The study Taking the pulse: medical student workforce intentions and the impact of debt1 published in the 16 July 2010 issue of the NZMJ concluded that student loan debt is a major factor in a significant proportion of medical graduates choosing to leave New Zealand and work overseas.Inland Revenue is aware medical students on average end up with a large student loan. But we also know that medical graduates with an average student loan leaving balance, and who take advantage of the voluntary workforce bonding policy, are forecast to repay their loan in about four years. The majority of borrowers are meeting their obligations.A student loan doesn't have to rule a borrower's life. The key is to make sure you understand all the options available.If you make extra repayments of $500 or more during the tax year (1 April - 31 March) you will generally qualify for the voluntary repayment bonus. An amount equalling ten percent of your voluntary repayments will be credited to your loan account after the end of the tax year. A large number of borrowers—many based overseas—are taking advantage of the bonus to help them repay their loan. See what difference voluntary repayments could make to your loan by trying out our student loan repayment calculator (http://www.ird.govt.nz/calculators/tool-name/tools-s/calculator-sl-repayments.html?id=righttabs).Our website (http://www.ird.govt.nz) has more information, including eligibility criteria, about the voluntary repayment bonus(http://www.ird.govt.nz/studentloans/payments/voluntary/bonus/). While you are there register online so you can view your loan balance and communicate with us by secure email. This is a great tool if you are going overseas as it makes it easy to stay in touch.If you do go overseas you need to let Inland Revenue know before you go and give us a contact address for while you are away. For the first three years you are away you are entitled to a repayment holiday, although interest still accumulates on your loan. Given the average size of a medical student's loan we strongly recommend making repayments during this period, otherwise interest will see the loan balance grow quickly. Making repayments is also simple and convenient if you use your credit or debit card(http://www.ird.govt.nz/news-updates/like-to-know-pay-credit-debit-card.html)Outside of repayment holidays, borrowers who travel overseas must continue to meet their student loan obligations. You can get full details about travelling or living overseas (http://www.ird.govt.nz/studentloans/overseas/) from our website. Note in some cases, you may qualify for an interest-free student loan(http://www.ird.govt.nz/studentloans/overseas/interest-free/)We realise student loans may not be a priority when you're enjoying your time overseas. But please don't ignore your obligations. Student loan arrears can restrict your lifestyle choices when you return to New Zealand.If you're having difficulty repaying your loan, contact us sooner rather than later. Together we can work out a solution that fits your circumstances. For example, you may qualify for an instalment arrangement so you can pay your arrears over a period of time.We'll do everything we can to help you get back on track. Charles Ronaldson Group Manager Assistance Inland Revenue

The study Taking the pulse: medical student workforce intentions and the impact of debt1 published in the 16 July 2010 issue of the NZMJ concluded that student loan debt is a major factor in a significant proportion of medical graduates choosing to leave New Zealand and work overseas.Inland Revenue is aware medical students on average end up with a large student loan. But we also know that medical graduates with an average student loan leaving balance, and who take advantage of the voluntary workforce bonding policy, are forecast to repay their loan in about four years. The majority of borrowers are meeting their obligations.A student loan doesn't have to rule a borrower's life. The key is to make sure you understand all the options available.If you make extra repayments of $500 or more during the tax year (1 April - 31 March) you will generally qualify for the voluntary repayment bonus. An amount equalling ten percent of your voluntary repayments will be credited to your loan account after the end of the tax year. A large number of borrowers—many based overseas—are taking advantage of the bonus to help them repay their loan. See what difference voluntary repayments could make to your loan by trying out our student loan repayment calculator (http://www.ird.govt.nz/calculators/tool-name/tools-s/calculator-sl-repayments.html?id=righttabs).Our website (http://www.ird.govt.nz) has more information, including eligibility criteria, about the voluntary repayment bonus(http://www.ird.govt.nz/studentloans/payments/voluntary/bonus/). While you are there register online so you can view your loan balance and communicate with us by secure email. This is a great tool if you are going overseas as it makes it easy to stay in touch.If you do go overseas you need to let Inland Revenue know before you go and give us a contact address for while you are away. For the first three years you are away you are entitled to a repayment holiday, although interest still accumulates on your loan. Given the average size of a medical student's loan we strongly recommend making repayments during this period, otherwise interest will see the loan balance grow quickly. Making repayments is also simple and convenient if you use your credit or debit card(http://www.ird.govt.nz/news-updates/like-to-know-pay-credit-debit-card.html)Outside of repayment holidays, borrowers who travel overseas must continue to meet their student loan obligations. You can get full details about travelling or living overseas (http://www.ird.govt.nz/studentloans/overseas/) from our website. Note in some cases, you may qualify for an interest-free student loan(http://www.ird.govt.nz/studentloans/overseas/interest-free/)We realise student loans may not be a priority when you're enjoying your time overseas. But please don't ignore your obligations. Student loan arrears can restrict your lifestyle choices when you return to New Zealand.If you're having difficulty repaying your loan, contact us sooner rather than later. Together we can work out a solution that fits your circumstances. For example, you may qualify for an instalment arrangement so you can pay your arrears over a period of time.We'll do everything we can to help you get back on track. Charles Ronaldson Group Manager Assistance Inland Revenue