Students studying overseas on exchange programmes will now be eligible for interest-free loans, according to a recent press release issued by the government.

Previously, borrowers were required to be in New Zealand for 183 or more continuous days to be eligible for an interest exemption, but Minister of Revenue Peter Dunne announced that the exemption will now be extended to apply to students studying outside of New Zealand as part of a formal exchange programme.

“[This] will remove an obstacle to further education and training that will ultimately benefit New Zealand when they return from their overseas study,” he said. The change will be included in a bill that is scheduled for introduction later this year and will be backdated to apply from 1 April, 2007.