Regulations for student loan contracts
New regulations have been made to exempt student loan contracts from the credit contract protections contained in the Credit Contracts and Consumer Finance Act.
The changes are being made because student loans have their own statutory regime, unlike many other types of credit contracts covered by the Credit Contracts and Consumer Finance Act (CCCFA) 2003. They are different to other types of commercial loans as they are interest-free and have an income-related repayment system for those living in New Zealand. They also differ because they are a form of subsidised student financial support.
The terms and conditions attached to the regulations will be of a similar standard to those required under the Credit Contracts and Consumer Finance Act.
The new regulations exempting the student loan contract are a temporary measure until key protections can be included in the Student Loan Scheme Act 1992.
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