1 Interest accrual and the repayment programme
1.1
Interest is calculated from the first turn of the month after the borrower has completed or terminated his/her education, or when the borrower is no longer entitled to financial support under Chapters I and V.
Interest is calculated on previous loans when the borrower is studying part-time. Cf. also item 7.1.1 concerning exemption from paying interest during part-time education.
Interest is calculated when the borrower is studying without receiving financial support. Cf. also item 7 concerning exemption from paying interest during education.
1.2
A repayment programme based on the terms stipulated in items 3 and 4 will be forwarded when the loan becomes eligible for interest.
A borrower who has received a repayment programme and who has subsequently been granted support for other education will receive a new repayment programme for the total debt.
2 Interest terms
2.1
Interest on the loan is payable at the interest rate on government certificates which have from zero to three months until redemption. An additional one per cent per annum is charged to partially cover administrative costs and losses. Lånekassen sets the interest rate each quarter. One quarter elapses between the observation period and the date on which the interest becomes effective. Interest is charged in arrears on the last day of each month.
Interest on the whole loan is charged at one per cent above the ordinary rate from the date the debt was called in.
2.2
The borrower may fix the interest for a period of three or five years. The interest rate is determined according to the interest on government bonds which have three or five years until redemption. An additional one per cent per annum is charged to partially cover administrative costs and losses.
Lånekassen sets the interest rate each quarter. One month elapses between the observation period and the date on which the interest becomes effective. Interest is charged in arrears on the last day of each month.
Interest on the whole loan is charged at one per cent above the ordinary rate from the date the debt was called in.
2.2.1
Borrowers who have entered into an interest-fixing agreement pursuant to item 2.2 must pay in accordance with the agreement. If the agreement is not complied with, i.e. by making extra payments or repaying the loan during the fixed rate period, an early redemption penalty or a discount will be calculated and set off against the loan in Lånekassen.
2.2.2
A fixed interest agreement may not be terminated during the fixed rate period. Nor is it possible to fix the interest on part of the loan.
2.2.3
If the borrower starts full-time or part-time education during the fixed interest period and is granted financial support by Lånekassen, the interest-fixing agreement is regarded as terminated.
2.2.4
Borrowers whose repayment period is shorter than the fixed rate period, borrowers whose loans have not yet become eligible for interest, borrowers whose loan has been called in, borrowers involved in debt negotiations and borrowers under the age of 18 may not enter into agreements to fix the interest rate.
Borrowers who are taking part-time education with financial support from Lånekassen may not enter into any agreement to fix the interest on their previous loan.
2.2.5
If no further agreement to fix the interest has been entered into when the interest-fixing period has expired, the interest on the loan will be charged according to the rules in item 2.1.
2.2.6
Applications to fix the interest must be received by Lånekassen no later than the 10th in the month from which the interest offer applies.
2.3
Compound interest will be charged at the current interest rate. In 2005 all unpaid interest becomes eligible for interest on 15 May and 15 November. For borrowers with loans dating from before 1 July 1985, no interest will be calculated on unpaid interest accumulated before 1 January 1990.
3 Repayment period
3.1
The longest repayment period is 20 years from the date the loan became eligible for interest. Loans in excess of NOK 194,000 will normally have a repayment period of 20 years. Cf. item 3.3.
3.2
The loan must be repaid by the time the borrower reaches the age of 65. For borrowers over 45 years the longest repayment period may be shorter than 20 years. In such cases the size of the instalments may be adjusted upwards.
3.3
When deferred payments have been granted, the repayment period will normally be extended. The repayment period cannot be extended to more than 30 years. Cf. also items 3.2 and 9.4.
3.4
A borrower who has loan without fixed interest may repay or reduce the debt faster and pay larger amounts than those stipulated in the repayment plan at no extra cost. Specific rules apply to loans with fixed interest, cf. item 2.2.1.
Extra payments may only be reimbursed in special cases.
4 Instalments
4.1
The instalments are determined according to the annuity principle, which ensures that the loan is repaid within the stipulated period. The smallest instalment is NOK 2,610.
4.2
In special cases Lånekassen may deviate from the rules governing the stipulation of instalments.
4.3
The instalments may be reduced or increased in keeping with any changes in the interest rate.
5 Due date, reminders, call-in notice and fees
5.1
The first due date for payment of the first instalment is normally set at seven months after the education has either been completed or terminated, or when the borrower no longer receives support. This also applies in the event of a new repayment plan as described under item 1.2.
