can you use kiwisaver to pay off student loan
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Loan Guide: Can you use KiwiSaver to pay off your student loan?


A loan is like a debt where someone lends you money that you have to pay back after a certain period of time. People usually take out loans to buy things like a house or a car, pay huge medical bills or keep doing their college and university studies. 

When you take out a loan, you have to agree to pay the money back over a certain period of time. You will also have to pay interest, which is extra money that you have to pay on top of the money you borrowed.

So many people use different approaches to pay back the amount that they have borrowed in a given time frame.

Therefore, in this blog, we will discuss one of these loan repayment approaches and will answer you if you can use KiwiSaver to pay your student loan in a given time frame.  

What is Kiwisaver?

Kiwisaver is a government-sponsored retirement savings scheme that is designed to help New Zealanders save for their retirement. The scheme was launched in 2007, and since then, over 3 million New Zealanders have signed up.

Kiwisaver is a long-term savings scheme, and as such, it is important to understand how it works and what the benefits are before signing up.

Here are some key things to know about Kiwisaver:

  • Kiwisaver is a voluntary scheme, which means that you can choose whether or not to join.
  • If you do join, you will need to make regular contributions (either from your own salary or from your employer) to your Kiwisaver account.
  • The government also provides a yearly tax credit of up to $521 to encourage people to save.
  • Kiwisaver funds can be used for a variety of purposes, including buying your first home, saving for retirement, or paying for medical expenses.
  • You can access your Kiwisaver funds from the age of 65.

Kiwisaver is a great way to save for retirement, and the government incentives make it even more attractive.

If you are thinking about joining Kiwisaver, be sure to do your research and understand how the scheme works before making any decisions.

What is a student loan?

A student loan is a type of loan that is specifically designed to help students pay for their education. Student loans can be used to pay for tuition, room and board, books, and other expenses related to your education.

There are two main types of student loans: federal student loans and private student loans. Federal student loans are provided by the government and have fixed interest rates. Private student loans are provided by private lenders and have variable interest rates.

Student loans can be a great way to finance your education, but it is important to understand the terms of your loan before you sign on the dotted line.

Make sure you know the interest rate, the repayment terms, and the consequences of defaulting on your loan before you take out a student loan.

Can you use KiwiSaver to pay off your student loan?

KiwiSaver is a savings plan that is designed to help New Zealanders save for their future. You can choose to have your KiwiSaver contributions go into a savings account, which you can use to pay off your student loan.

However, you can only use your KiwiSaver savings to pay off your student loan if you have been contributing to KiwiSaver for at least three years.

What are different programs similar to KiwiSaver?

There are many different programs similar to KiwiSaver. Some of these programs are offered by the government, while others are offered by private companies.

Each program has its own rules and regulations, so it is important to research each one before deciding which one is right for you.

Some of the most popular programs similar to KiwiSaver include:

  • The Australian Superannuation system
  • The Canadian Registered Retirement Savings Plan
  • The United States 401k plan. 


If you have been a KiwiSaver member for at least 3 years, you may be eligible to make a withdrawal to help repay your student loan. You can make a one-off withdrawal or set up regular payments to help you repay your student loan.

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