Legislation aimed at reducing student loan debt has been passed by Parliament on Tuesday.
Since 2007, borrowers who went overseas automatically received a three-year repayment holiday.
That will now be reduced to one year, and borrowers will have to apply for a repayment holiday within six months of leaving New Zealand.
They will also have to supply details of an alternative contact person who lives in New Zealand before heading overseas.
The legislation also gives Inland Revenue the power to receive a borrower's contact details from the Studylink manager who administers their student loan.