Education loan deferment limit to fall: Q&A on why it is happening

Education loan deferment limit to fall: Q&A on why it is happening

It absolutely was established this that the deferral threshold for pre-1998 student loans will drop from September, meaning more graduates will have to start paying week. But we have been contacted by numerous loan holders currently annoyed after issues with the purchase of loans to Erudio, whom question whether it has been done to appease the company that bought a few of the education loan financial obligation.

At the moment, anyone with a pre-1998 mortgage-style loan earning Ј28,775 or less can defer repaying their loan for per year – this is certainly referred to as deferment.

But the Department for Business, Innovation and Skills (BIS) announced that from 1 September only those who earn Ј26,727 or less will be able to defer www.speedyloan.net/installment-loans-ne paying theirs, meaning fewer people will qualify from autumn (see the Student loan interest rates to fall MSE News story) yesterday.

Therefore we’ve assembled a Q&A below to resolve a number of your key questions.

What is taking place?

From 1 September 2014 until 30 August 2015 just those that make Ј26,727 or less should be able to defer repaying their pre-1998 loan for the 12 months.

Since this educational 12 months’s limit is Ј28,775 it indicates anyone making between Ј26,728 and Ј28,776 who’s got presently deferred their loan, will not qualify to do this from September.

My loan happens to be deferred. What can I do?

The news headlines does not impact anybody’s current deferral period – this can continue as normal until the end date that is agreed. Continue reading “Education loan deferment limit to fall: Q&A on why it is happening”