New Zealand Legislation: Acts

59 Student Loan Scheme Act 1992 amended

• (1) The Student Loan Scheme Act 1992 is amended by inserting the following section after section 2:

  “2A Application of Act to bonded scholarships

  • “(1) In this section, bonded scholarship means an allowance or agreement that is declared under section 307AC of the Education Act 1989 to be a bonded scholarship.

    “(2) Any amount repayable under a bonded scholarship (the default amount), along with any interest payable in accordance with the scholarship agreement, may be recovered under this Act as if—

    • “(a) the default amount were a student loan; and

    • “(b) the recipient of the scholarship were a borrower; and

    • “(c) the scholarship agreement were a loan contract.

    “(3) Despite any enactment or rule of law, if a provision in an agreement for a bonded scholarship conflicts with this provision, this provision prevails.”

  (2) For the purpose of giving effect to section 2A of the Student Loan Scheme Act 1992 with respect to TeachNZ scholarships entered into before that section comes into force, if TeachNZ scholarships are declared under section 307AC of the principal Act to be bonded scholarships, then—

  • (a) the provisions of the standard 2005 loan contract for student loans that relate to payment of interest are deemed to be included (with any necessary modifications) in the agreements for TeachNZ scholarships; and

  • (b) those provisions are deemed always to have been part of the agreement and therefore apply whether any default under the scholarship occurs before or after the commencement of this section.