Thread: The Student Loan Bubble

That's right.

Originally Posted by ENT

That's right.

If you got a degree in economics then, and went robbing post offices, would that be classed as the earning from the study subject?

Originally Posted by ENT

So I can have a combined net income of around $NZ 60,000 plus without having to pay back my initial student loan, as long as I pay my legitimate taxes and interest on the loan and don't earn anything over NZ$ 19,999/anum from my degree.

Where on earth did you get a student loan with repayments contingent on 'earnings from your degree' from?? Sounds fishy to me.

Those were the NZ student loan conditions before the gov. moved the goal posts. Since then, the rules have become more draconian.

Originally Posted by pseudolus

Originally Posted by ENT

That's right.

If you got a degree in economics then, and went robbing post offices, would that be classed as the earning from the study subject?

I doubt it, but I'm sure some other enterprising young bugger has thought of a similar idea.

Originally Posted by ENT

Those were the NZ student loan conditions before the gov. moved the goal posts. Since then, the rules have become more draconian.

That has never been a condition of student loans in NZ.

Mandatory repayments are scheduled on a repayment threshold of $19,084 per annum taxable income irrespective of degree or source.

Bollix smart arse.

What you're referring to is your loan conditions, established after 2004, not mine.

Originally Posted by ENT

What you're referring to is your loan conditions, established after 2004, not mine.

What I am referring to is the Student Loan system in NZ; and repayments based upon earnings linked to a/the degree has never been a condition. Period. If that is a condition of your loans then you'd be notable as the only person in the entirety of NZ to have that exception.

Care to explain how and why it is that the NZ Govt. and IRD have made this highly irregular special exception in your case, ENT?

You , as usual are talking shit.

My repayments to NZ IRD are in fact lower than I previously stated.

If you want any further explanations, go whistle. The deal is between me and NZ IRD.

Originally Posted by ENT

You , as usual are talking shit.

No I'm not, ENT. You are either terribly confused or you're lying.

Originally Posted by ENT

The deal is between me and NZ IRD.

Care to explain how and why it is that the NZ Govt. and IRD have made this highly irregular special exception in your case, ENT?

Go bite your pillow, Aunty!

Do you know the difference between an income and a turnover?
Do you know what a taxable income is?

Do you have an accountant and a lawyer to handle your contracts?

If not, why not?

Originally Posted by ENT

Do you know the difference between an income and a turnover?
Do you know what a taxable income is?

Irrelevant / red-herrings. Fact is ENT that you're stating that you have an exception to your student loan agreement that nobody else - not a single solitary person - in NZ has.

So what is more likely: a) that the IRD has, in fact, made this exception for you - an exception that makes no sense from either perspective, for one they would have to dedicate special resources just for you to define 'general income' from 'income related to your degree'; or b) you're lying/confused.

Originally Posted by ENT

More total crap, misquotes and exaggerations along with false claims and accusations from you.

Crickey, you're really squirming now! Misquotes? Exaggerations?? False claims??? Where, exactly?

Methinks you doth protest just a little bit too much. Embarrassed at having been caught telling porkies, perhaps?

Originally Posted by ENT

Go research the whole deal yourself

Righto...

The IRD website: Student loans

All of the repayment deduction exemptions are given on there. 'Earnings linked to degree' isn't amongst them. What a surprise.

Those aren't the pre-2004 conditions.

Get a good lawyer and an accountant and then talk to the tax man, as I did.

I'm happy with our initial contract and subsequent arrangement, as I'm sure others of us are.

You're not, that makes me very happy.

Originally Posted by ENT

Those aren't the pre-2004 conditions.

Pre/post, it doesn't matter.

Student loan repayments have never been based on earnings related to a borrowers degree. It's ridiculous to think that they would be, imagine the sheer bureaucratic nightmare it would entail. Makes no sense whatsoever.

You're lying.

Originally Posted by ENT

Get a good lawyer and an accountant and then talk to the tax man, as I did.

But, but, we were told Pee Wee is a lawyer?

Originally Posted by AntRobertson

Originally Posted by ENT

Those aren't the pre-2004 conditions.

Pre/post, it doesn't matter.

Student loan repayments have never been based on earnings related to a borrowers degree. It's ridiculous to think that they would be, imagine the sheer bureaucratic nightmare it would entail. Makes no sense whatsoever.

You're lying.

You're the liar, kiddo, and you're talking out of your arse.

Student loan repayments were in fact based on earning capacity, and specifically on capacity to earn an income from one's degree structure from the very beginning.

The reason many students left the country after getting their degree was because they couldn't earn an income in the country from their degree, or otherwise, sufficient to pay off their student loans.

So many left that the government had to change the rules incrementally over a number of years in order to force students to pay off their loans before they even finish their courses in some cases these days.

Before then, university education was free, as it was in Oz and still is in several countries.

