150,000 student loan borrowers hit by Inland Revenue’s interest charge error
A system error at Inland Revenue impacted over 150,000 student loan borrowers. The mistake led to incorrect interest charges, affecting both past and current repayments. Officials corrected the problem over the weekend of December 6 and 7, 2025.
The error caused some borrowers to pay too much interest, while others paid too little. In total, around $15 million was miscalculated—less than 0.1% of all student loan balances. No single institution was named in connection with the issue.
About 23,000 people who had already cleared their loans received refunds, averaging $10.50 each. Another 64,500 borrowers still repaying their loans got a credit, with most receiving around $10. Meanwhile, 67,000 individuals had incorrect interest added to their accounts before it was later removed, with the majority seeing adjustments under $20.
One borrower was initially told she owed an extra $276.61, only to receive a $1.31 refund once the error was fixed. Inland Revenue assured all affected that no unexpected bills would arrive. The department also confirmed it works to resolve such issues quickly, though some may take time to identify.
The total amount corrected came to approximately $15 million. All impacted borrowers were notified, and no further action is required on their part. The fix ensures interest charges now reflect the correct amounts.
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