Deferring repayment of your student loan
Under the terms of your student loan credit agreement, you are expected either to make regular repayments, or to defer repayment if your income falls under a certain level.
Problems repaying your student loan
If you have financial problems and cannot defer repayment or meet your monthly repayment amount, you must let Erudio Student Loans know as soon as possible.and they will advise you of your options.
How to defer your student loan repayments
If you took out a student loan for a course that started before September 1998, you can apply to defer your repayments if your income falls under a certain amount.
If you started your course in or after September 1998, the repayment arrangements will be different. For details, follow the link below.
When can you defer?
You can apply to Erudio Student Loans to defer your student loan repayments if all these three conditions apply:
- you took out the loan for a course that started before September 1998
- your gross earnings are £2,227 or less a month which is equivalent to an annual gross income of £26,727 The rates for 2015/16 are not yet available.
- you can supply documentary evidence that your income is below this amount
If you are planning to go abroad for an extended period of time, you may also be able to postpone your repayments. But your income level in your new country must still be below the UK income threshold.
You will continue to be charged interest during any period of deferment.
How to defer
You apply to defer repayments by sending a deferment application form to Erudio Student Loans. You can get a copy of the form by calling Erudio Student Loans on 0333 003 7188 or by emailing firstname.lastname@example.org
To assess your eligibility for deferment, Erudio Student Loans will only take your income into consideration - you do not need to provide details about the income of any spouse, partner, parent or other relative.
Until you receive confirmation of deferment in writing, you must assume that repayments are due, regardless of whether your income falls below the deferment threshold.
When applying to defer repayments, you will need to provide supporting documentation. See 'Deferring Student Loans: which documents to supply' to find out more.
If you are yet to make your first repayment
In the February after you complete your studies, Erudio Student Loans will send you a letter advising you that you will be due to start repaying your loan.
A deferment application form will be enclosed with this letter and you will be given the opportunity to apply for deferment. If you do not do this, repayment will automatically start in April.
If you are eligible to defer, you must complete and return the deferment application form to Erudio Student Loans with evidence of your income or means of financial support.
If you are already making repayments
If you are already repaying your student loan, you can ask Erudio Student Loans for a deferment application form at any time.
The form gives details of the maximum gross income level you can earn if you want to delay paying back your student loan, and simple instructions on how to complete it.
If deferment is accepted, your start and finish dates will be confirmed in writing.
Deferment lasts for 12 months, and you must make a fresh application each year if you wish to continue deferring repayment.
Any remaining arrears (repayments which have fallen due but not been met) after deferment has been accepted, are due for repayment. This means that if you apply late, you may be liable for some repayments.
Documents to supply
When you are submitting an application to defer, you will need to provide evidence of how you are being financially supported. If you don't provide this, your application may not be accepted and you may be liable for repayments. You'll need to send Erudio Student Loans Ltd:
- a deferment application form
- proof of your means of financial support
Further details of which documents you need to give can be found at:
- Getting your deferment application form right (Erudio Student Loans website)
Deferment and repayment arrangements if you have a disability
If you have a disability, there are specific repayment and deferment arrangements. You qualify for these arrangements if you receive disability benefits such as:
- Disability Living Allowance
- Disability Premium
- Disabled Person's Tax Credit
- Short-term Incapacity Benefit at the higher rate
- Long-term Incapacity Benefit
- Industrial Injuries Benefit
- Severe Disablement Allowance
- Severe Disability Premium
These benefits are not taken into account when your gross income is assessed to determine whether you qualify for deferment.
You may be able to extend your repayments over 10 years, if you are unlikely to be fit for full-time work for the following three years. If your gross monthly income for the next 36 months is not likely to exceed the deferment level, the deferment period will be 36 months.