How do I defer a student loan?
If you have an old-style student loan...
Repayment on your student loan can be deferred if your income is below a threshold. For example, the threshold for deferral from 1 September 2016 to 31 August 2017 is £29,126 gross per annum, or £2,427 gross per month.
You can contact the company who is dealing with your loan to defer payments. This will be Erudio Student Loans, Honours Student Loans or Thesis Servicing.
If you qualify for deferment as a result of a change in the repayment threshold, contact the company handling the debt to apply. Interest will continue to be added to the loan balance when it has been deferred.
If the loan is deferred, you won't need to make any payments for the next 12 months.
If you have a new style student loan...
Your loan payment is automatically deferred each year if you're earning below the threshold for that year.
Payments on new style loans start once you cross the threshold, and you won't be able to negotiate lower monthly payments. However, all loans taken out in the UK and Northern Ireland after 1 September 2012 will have any remaining balance written off 30 years after the first repayment was due.
Any balance left to pay on an income-contingent loan taken out before 1 September 2012 will be written off in the following circumstances:
- England, Wales & Northern Ireland – Loans taken out before 1 September 2006 end when you reaches 65. Loans taken out after 1 September 2006 end 25 years after the first repayment was due
- Scotland – Loans taken out before 1 September 2007 end when you reach 65. Loans taken out after 1 September 2007 end 35 years after the first repayment was due