- You must pay interest on overdue payments on your full loan, instead of ordinary interest.
- The Norwegian National Collection Agency collects loans on behalf of Lånekassen.
- Check to see if you might be entitled to payment relief as early as possible.
When a student loan has been terminated
What does it mean that your loan has been terminated?
When your loan is terminated, the Norwegian National Collection Agency (SI) takes over the work of collecting the money. This can be compared to sending a bill to a debt collection company that collects payment on behalf of the person to whom you owe money.
Once your loan has been terminated, interest on overdue payments will start to accrue on your full debt. You should be aware that terminated debts increase very quickly because interest on overdue payments is added to the full loan, not just on the instalments that you should have paid.
If your loan is transferred to the SI, you risk compulsory collection of your loan.
What is compulsory collection?
Compulsory collection is when the state collects the money you owe when you are unable to refuse to pay. Compulsory collection can, among other things, result in a monthly amount being deducted directly from your salary or social security benefits or collateral being taken in your assets, and could also result in a non-payment record that would cause problems for you in respect of obtaining loans from elsewhere.
Other consequences of terminated loans
Applications for loans and grants will not be approved if your loan has been terminated. In order to obtain a loan and grant for further education, you will need to be up to date with the payments on your student loan.
Your loan could also be what we call “permanently terminated”. Your loan could be permanently terminated if you do not pay anything and also fail to apply for payment relief for three years. If your loan has been permanently terminated, you will lose all your entitlements with Lånekassen and furthermore you will not be able to apply for payment deferral or other payment relief.
Please contact us if you receive a letter about permanent termination.