop paying silently. Unpaid child support builds up with penalties, and it isn't cleared by the No Asset Procedure. Contact IRD to arrange a payment plan.
  4. If you receive child support and the payer loses their job, contact IRD. Your Working for Families entitlements may also change.
  5. Child support and Work and Income: ask your case manager whether child support affects the benefit you're getting, and about exemptions.

Message to IRD child support

I've lost my job as of [date] and my income has dropped to [amount]. I'd like to update my income estimate and ask for my child support assessment to be reviewed. I'd also like to set up a payment plan for any arrears. My IRD number is [number].

Getting help

  • Inland Revenue: 0800 227 773. Use myIR to update your income details.
  • MoneyTalks 0800 345 123 (text 4029) can help budget for student loan and child support.
  • Community Law can give free legal advice on child support disputes.

Sources

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.

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