5.2
In 2005 payments fall due on 15 February, 15 May, 15 August and 15 November.
5.3
The instalment must be paid even if the borrower has not received a demand for payment.
The borrower is obliged to report any change of address to Lånekassen or to the Population Registry. Borrowers living abroad must notify Lånekassen directly of any change of address.
5.4
Borrower must pay a charge of NOK 35 for reminders of due payments.
5.5
Borrowers who fail to pay on the due date will be sent a second reminder with a charge of NOK 280 added.
5.6
Should the borrower fail to pay after the second reminder, he/she will be notified that the entire debt is to be called in. A charge of NOK 490 is added to the notification of calling in. Cf. also items 2.1 and 2.2.
5.7
Payment covers costs in the following sequence: debt collection costs, charges, interest, and the amount borrowed.
5.8
If the borrower has failed to provide sufficient information on the payment slip for the payment to be registered as having been made by the borrower, the borrower is obliged to pay charges as stated in items 5.5 and 5.6.
5.9
Costs related to paying the debt are charged to the borrower. Lånekassen is entitled to add the charges to the borrower's account.
6 Exemption from paying interest
6.1
Exemption from paying interest is granted for whole months.
6.2
Exemption from paying interest is granted in arrears.
6.3
Claims for exemption from paying interest applying to matters before 1 January 2002 are time limited. Exceptions from this deadline may be granted if specific circumstances prevent the application deadline from being met.
7 Exemption from paying interest while studying
7.1
Borrowers who have completed full-time education and document their entitlement to financial support under Chapter I and Chapter V are also entitled to exemption from paying interest for the period support can be given.
A borrower who is studying without having applied for financial support must apply for exemption from paying interest by the deadline stated in item 6.3.
7.1.1
Borrowers who have completed part-time education and document their entitlement to support under Chapter I are also entitled to exemption from paying interest if they have a gross monthly income of NOK 13,850 or less. The limit is increased by NOK 1,385 for each child under 16 for whom the borrower provides.
The borrower must apply to be exempt from paying interest within the time limit stipulated in item 6.3.
8 Exemption from paying interest on social and economic grounds
8.1
Both the cause and the income must be documented for the period for which exemption from paying interest is sought.
8.2
Exemption from paying interest may be granted when a borrower has a gross monthly income of NOK 13,850 or less. The amount is increased by NOK 1,385 for each child under 16 for whom the borrower provides. One of the requirements in items 8.2.1 – 8.2.6 must also be met:
8.2.1
The borrower is doing his military service or civilian service in Norway for at least three consecutive months. The same applies to a borrower who is enrolled at a military academy. Citizens from EU/EEA may be granted exemption from paying interest while doing their military service in their own home country.
8.2.2
The borrower can document illness, medical rehabilitation, occupational rehabilitation, time-limited disablement pension or registered unemployment lasting at least three consecutive months.
8.2.3
The borrower can document a birth and the maternity leave following a birth. Exemption from paying interest may be granted for up to 12 months after birth to the parent caring for the child. The same rules apply when adopting children under 10 for up to 12 months from the date of adoption. The exemption from paying interest may be shared between the parents during periods when they share the childcare.
8.2.4
The borrower has a full-time honorary office for a national pupil or student organisation, or is affiliated to an educational institution or a student service organisation. The term of office must last for at least three consecutive months. Exemption from paying interest may be granted for up to 12 months.
8.2.5
The borrower is participating in a Leonardo da Vinci or Socrates programme lasting at least three consecutive months. This also applies to borrowers who are on leave of absence from the course of study and are paid a study grant.
8.2.6
The borrower is providing care for someone for at least three consecutive months. This includes care for children under 10 or caring for a disabled or handicapped person or an elderly person in the immediate family who needs constant care and attention. Cf. also item 8.6.
8.3
From 1 January 2002 exemption from paying interest may be granted to a borrower who can document that he/she has had no other financial support than that which is determined by Section 5-1 of the Social Welfare Act. Exemption from paying interest pursuant to this item may be granted for up to three years in total.
8.4
A borrower who can document having worked full time for 12 consecutive months or longer is entitled to be exempt from paying interest when his/her gross average monthly income is NOK 9,850 or less during this period. The amount is increased by NOK 1,385 for each child under 16 for whom the borrower provides. Cf. also item 8.6. Exemption from paying interest pursuant to this item may be granted for up to three years in total.