As I said, I'm happy with the agreement I have with NZ IRD, you aren't. Too bad.

Originally Posted by Boon Mee

Originally Posted by ENT

Get a good lawyer and an accountant and then talk to the tax man, as I did.

But, but, we were told Pee Wee is a lawyer?

Peewee reckons he's a lawyer, a lowyer, and a furniture designer.

I think his real name is Walter.

Originally Posted by ENT

Student loan repayments were in fact based on earning capacity

Yes. Once earning over the threshold repayments are mandatory and deducted via tax by the IRD.

Originally Posted by ENT

and specifically on capacity to earn an income from one's degree structure from the very beginning.

No. Deductions are based on any income earned over the threshold.

Originally Posted by ENT

Originally Posted by Boon Mee

Originally Posted by ENT

Get a good lawyer and an accountant and then talk to the tax man, as I did.

But, but, we were told Pee Wee is a lawyer?

Peewee reckons he's a lawyer, a lowyer, and a furniture designer.

I think his real name is Walter.

You girls sure do love your irrelevancies/red-herrings/logical fallacies don't you.

Do you really think it muddies the waters enough to cover your lies.

You're talking about current guidelines, not those of pre-2004.

https://www.ird.govt.nz/studentloans...pay-exemp.html

Student loan repayment deduction exemptions

Find out about student loan repayment deduction exemptions if you're a salary or wage earner in New Zealand.

You may qualify for a repayment deduction exemption if you're working in the same year you're studying full-time, you're a New Zealand-based borrower and think you'll earn under the annual repayment threshold of $19,084. This means you don't have to use a student loan repayment code and you won't have student loan repayment deductions made from your salary or wages. This exemption applies to main and secondary earnings.

You can apply for the repayment deduction exemption if:

- you expect to earn under the annual repayment threshold ($19,084) for the 2013 tax year, and

- you are about to start (or have already started) a programme of study that is:
32 weeks or longer in duration in any 52-week period and at least 0.8 of equivalent full-time student units, or

- 12 weeks or longer in duration in any 52-week period and at least 0.3 of equivalent full-time student units or the equivalent on a pro-rata basis, and
you're a New Zealand-based borrower.

You can find more information about equivalent full-time study at the StudyLink website.

You can apply for a repayment deduction exemption through myIR Secure Online Services.

Note
If you only have one job and you don't expect to earn over the pay period threshold at any time during the year while you're studying full-time, then you don't need to apply for the repayment deduction exemption. This is because your employer won't make student loan deductions when you earn under this amount. If you're unsure about the amount you'll earn from your salary or wage, you should still apply for the exemption.

Time period covered by repayment deduction exemption

The exemption applies for the period you meet the criteria, for up to one tax year (1 April - 31 March) at a time. It covers the time between semesters including the Christmas break as long as you're continuing your study programme in the next semester. If you're going to continue study in the next tax year, you'll need to reapply for the exemption if you continue to meet these conditions.

Change in your circumstances

You'll need to let us know if your circumstances change as your repayment deduction exemption may no longer apply. You should make changes to your exemption or make changes to your study dates through your myIR account if:

-you stop studying full-time
-you think you will earn more than $19,084 for the tax year
-you become an overseas-based borrower.

If we identify that you no longer qualify, we'll cancel your exemption and advise you and your employer.

Once your exemption is cancelled, your employer will start making standard student loan deductions from your salary or wage.

You should check that your employer has the right tax code for your main or secondary job and that it includes the "SL" repayment code.

Exemptions from the IRD website. Number of exemptions based on earnings related to earnings related to degree = None. Zero. Nada. Zip.

It really is a very odd thing to be lying about, ENT. I can't see any reason why you'd even want to be disingenuous in relation to something that's so easily disprovable.

Originally Posted by ENT

You're talking about current guidelines, not those of pre-2004.

Again, it doesn't matter. If you had a loan pre-2004 that still exists today then the regulations as at today apply to the remainder balance. Read your loan agreement.

And irrelevant in any event - because there has never been that exemption.

Why should I lie if I don't have to pay my loan back?

Like I said, get a good lawyer and an accountant and figure the deal out.

I assume that you still have your original student loan contract which clearly states the terms and conditions of that loan. I still have mine.

Originally Posted by ENT

Why should I lie if I don't have to pay my loan back?

That's what I'm saying: why would you lie, period, over something like this. It makes no sense. But lying you most assuredly are because NZ student loan repayments have simply never been tied to earnings related to degrees.

It doesn't even bare superficial examination. Think about what you’re saying: a law graduate who works in media or teaching would not be obliged to pay back their student loans based upon the exemption you have stated despite the fact that they're earning in excess of the repayment threshold. Ridiculous. The IRD has neither the dedicated resources nor department to discern origin of income related to degrees. They tax you on income from any occupation, Not too mention the fact that student loans are also available for non-degree courses.