student loan idea (not mine)

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Forums › Finance and wealth management › student loan idea (not mine)

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ScottStevensNZ

245 posts

Master Geek

#458701 14-Apr-2011 13:12

I also wonder how much of this is going to be moot - I suspect there are going to be some serious changes to student loans in the fist budget of the govt's next term.
Budget policy statement (according to treasury) is due no later than 31 March and the Budget must be introduced by 31 July.

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nzpat

167 posts

Master Geek

#458738 14-Apr-2011 13:59

Third Year Uni Student here, $0 Student loan, I work part time during semester and full time in the holidays. It actually not hard to manage if your careful with what you spend. PS your plan sounds stupid, Studylink pays your tertiary provider directly so you wont see a single cent of your course costs.

bazzer

3438 posts

Uber Geek

Trusted

#458772 14-Apr-2011 15:26

nzpat: Third Year Uni Student here, $0 Student loan, I work part time during semester and full time in the holidays. It actually not hard to manage if your careful with what you spend. PS your plan sounds stupid, Studylink pays your tertiary provider directly so you wont see a single cent of your course costs.

Except that you could've saved the money that you spent on paying your fees and let the loan pay the fees (then invested your money). The fact is that every student has fees, course costs, living costs etc. Whether you choose to utilise the interest free student loan scheme is up to you, but given it's "free" you'd be silly not to.

Further than that, don't you get a discount if you pay back more than the minimum? It's no risk, so why not do it? Because you're "ripping off" the taxpayer? As if! Even if the rules are changed, it wouldn't affect students immediately and even if it did you've got the money to pay it back if you need to.

nickd

447 posts

Ultimate Geek

#458966 14-Apr-2011 21:44

nzpat: [...] PS your plan sounds stupid, Studylink pays your tertiary provider directly so you wont see a single cent of your course costs.

Remember you're allowed to take living expenses/petrol/books etc out on your loan too. That comes direct to your bank account.

sneeble

29 posts

Geek

#460789 20-Apr-2011 08:58

I worked at a certain government dept very heavily involved in this (they have spiders out there btw ppl). No I am not going crazy, I was warned when I started there.

There are some students who apply for and get the student allowance, they then bank the allowance and use it to pay off their student loan when it is transferred to IRD. The financial year for student loans is 1 Jan to 31 Dec - it is then transferred to IRD on Feb 28. IRD then writeoff the interest. MSD do not write off the interest. Students may also be asked for proof of expenditure on course related costs, living costs can only be paid IF the student is not receiving or receiving less than (currently) arund $169 in student allowance.

Another thing which is a huge issue is when they are eligible, there is a huge problem with high schools telling the not so bright kids and their parents that they can go to tertiary education and get the stdent allowance when the kids are under 18, unfortunately this is not the case. To receive the student allowance and be under 18 the student must have passed at least 42 credits at level 3 - which for the rest of us is the equivilent to 7th form. Most of these kids being pushed out dont have level 1.

..on hold to vodafone right now 51 minutes and counting.......

nzpat

167 posts

Master Geek

#460849 20-Apr-2011 10:24

nickd:
nzpat: [...] PS your plan sounds stupid, Studylink pays your tertiary provider directly so you wont see a single cent of your course costs.

Remember you're allowed to take living expenses/petrol/books etc out on your loan too. That comes direct to your bank account.

Sweet as have fun with your extra $150-300 per year, for the risk of getting screwed over if you get audited and all the hassle of setting it up. get a job.

nickd

447 posts

Ultimate Geek

#461016 20-Apr-2011 17:33

It's a bit more substantial than that.

Course Related Costs: You can borrow up to $1,000 per Student Loan account (usually a 52 week period) for course-related costs.

Living Expenses: You can borrow up to $169.51 (from 1 April 2011) a week for living costs while you're studying, or on a study break of three weeks or less, like mid-semester breaks (less any amount you get from Student Allowance).

As for getting a job, I work full time.

nzpat

167 posts

Master Geek

#461021 20-Apr-2011 17:44

nickd: It's a bit more substantial than that.

Course Related Costs: You can borrow up to $1,000 per Student Loan account (usually a 52 week period) for course-related costs.

Living Expenses: You can borrow up to $169.51 (from 1 April 2011) a week for living costs while you're studying, or on a study break of three weeks or less, like mid-semester breaks (less any amount you get from Student Allowance).

1000 + (30 Weeks @ $170 (which is near impossible to get)) = $6100 sitting in at 4.5% (not even factoring in that you wont get the money all at the start) = $274.5 Extra per year. My point still stands.

As for getting a job, I work full time.

bazzer

3438 posts

Uber Geek

Trusted

#461136 20-Apr-2011 23:01

nzpat:
nickd: It's a bit more substantial than that.

Course Related Costs: You can borrow up to $1,000 per Student Loan account (usually a 52 week period) for course-related costs.

Living Expenses: You can borrow up to $169.51 (from 1 April 2011) a week for living costs while you're studying, or on a study break of three weeks or less, like mid-semester breaks (less any amount you get from Student Allowance).

1000 + (30 Weeks @ $170 (which is near impossible to get)) = $6100 sitting in at 4.5% (not even factoring in that you wont get the money all at the start) = $274.5 Extra per year. My point still stands.

As for getting a job, I work full time.

I dont see your point. It's $300 for doing nothing, and they're not doing anything "wrong" so they're not going to get audited. There are no criteria relating to "needs" so everyone can get a loan if they want to, whether they need the money or not. Even if you have your own money, why wouldn't you take an interest free loan that is offered to you?

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