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Deferring your loan repayments


What is deferment?

Deferment is the process of postponing your Mortgage Style student loan repayments for a period of 12 months.

If you have a Mortgage Style Loan and you have a gross monthly income of £2,398 or less (equivalent to £28,775 per year) you may be eligible to apply for deferment.

How to apply for deferment

In order to defer your repayments you need to complete and return an application form and provide proof of your gross income or means of financial support. Only your income is taken into account - you do not need to provide income details of your spouse, partner, parents or any other relatives.

Your gross income is the amount you earn before any deductions (such as Income Tax or National Insurance) are taken from your pay.

For advice on deferring your student loan repayments or to ask for an application form, please contact us on 0300 100 0610.

You will need to continue to make repayments until you receive confirmation in writing from us that your deferment has been accepted. If you pay by Direct Debit we will suspend it automatically.

Evidence required for deferment

You will need to provide proof of your income or means of financial support as part of your deferment application.

If you are employed

You will need to supply one of the following:

  • wage slips confirming your gross income for the last three calendar months - handwritten slips are not acceptable;
  • signed and dated letter from your employer on company headed paper confirming your gross monthly income for each of the last three calendar months including overtime, bonuses, allowances, London weighting etc;
  • offer of employment or copy of contract dated within the last two months, together with your most up to date wage slip; or
  • if you are working for a temp agency, ask them to give you a printout of a P11 form showing their company name, your name and your gross earnings.

If you are self-employed

You will need to supply one of the following:

  • tax assessment - the end of year assessment that you send to HM Revenue & Customs;
  • profit and loss accounts;
  • latest statement of business accounts;
  • form SC60 / CIS25; or
  • enterprise allowance or accountant's letter.

If you are living on unearned income

You will need to supply one of the following:

  • if you are being financially supported by a third party, for example, a parent, spouse or partner, a letter from this person confirming that the level of support is less than the current deferment threshold;
  • a grant award letter for the current academic year, or an ESPCR letter for your current course together with a letter from your college confirming attendance;
  • a copy of your loan agreement if you have borrowed money to live on;
  • a copy of your maintenance agreement or letter from person making payments;
  • a copy of your letting agreement or letter from tenant confirming frequency of payments and amount paid;
  • bank statements showing your balance and overdraft facility, along with a letter from you confirming that this is your only means of support; or
  • confirmation of income received from investments.

If you are travelling

You must supply a copy of your travel itinerary.

Plus one of the following pieces of evidence in support:

  • proof of savings, such as a bank statement;
  • proof of overdraft, such as a bank statement;
  • a letter from a parent, spouse or partner confirming that they support you and that the level of support is less than the current deferment threshold; or
  • a deferment application form signed by a third party who has your authority to manage your account and confirmation that you are travelling.

The section Third Parties contains information about how to give someone authority to manage your account on your behalf.

If you are in receipt of benefits

You will need to supply one of the following:

  • Benefits Agency stamp on your deferment application form;
  • a copy of your current benefit agency book confirming your name, address, date and amount of benefit received; or
  • Benefits Agency letter confirming your name, date, type and amount of benefit received.

If you are a student

If you have returned to higher education and are in receipt of student finance, you will need to supply your Student Support Number.

This appears on your student finance correspondence, for the current academic year - the first instalment of your loan must already have been paid to be classed as income.

If you are in prison

If you are serving a custodial sentence, a letter from your prison authority is required.

Once your repayments have been deferred

Your repayments will be deferred for a period of 12 months. During this time you will continue to be charged interest on your outstanding balance.

We will write to you just before your deferment period is due to end to inform you of when your repayments are due to start again and how much they will be. You will also be given the opportunity to apply for a further 12 months deferment at that time.

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