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Studying
Allowances, the loan and what it costs to repay it, and what a year in a hall of residence actually adds up to.
12 situations worked through, 8 of them with the sums shown. Each one links to the guide that sets out the rules behind it, and that guide is where any rate or threshold is kept current.
The people in these situations are illustrations written to show how the rules land on somebody, not real customers and not case histories. The arithmetic is real and the rules are real; the names and the circumstances are made up to teach.
Nothing on this page matches that. Try a shorter word, or the full list of situations.
Halls of Residence Costs
Ana - a catered hall fee vs the living costs loan
Ana is starting first year and takes a catered hall place with an annual fee of $22,000 for the academic year. She does not qualify for a Student Allowance because of her parents' income, so she borrows the maximum Student Loan living costs to help.
- Catered hall fee: $22,000
- Living costs borrowed: $333.48 per week
- Over a 40-week study year: $333.48 × 40 = $13,339
Gap her family must plan for: $22,000 - $13,339 = $8,661
Even at the maximum, the living costs loan covers only about $13,300 of the $22,000 fee, leaving an $8,661 gap. And that $13,339 is borrowed, so it adds to Ana's student loan and must be repaid later. The living costs also have to stretch to her phone, transport and textbooks, so in practice the family gap is larger than $8,661.
Ben - catered vs self-catered
Ben is choosing between a catered hall at $22,000 and a self-catered hall at $15,000. The self-catered fee looks $7,000 cheaper, but he will buy his own food at about $90 a week.
- Catered hall (meals included): $22,000
- Self-catered hall fee: $15,000
- His own food: $90 × 40 weeks = $3,600
- Self-catered total: $15,000 + $3,600 = $18,600
Real saving from self-catering: $22,000 - $18,600 = $3,400
Once food is added back, self-catering saves about $3,400, not $7,000. That is a worthwhile saving, but only if Ben is happy to shop, cook and stick to a food budget. If he overspends on groceries or eats out often, the saving shrinks or disappears. Catering costs more but removes that risk and effort.
Chloe - a hall vs a first flat, full year
Chloe compares her $22,000 catered hall for the term-time year against a share of a flat at $200 a week on a 52-week lease. She adds up a full year of flatting, including food and bills.
- Flat, first-year cash outlay: $17,160 + $1,000 + $800 = $18,960
- Less the refundable bond back later: about $18,160 net
- Catered hall (term time only): $22,000
- Hall per week: $22,000 ÷ 41 = about $537
- Flat per week (all in): $17,160 ÷ 52 = $330
The flat is roughly $3,000 to $4,000 cheaper and covers 52 weeks, but you cook, pay bills and run a lease
The Patel family - planning the funding gap and the timing
The Patels have a $22,000 catered hall fee, paid in three instalments across the year, with the first due before their daughter moves in. She will borrow the maximum living costs of $333.48 a week.
- Annual fee: $22,000, in 3 instalments
- Each instalment: $22,000 ÷ 3 = about $7,333
- StudyLink support over 40 weeks: $333.48 × 40 = $13,339
- Total gap for the year: $22,000 - $13,339 = $8,661
First instalment of about $7,333 is due before any weekly StudyLink payments arrive
The whole-year gap is $8,661, but the trap is timing. The first $7,333 instalment lands before the weekly $333 payments have built up, so the family should have roughly that first instalment saved and ready before February. After that, the weekly StudyLink payments feed the later instalments, with the family topping up the remaining gap. Mapping instalment dates against StudyLink payment dates avoids a mid-semester shortfall.
Student Allowance and Student Loan NZ
Tane, 25, London
Graduated with $52,000 student loan. Went to London for a 2-year OE. Didn't make overseas repayments.
This one turns on the rules rather than on a calculation, so there are no sums to show.
Sophie, 20, Auckland
Receives Student Allowance of $305/week. Works part-time at a cafe earning $280/week (under the ~$253 threshold after tax adjustments).
This one turns on the rules rather than on a calculation, so there are no sums to show.
Jayden, 18, Wellington
Started a 4-year engineering degree. Assumed Fees Free covered all 4 years.
This one turns on the rules rather than on a calculation, so there are no sums to show.
Emma, 28, Christchurch
Graduated with $45,000 loan. Earns $72,000. Considered making voluntary extra repayments.
- Compulsory repayments: 12% of ($72K - $24,128) = $5,745/year
- Instead of extra voluntary repayments of $200/month...
- ...invested $200/month into a diversified KiwiSaver growth fund at ~6% return
- After 8 years: KiwiSaver extra = ~$24,000 (plus employer match)
- Student loan still being repaid at 0% interest (free money)
- Net benefit of investing vs extra repayments: approximately $8,000+
Student Loan Repayment Guide
Teacher Loan Journey
Teaching degree graduate with typical loan:
This one turns on the rules rather than on a calculation, so there are no sums to show.
OE (Overseas Experience) Decision
Graduate considering UK working holiday with $38,000 loan:
- Salary: $55,000
- Annual repayment: $3,705
- Time to clear: 10.3 years
- Total repaid: $38,000
- Interest paid: $0
Forgot to Update Tax Code
Started new job, didn't tell employer about student loan:
- Salary: $60,000
- Tax code: M (should be ME)
- Student loan deductions: $0
- Take-home seemed higher than expected
Medical Graduate Strategy
Doctor with large loan but high income potential:
- 7 years study: Fees + living costs
- Total loan: $120,000
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Every situation
Situations are taken from the guides listed above and are worked examples for education, not advice. Figures used in an example were current when the guide was written; the guide holds the maintained figure. Last reviewed 2026-09-07. See also the arithmetic on its own, every question the site answers and the guides.