student loans arrears

AFlegenheimer

Hi, my partner has been told she can no longer defer her loans because she has has arrears for more than 24 months. She took out loans in 1998/99/2000 and has always been entitled to defer. She got into arrears when travelling in 2003 and deferred late so has arrears, which she has been paying back at £10 per month. She has applied to defer again and Honours Student Loans (who own two of her debts) have told her that she is no long entitled to apply for deferment. Are they correct?

rizla_king

If you fail to make repayment under a student loan the loan agreements say that they can demand payment of the full loan right away and you lose any right to deferment. Usually they are willing to use the 'indulgence' clause in the agreements to throw you some slack, but they don't HAVE to, and after 22 months they have clearly thought enough was enough.