Back Pocket Boost for Graduates

National’s Back Pocket Boost for Graduates will reward young graduates who choose to stay in New Zealand

A re-elected National Government will let Kiwis with student loans keep more of what they earn, while toughening up on those who leave the country before paying back their loan. National will reduce the compulsory student loan repayment rate from 12 per cent to 10 per cent from 1 April 2027 and introduce tougher measures to recover student loan debt from people who move overseas.

Encouraging young people to stay in New Zealand to build a career, start a business, raise a family and make a contribution to the community and economy is critical to National’s plan to fix the basics and build the future.

What we'll do

Reduce the compulsory student loan repayment rate for domestic borrowers from 12 per cent to 10 per cent from 1 April 2027.

This means that: • An early career accountant earning $75,000 per year will keep an additional $39 each fortnight, or around $1,000 a year. • An early career engineer earning $80,000 per year will keep an additional $43 each fortnight, or around $1,100 a year. • A junior doctor earning $100,000 per year will keep an additional $58 each fortnight, or around $1,500 a year.

Introduce tougher measures to recover student loan debt from people who move overseas

New financial penalties: 1 per cent added to annual interest on overseas-based borrower balances, taking it to 6.6 per cent, with tiered penalties for sustained default, on top of existing late payment interest. Restricted KiwiSaver withdrawals, so people who move overseas permanently must clear their student loan before accessing KiwiSaver. Tighter arrest settings, so arrest warrants can be sought for serious, sustained default without needing to prove a borrower knowingly refused to pay.