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Ask IRD about student loan repayments after losing work

Money, banks and bills

Use it when

You have a student loan and your income has dropped to little or nothing.

Fill in the [brackets]

Subject: Student loan repayments - IRD number [number]

Dear Inland Revenue, My IRD number is [number]. I have a student loan and my employment ended on [date], so my income has dropped to [$amount a week / no income]. Could you please: 1. Confirm what compulsory repayments I owe at my current income, and update my records. 2. Make sure my employer's deductions (if any) stop now that my employment has ended, and confirm what I should do if I start a job with a different tax code (SL). 3. Tell me what options exist if I cannot meet repayments, including hardship, instalment arrangements or any other relief that applies to my situation. I am currently [in NZ / overseas] and my address is [address]. Thank you, [Your name] [Phone]

Tips

  • Check the current repayment thresholds and rules at ird.govt.nz. They change, so I have not put figures here.
  • If you are on a benefit, ask IRD whether repayments apply to your income. Most benefits are not treated like wages for compulsory repayments, but confirm.
  • If you are overseas for 183 days or more, different rules (repayment obligations and interest) apply. Do not ignore IRD letters.
  • Keep your address and contact details up to date in myIR to avoid penalties.
  • Use the SL tax code only when you actually have a student loan so you are not over-deducted.

General information, not legal advice. Keep a copy of everything you send. Spotted something out of date? Email help@unemployed.nz.