National pledges to cut student loan repayment rate from 12% to 10% for graduates staying in New Zealand
National promises to lower student loan repayments for graduates who remain in New Zealand while toughening penalties on those who leave without paying.
The National Party has announced plans to reduce the compulsory student loan repayment rate from 12 cents to 10 cents on every dollar earned above the threshold, effective from April 2027, to encourage graduates to stay in the country. Borrowers moving overseas would face new penalties, including an additional 1% annual interest and tiered penalties for non-payment, alongside restrictions on KiwiSaver withdrawals and easier warrant issuance for serious defaults. The policy comes as overseas-based borrowers represent 93% of overdue loan debt, with only 30% meeting repayment obligations compared to 95% of New Zealand-based borrowers.
Covered byRNZStuffNZ Herald1NewsNewstalk ZBOtago Daily TimesThe SpinoffNot covered byNewsroomBusinessDeskinterest.co.nz
Coverage across the news outlets we track, as at publication.
What outlets are saying
RNZ
National vows to reduce student loan repayment rate if re-elected
The party is also vowing to crack down on overseas-based borrowers, with tougher debt recovery measures planned.
Stuff
National offers student loan sweetener in new election policy
National wants to cut the compulsory student loan repayment rate from 12% to 10% for Kiwis who stay in New Zealand, while toughening up on graduates who leave the country without repaying their debt.
NZ Herald
Election 2026: National pledges lower student loan repayments for graduates staying in NZ, new penalties on Kiwis overseas
Loan repayments would fall from 12 to 10 cents on every dollar above the threshold.
1News
Full video: National's Christopher Luxon makes policy announcement
The National Party leader is speaking from Auckland.
1News
National plans to ease student loan repayments for grads who stay in NZ
"That is how we keep talent here, as part of our wider plan to fix the basics and build the future," says Nicola Willis.
Newstalk ZB
Election 2026: National pledges lower student loan repayments for graduates staying in NZ, new penalties on Kiwis overseas
National is promising to lower compulsory student loan repayment rates for university graduates who stay in New Zealand, while increasing annual interest and buffing up penalties for those who move overseas, if re-elected.
Otago Daily Times
National vows to reduce student loan repayment rate if re-elected
NZ Herald
Prime Minister Chris Luxon speaks after pledging lower student loan repayments for grads staying in NZ
Retirement villages and student loan policies have been on the agenda over the weekend.
The Spinoff
The stick and the carrot: National promise lower student loan repayments if you stay, and tougher penalties if you leave
The compulsory student loan repayment rate would drop from 12% to 10%, while overseas-based borrowers who don’t pay would face new penalties , writes Henry Oliver in today’s excerpt from The Bulletin. To receive The Bulletin in full each weekday,…
Newstalk ZB
Perspective with Heather du Plessis-Allan: Is National's new student debt policy really going to stop our brain drain?
Jeez, I'm not going to lie, I love the punitive part of National's student debt policy.