Transferred to SI

Norwegian National Collection Agency (SI) is responsible for collecting terminated student loans.

Terminated loans

  • 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

If you do not pay your student loan and also fail to apply for a deferral, we will eventually terminate your loan.

What does it mean when 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.

Termination of your loan means that the entire debt falls due for payment. 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”. 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. Your loan could be permanently terminated if you do not pay anything and also fail to apply for payment relief for three years.

Please contact us if you receive a letter about permanent termination.

What you can do if your loan is terminated

You should try to resume making regular payments to Lånekassen as soon as possible.

Check to see if you are entitled to payment relief from Lånekassen

Lånekassen has several schemes for people who have difficulty paying. If you have rights with Lånekassen, we may consider withdrawing termination of your loan or reducing the outstanding amount. Read more about the schemes which apply to people who are unable to pay.

Get in touch before your debt is permanently transferred

You will be notified before your debt is permanently transferred to the Norwegian National Collection Agency. It is important that you get in touch if you have received a letter about the permanent transfer of your debt.

Even if you have defaulted on your loan for more than three years, Lånekassen will not transfer your debt permanently to the SI if:

  • you have entered into a payment agreement that you comply with
  • deductions are being made from your salary or social security benefits
  • you have paid a substantial amount over the past year
  • you have provided documentary proof to show that you are entitled to payment relief

Applying for debt settlement with the SI

The Norwegian National Collection Agency (SI) manages debt settlements.

Debt settlement means that you come to an agreement with all your creditors to pay off part of your debt and have the rest deleted. The rules contained in the Norwegian Debt Settlement Act apply as supplementary regulations.

If you wish to apply for debt settlement, please contact the SI.

Collateral

If you fail to comply with your payment obligations to Lånekassen, collateral may be taken in your assets.

The SI can take collateral in property and assets

Once your loan has been terminated, the Norwegian National Collection Agency (SI) may take collateral in assets that you own, including property and money in your bank account.

Deductions may also be made each month from your salary or social security benefits, and you risk being entered as a non-payer in credit records, something that could cause problems for you in respect of obtaining new loans.

Once collateral has been taken, Lånekassen will retain such, even after you have sorted out the payment of your loan.

Assets that have been taken as collateral may be subject to compulsory sales

Loans from Lånekassen are provided without collateral. If you fail to comply with your payment obligations to Lånekassen, collateral may be taken in your assets, e.g. your home. Furthermore, if you fail to pay after collateral has been taken in your home, the SI can call for the compulsory sale of your home and the money from the sale will go towards paying back your student loan. You must also pay any costs involved in such compulsory sales.

If you pay your arrears, the termination of your loan will be revoked and your case will be withdrawn from the SI. However, Lånekassen will retain the collateral regardless of whether or not you have paid off your full loan, until the collateral expires. If you need to have your collateral deleted before such time, please contact the SI.

What you need to look out for if you are going to sell something that has been put up as collatera

If you wish to sell property in which Lånekassen has taken collateral, the profits from the sale must be distributed in accordance with the registered priorities before such collateral can be deleted.

If you are selling property in which collateral has been taken, you must contact the SI for information about the terms and conditions which apply to the deletion of collateral in respect of such sales.

Collateral can be deleted

Lånekassen retains collateral until its expiry date, or until you pay off your full loan. Collateral may also be renewed.

If you have paid your arrears, you can apply for the deletion such collateral. In such instances you must write a letter to the SI stating why you would like the collateral to be deleted.

Appeals

If attachment proceedings have been held and you wish to appeal about any decisions made by the SI in connection with compulsory collection, you must send your appeal to the SI.

If you have any questions about collateral, please contact the SI.

Relevant rules