Frequently Asked Questions

> Why have I received a Notice of Sums in Arrears?
> I have received a Notice of Sums in Arrears but, I think I may be eligible to apply for deferment. What should I do?
> I have received a Notice of Sums in Arrears but I am experiencing financial difficulties. What should I do?
> Why have I received a Notice of Default Sums?
> Why has Honours Student Loans debited an administration charge to my account?
> I have returned my deferment application form to the Student Loans Company. Why is Honours Student Loans still collecting direct debit payments from my bank account?
> I have received a Notice of Sums in Arrears but I am currently serving a prison sentence. What should I do?
> I have received a Notice of Sums in Arrears at my address which is addressed to someone who does not live here. What should I do?
> I have received a Notice of Sums in Arrears but Honours Student Loans has already referred my account to a debt collection agency. What should I do?
> I wish to apply for deferment on behalf of a student loan borrower who is travelling abroad. What do I need to do?
> I am unable to work due to illness. What do I need to do next?
> I think that I may be eligible for my loans to be cancelled due to my age. What do I need to do?
> I am currently serving a custodial sentence in prison. What information do you need from me?
> I am still a full-time student. What do I need to do?
> I am having problems repaying my loans. Who do I need to contact?
> Why have I received a Notice of Intent to Register a Default Notice?

Why have I received a Notice of Sums in Arrears?

The Consumer Credit Act 2006 requires us to send our borrowers an initial First Notice of Sums in Arrears when there is a shortfall in repayments which is equal to two months repayments. For so long as you continue to be behind with your payments by any amount, you will be sent notices about this at least every six months.

We are not required to send you notices more frequently than this, even if you get further behind with your payments in between notices.

If you have received such a notice and you would like to discuss it with us, please telephone us on 0844 826 7836.

I have received a Notice of Sums in Arrears, but I think I may be eligible to apply for deferment. What should I do?

We are obliged to send notices of sums in arrears to borrowers who are in arrears. Borrowers who earn below the annual deferment income threshold should ensure that they apply for deferment of their student loan repayments.

If you are eligible to apply for deferment but you have not already done so, please contact us as soon as possible to obtain a deferment application form. Please note that the deferment of your loans can only be backdated by up to three months.

You may be at risk of losing your right to apply for deferment of your loan repayments if you do not maintain your monthly repayments when there is no deferment in place.

If your loans are currently deferred but you have outstanding arrears, please telephone Honours Student Loans on 0844 826 7836 to discuss your repayment options with us.

I have received a Notice of Sums in Arrears but I am experiencing financial difficulties. What should I do?

If you have received a notice of sums in arrears when we have already agreed to accept reduced payments from you on a temporary basis, please continue to keep up your agreed repayments to us. We are legally required to send you a Notice of Sums in Arrears when you fall behind with your loan repayments but we send this for information purposes only. It will not affect any pre-arranged repayment agreement that you have made with Honours Student Loans.

Why have I received a Notice of Default Sums?

The Consumer Credit Act 2006 requires us to send a Notice of Default Sums to borrowers who have defaulted on their student loan by missing loan repayments and not made arrangements with us to clear their loan arrears. If you have received such a Notice, please contact us as soon as possible to discuss ways of bringing your payments up to date.

Why has Honours Student Loans debited an administration charge to my account?

If your account is in arrears

Honours Student Loans will write to you if you are behind with your loan repayments. We will ask you to get in touch with us to make suitable repayment arrangements to clear any arrears, and tell you about any administration charges that may be debited to your account if you do not bring your account up to date.

If for any reason we still find it necessary to debit an administration fee to your account, we will send another letter to confirm the details of this to you.

If we have to find you at a new address

If you do not tell us when you change your contact details, in certain circumstances we may debit your account with an administration charge. This is to cover any costs associated with work we have undertaken to locate your whereabouts.

Please refer to the terms and conditions of your student loans for information on such charges. If you have been charged but you are unsure why, please contact us to discuss the matter with us further.

I have returned my deferment application form to the Student Loans Company. Why is Honours Student Loans still collecting direct debit payments from my bank account?

There could be a number of reasons for this:

Have you remembered to complete a deferment application form for your loans? Deferment is not an automatic process. The Student Loans Company is only able to grant deferment of student loans upon receipt of a completed deferment form which has been signed and dated and is accompanied by the appropriate supporting documents.

Did you submit a late application for deferment to the Student Loans Company? Your loan repayments will recommence the day after any existing deferment expires. If you submit a late deferment application form to the Student Loans Company, you are liable for repayment of your loans until it has granted deferment of your loans. This may result in Honours Student Loans collecting Direct Debit repayments from you in the interim. Deferment can only be backdated by up to a maximum of three months, so if you submit your deferment application form the Student Loans Company more than 3 months late, you will be liable for any repayments that subsequently become due.

Did you send your deferment application form to the Student Loans Company? The Student Loans Company remains responsible for the deferment process, so you must return your signed and dated deferment application form to it along with the appropriate supporting documentation. If you are unsure whether your supporting evidence is sufficient, please contact either Honours Student Loans or the Student Loans Company for advice.

Have you provided each of your loan reference numbers on your deferment application form?

Have you received a letter from the Student Loans Company confirming that your application for deferment has been granted? If not, we strongly recommend that you contact the Student Loans Company to enquire about the status of your deferment application.

I have received a Notice of Sums in Arrears but I am currently serving a prison sentence. What should I do?

