Options for Past due or soon to mature Loans
The Amnesty and Interest Relief offers are available options for the full repayment of loans with large arrears. This category of borrower along with his/her sureties is asked to contact a Credit Officer about the terms of these offers which are subject to Management Approval.
Amnesty – is applicable where the stipulated repayment period has expired, but to date the loan still has an outstanding account balance that is due and payable.
Interest Relief – is applicable where a loan is in arrears and is still within the stipulated repayment period, but the beneficiary is desirous of closing the loan within the short term.
Options for Recent Defaulters
Deferments, Graduated Payment plans and Forbearance are available to those persons who are experiencing difficulty making monthly loan payments. They are as follows:
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Deferment allows persons who are not in default and who provide credible evidence of further study, economic hardship or unemployment will be allowed for a specified period to pay the interest only part of their monthly instalment. Persons in arrears are not eligible for a deferment.
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Forbearance allows you to pay the principal part of the loan instalment for a short period if you are unable to make regular/full loan payments. This type borrower is ineligible for a deferment because their account is in arrears.
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Graduated payment plans allow you to pay a lower monthly instalment for a specified period. Subsequent incremental increases thereafter ensure the repayment of your loan within the payback period. These plans are review on a quarterly or semi-annual basis.
The Credit Officers will work with each borrower to determine the best option available to them.
In-house Arrears Procedure
The Fund will initiate its 90 day arrears procedure against those borrowers whose loans are in arrears and who have not negotiating a repayment option with the Fund.
The First Letter – This is a twenty-one (21) day letter issued if your monthly payment is not received by the end of the month. It is a reminder that your payment is late.
The Second Letter – This is a fourteen (14) day letter issued if your account remains delinquent, we will send you warning notices reminding you and your sureties of your obligation to repay your student loan and the consequences of default.
The Third Letter – This is a fourteen (14) day letter issued if your account remains delinquent, we will send you and your sureties warning notices reminding of your contractual obligation to repay the student loan and the consequences of default.
Consequences of default
If you fail to pay as stipulated by the three (3) warning letters, the Fund has the following options:
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The Fund will require you to immediately repay the entire unpaid amount of your loan.
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The Fund may sue you and your sureties.
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The Fund will require you to pay reasonable collections fees and costs plus court costs and attorney fees.
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You will lose eligibility for loan deferments.
Disability or Death
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Evidence certifying that you are permanently disabled or medically unfit for work must be submitted along with a claim to our insurers. This must be done within three (3) months after medical certification. The insurance company will pay your loan instalment up to a maximum of six (6) months in the event of a short term disability and will pay out the full loan amount for those deemed medically unfit to resume work.
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A death certificate and registration of death must be submitted by a family member and/or other representative to confirm the borrowers’ death. This must be done within three (3) months of the death.