8.5
A borrower who can document having served a prison sentence or having been in preventive detention for 12 consecutive months or longer is entitled to be exempt from paying interest when his/her average gross monthly income is NOK 9,850 or less during that period. The amount is increased by NOK 1,385 for each child under 16 for whom the borrower provides. Cf. also item 8.6.
8.6
Exemption from paying interest pursuant to items 8.2.6, 8.4 and 8.5 are considered in relation to income earned by any spouse, partner or cohabitant. This income must be documented. Exemption from paying interest is only granted to those whose own income falls under the limit. It is a condition that the total gross monthly income is less than NOK 27,700. The limit is increased by NOK 2,770 for each child under 16 for whom the borrower provides. Chapter I, item 2.1 contains a definition of the term "cohabitant".
9 Deferment of payment
9.1
The borrower may apply for a deferment of payment of the entire instalment for up to three years. Cf. also items 3.2, 3.3 and 9.4 and Chapter I, item 15.2.
Deferments may also be granted for half the instalment. In that event the borrower is granted a deferment for up to six years.
9.2
As an exception, a deferment may be granted for one instalment, making it possible to pay two instalments in one on the next due date.
9.3
A borrower who meets the requirements for exemption from paying interest may be entitled to defer payment of the instalment during the same period. Cf. also items 3.2 and 3.3.
9.4
Deferment of payments cannot be granted if this leads to future instalments becoming 1.5 times larger than the original instalment. Cf. items 3.2 and 3.3.
10 Cancellation
10.1
If the borrower becomes at least 50 per cent disabled and receives a lasting disablement pension from the National Insurance Fund or a similar pension scheme in a foreign country, the borrower is entitled to full cancellation of debt if his/her gross monthly income is NOK 13,850 or less. If the gross income is between 13,850 and NOK 20,900, the borrower is entitled to a partial cancellation of the debt and a reduction of the instalment. These limits are increased by NOK 1,385 for each child under 16 for whom the borrower provides.
If the borrower has a gross monthly income of NOK 13,851 or more, the debt is cancelled according to the following scale:
| Gross monthly income |
New debt |
New instalment |
| NOK 13,851-15,600 |
NOK 40,000 |
NOK 1,280 |
| NOK 15,601-17,300 |
NOK 46,700 |
NOK 1,540 |
| NOK 17,301-19,100 |
NOK 53,400 |
NOK 1,820 |
| NOK 19,101-20,900 |
NOK 60,100 |
NOK 2,070 |
All income and pension payments must be documented, and a birth certificate must be provided for all children under 16 for whom the borrower provides.
10.1.1
If the borrower has been completely unfit for work for at least six years due to illness, this may give grounds for cancellation and reduction according to the same income limits as those outlined in item 10.1. Illness, income and the borrower's disability must be documented. It is a condition that the borrower has not been in medical rehabilitation or occupational rehabilitation throughout the period.
10.1.2
If the borrower is granted new financial support, the decision to cancel the debt will be revoked. If the decision was made more than 10 years ago, it will not be revoked. Cf. chapter I, item 9.2.
10.1.3
Lånekassen can refuse to cancel financial support wrongfully obtained by the borrower.
10.2
If the borrower receives an old age pension from the Norwegian National Insurance Fund or from a similar scheme in a foreign country, the debt may in some circumstances be completely or partially cancelled.
The fact that the borrower has reached the age of 65 or has been paying for 20 years is in itself insufficient reason for cancellation of the debt.
10.3
The debt is cancelled if the borrower dies.
11 Default on the loan
11.1
If the borrower defaults on the loan, Lånekassen will require that the State Agency for the Recovery of Fines, Damages and Costs and/or the ordinary execution and enforcement officer initiate attachment proceedings. Attachment may be made in salary or similar income, immovable and/or movable property under the rules of the Enforcement Act, the Satisfaction of Claims Act and other Norwegian legislation.
If the borrower lives abroad, Lånekassen may collect the debt where the borrower lives. Lånekassen may use debt collection agencies, lawyers and/or the courts.
11.1.1
Lånekassen is entitled to retain the collateral until the debt is repaid.
11.1.2
Lånekassen charges the costs of collecting the debt to the borrower.