We are legally required to send you a Notice of Sums in Arrears when you fall behind with your loan repayments. If you are currently serving a prison sentence, we will not expect you to make repayments to your loan until your sentence has ended. Please let us know about your circumstances as soon as possible so we can deal with your account appropriately as you may be eligible to annually defer your loan repayments. Refer to 'I am currently serving a custodial sentence'.

I have received a Notice of Sums in Arrears at my address which is addressed to someone who does not live here. What should I do?

We are legally obliged to send a Notice of Sums in Arrears to borrowers who are behind with their loan repayments. In circumstances where we are attempting to establish a borrower's whereabouts, the Consumer Credit Act 2006 requires us to send such notices to their last known address - even if we have been informed that the borrower no longer lives there.

If you have received a Notice of Sums in Arrears at your address which is intended for someone who does not live there, please return it to us at the following address:

Honours Student Loans
Selectapost 30
Rotherham
S97 3ZY

I have received a Notice of Sums in Arrears, but Honours Student Loans has already referred my account to a debt collection agency. What should I do?

We are legally obliged to send a Notice of Sums in Arrears to borrowers who are behind with their loan repayments. It is sent for information purposes only. Any repayment arrangement that you have with the debt collection agency we referred your account to will not be affected by you receiving this Notice from us. You should continue to direct any questions or queries to the debt collection agency that is currently handling your account.

I wish to apply for deferment on behalf of a student loan borrower who is travelling abroad. What do I need to do?

Customers who wish to nominate someone to submit a deferment application on their behalf must first provide a letter of consent or Power of Attorney to the Student Loans Company and Honours Student Loans. This must clearly state who their nominated representative is. If the customer wishes their representative to be allowed to deal with their account in general (in addition to deferment), they must specify this when providing their consent.
Representatives of the customer must provide:
A letter of consent / Power of Attorney from the customer giving authority for their nominated representative to act on their behalf.
A letter confirming that the student loan customer is travelling overseas.
Confirmation of the customers means of support while travelling (eg, savings).

I am unable to work due to illness. What do I need to do next?

If you are unable to work due to illness, we may be able to help by arranging a long-term deferment or cancellation of your student loans. Please see the information below for advice on what information we must receive from you in order to consider your circumstances. If you are unsure what to send to us, please telephone us on 0844 826 7836.

The above categories were established by Parliament under section 12 of the Student Loan Regulations. Honours Student Loans is unable to consider a borrower's application for a long-term deferment or cancellation of their loans on the grounds of disability unless they provide the exact information as shown above.

Please note that your doctor may charge you for providing such information. Honours Student Loans is unable to request this information on your behalf from your doctor.

I think that I may be eligible for my loans to be cancelled due to my age. What do I need to do?

If you were under the age of 40 when you took out the last of your student loans, and your earnings have never reached the threshold required to begin repayment of your loans, Honours Student Loans will automatically cancel your loans when you reach the age of 50. This is dependent on your loans having no arrears at the time of cancellation.
If you were over the age of 40 when you took out the last of your student loans, and your earnings have never reached the threshold required to begin repayment of your loans, Honours Student Loans will automatically cancel your loans when you reach the age of 60. This is dependent on your loans having no arrears at the time of cancellation.

I am currently serving a custodial sentence in prison. What information do you need from me?

The name of the prison at which you are serving your sentence.
Your prison number.
The length of your sentence and your expected release date.
A letter from the prison authority confirming the above information.
You should still continue to submit annual deferment application forms to the Student Loans Company. You should return your signed and dated form to the Student Loans Company together with the information shown above. If your application to defer your loans is granted, the Student Loans Company will write back to you to confirm the dates of your deferment period.

I am still a full-time student. What do I need to do?

If you are still in full time education you will need to provide your Student Support Number for the current academic year to the Student Loans Company when you return your completed deferment application forms to them.

I am having problems repaying my loans. Who do I need to contact?

If you are having trouble repaying your loans and you have fallen behind with your repayments, please telephone us on 0844 826 7836. If you are eligible to apply for the annual deferment of your loans, please ask us for a deferment application form to complete. If the Student Loans Company is able to grant deferment of your loans for 12 months, this will prevent your loans falling further into arrears.

WE STRONGLY RECOMMEND THAT YOU APPLY FOR DEFERMENT OF YOUR LOANS IF YOU ARE ELIGIBLE TO DO SO. PLEASE CONTACT US TO OBTAIN A DEFERMENT APPLICATION FORM.

Why have I received a Notice of Intent to Register a Default Notice?

From April 2009, HSL and the SLC will start registering borrower information with all three major Credit Reference Agencies: Equifax, Experian and Call Credit. HSL intend to pass information on to these agencies regarding your current payment history with us, which may affect your ability to obtain further credit, such as a credit card or mortgage.

What will you register on my file?

HSL will record a default if you are more than 5 months in arrears, and you have not made (or have made and subsequently broken) a payment arrangement. This will remain on your credit file for six years from the date of default.

We will not register details of your account if it is one or two months in arrears unless you enter an Individual Voluntary Arrangement

What happens when I settle my loan?

The default will be shown as settled, but will remain on your file for six years from the date of default.

What can I do to prevent my details being registered?

You can either:

Continue with your current payment arrangement if you have one (subject to an increase in the payment amount at your next review).
If you do not have a payment arrangement in place, contact HSL on 0844 8267836 to agree a repayment plan.
Make an immediate payment for the full arrears and continue to pay your monthly instalment amount.

If you agree to make a payment arrangement with HSL, your first payment must be received within 28 days to prevent the default from being registered.

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