11.2
Default on a loan is regarded as serious and/or continuous defaulted when three years have passed since it was called in. The claim is then permanently transferred to the State Agency for the Recovery of Fines, Damages and Costs, cf. Chapter X, and the borrower loses his/her entitlement to a reduction in repayments and cancellation under the regulations relating to Lånekassen. Lånekassen may make exceptions from the regulation relating to such transfer when:
-
the borrower has a current voluntary repayment scheme
-
the borrower has a current compulsory repayment scheme
-
the borrower has repaid a significant amount over the past 12 months
-
Lånekassen, due to special circumstances, finds it reasonable to exempt the loan from being transferred.
If the borrower has been granted reduced repayments over the past few years, the debt will be regarded as being seriously and continuously in default when the total period after call-in for which the borrower has no documented right to receive reduced payments exceeds three years.
11.3
Default on payment obligations can result in rejection of applications for financial support for new courses of education and rejection of application for repayment relief and cancellation, cf. Chapter I, item 15.2.
11.4
If the borrower has received financial support to which he/she was not entitled, the entire loan may become interest bearing from the time the borrower was awarded support. The entire debt may be called in. Such wrongfully obtained support could result in rejection of application for reduced repayments/ cancellation. Cf. also Chapter I, item 15.1.
12 Educational debts and the Debt Settlement Act
12.1
Educational debts are covered by the terms in the Act relating to voluntary and compulsory debt settlement for private persons (the Debt Settlement Act) of 17 July 1992.
Lånekassen can enter into negotiations about debt rescheduling under this Act when the court of execution and enforcement has initiated debt negotiations. Cf. also item 13.1.
12.2
At the opening of the debt negotiations the borrower is entitled to deferment of payment pursuant to Section 3-4 of the Debt Settlement Act.
12.3
If the borrower achieves a voluntary debt settlement after the debt negotiations or a court decision regarding a compulsory debt arrangement, the terms of payment shall be determined in accordance with this. If a debt arrangement is rejected, the borrower will be treated according to the general rules.
12.4
As a main rule, the borrower will not be able to take up a new loan and/or a grant during the debt negotiation period and the debt settlement period.
12.5
After a debt settlement period pursuant to the Debt Settlement Act has been completed in accordance with an agreed voluntary debt settlement or court order for a compulsory debt settlement, the remaining debt shall be completely or partially cancelled in accordance with the settlement.
13 Extrajudicial debt settlements and cancellation of debts that cannot be recovered
13.1
Lånekassen can in special cases participate in debt settlements outside the Debt Settlement Act (extrajudicial debt settlement). A request for debt settlement outside the Debt Settlement Act is regarded as having been submitted when the debtor or his assistant has forwarded a well-founded proposal to Lånekassen. The request shall contain information about income, assets, debts, the number of children and the regular outgoings of the debtor, along with corresponding information relating to his/her spouse or cohabitant, plus any other details that may be of importance to the case. The rules of the Debt Settlement Act apply as a supplementary set of regulations.
13.2
Within the debt settlement period consideration shall be given to likely changes, such as changes to debts, income, education and duties of care. It shall also be taken into consideration whether the debtor is unfit for work or suffers from a permanent illness, or if any other circumstances exist that are likely to influence his/her ability to pay.
13.3
During the debt negotiating period and the debt settlement period the borrower shall as a main rule not be able to obtain a new loan and/or grant.
13.4
After an extrajudicial debt settlement period has been completed in accordance with the agreed debt settlement, the remaining debt can be cancelled either completely or partially.
13.5
Loan, interest and costs may be cancelled to the extent it is impossible to recover the debt.
A request for cancellation of all or parts of the claim will be regarded as presented when the debtor or his/her assistant has presented a well-founded proposal to Lånekassen. The request shall contain information about income, assets, debts, the number of children and the regular outgoings of the debtor, along with corresponding information relating to his/her spouse or cohabitant, plus any other details that may be of importance to the case.
When assessing the application, Lånekassen shall give particular consideration to the financial circumstances of the debtor, whether his/her ability to pay is impaired or for how long the default has lasted. Consideration shall also be given to the remedial measures that have been initiated during the debt collection case and to the measures that will be most appropriate for debt collection in the future. The customer shall not be granted debt cancellation if this could appear unfair to those who repay their debts.
13.6
Decisions in cases regarding extrajudicial debt settlement and cancellation of debts are not included in the right to appeal under the rules of the Public Administration Act.