Regulations regarding repayment of educational loans, 2018

Transcription

1 Regulations regarding repayment of educational loans, 2018 Established by the Ministry of Education and Research on 19 December 2017 pursuant to the Act of 3 June 2005, no. 37 on educational support (the Educational Support Act), sections 8, 9, 10, 14 and 15. Part 1. Interest and repayment Chapter 1. Introductory provisions Section 1-1. Area of application The regulations applies to repayment of educational loans provided pursuant to the Educational Support Act and the regulations on allocation of educational support. The regulations provide rules on - interest and repayment - deferment of payment and interest exemption - clearing of debt - debt defaulted on which is transferred permanently to the Norwegian National Collection Agency - loss of rights Section 1-2. Personal debt and clearing of debt when the borrower dies The education debt is a personal debt and cannot be transferred to others. If the borrower dies, the debt is cleared. Section 1-3. The borrower is obligated to provide information The borrower is obliged to provide complete and correct information and must provide notification if any of the information referred to in the application has changed. The borrower must report any change of address to the Norwegian State Educational Loan Fund or the National Population Register as soon as possible after moving. Borrowers who are domiciled abroad must report any change of address directly to the Norwegian State Educational Loan Fund. Chapter 2. Interest Section 2-1. When interest is added to the educational loan The educational loan is interest-free while the study programme is in progress. Interest is added from the first month-end after the borrower is no longer receiving a loan or grant in accordance with the regulations on educational support. When the borrower receives a loan or grant for part-time education, interest will be added to the debt from the previous study programme. Interest is added to grant amounts that are converted to loans from the date of the conversion, following means testing in accordance with the regulations on educational 1

2 support. However, interest is not added until the loan is seen as interest-bearing in accordance with section 2-1, first paragraph. Section 2-2. Variable and fixed interest Loans from the Norwegian State Educational Loan Fund have variable interest unless the borrower enters into a fixed interest agreement.. The Norwegian State Educational Loan Fund offers fixed interest for periods of three, five or ten years every other month. Section 2-3. Interest in the event of late payment Interest on the overdue amount is calculated in accordance with the Act relating to interest on overdue payments from the day after the payment deadline, and on the entire loan from the date on which the loan has been terminated due to a breach of contract. Section 2-4. Calculation of interest The interest rates for the Norwegian State Educational Loan Fund are based on a basic interest rate established by the Financial Supervisory Authority of Norway in compliance with the regulations on completion and implementation, etc. of the Taxation Act of 26 March 1999, no. 14, section The basic interest rate is established on the basis of a selection of prices on mortgages from Finansportalen throughout an observation period. The basic interest rate is equal to the average of the five lowest mortgage prices for each observation time during the observation period. The observation periods start at the beginning of the year. A variable basic interest rate is established on the basis of two months' observation of variable-interest mortgage offerings. A new variable interest rate will take effect two months after the conclusion of the observation period. A fixed basic interest rate is established on the basis of one month's observation of mortgage offerings with the same fixed rate period as in the agreement on fixed interest on the educational loan. A new fixed interest rate will take effect one month after conclusion of the observation period. The Norwegian State Educational Loan Fund establishes the nominal interest rates on the borrower's loan. These are calculated on the basis of the basic interest rate minus 0.15 percentage points. The formula for calculating the nominal interest rate is as follows: Legend rn re n annual nominal interest rate, expressed as a percentage basic interest rate minus 0.15 percentage points (annual effective interest rate expressed as a percentage before fees) twelve, which is the number of payment periods per year When the effective interest rate is to be calculated, fees in the event of notification and for late payment, and fees and costs with regards to debt recovery will also be payable, see Chapter 4. 2

3 The nominal and effective interest rates are specified to three decimal places. Interest is applied in arrears with a nominal period interest rate which corresponds to the annual interest rate divided by 365 or 366 days. Interest will be calculated on interest that has not been paid after each overdue quarter. Interest will also be calculated on interest that is added to the debt in the period from the time the loan becomes interest-bearing and up to the first due date, and in periods with deferment of payment. For borrowers who have loans dating back to before 1 July 1985, no interest is calculated on interest debt accrued prior to 1 January No interest is calculated on interest added due to late payment, see section 2-3. Section 2-5. Fixed interest rate agreement The borrower can apply for a fixed interest rate on the loan for a period of three, five or ten years. There is no option to fix the interest rate on just part of the loan. The table shows the periods in which the borrower can apply for a fixed interest rate, and the date from which the interest rate is applicable: Application period Interest rate applicable from February 1 March April 1 May June 1 July August 1 September October 1 November December 1 January Section 2-6. Exceptions to the right to conclude a fixed interest rate agreement These borrowers cannot conclude fixed interest rate agreements: a) borrowers who are under 18 b) borrowers who have a shorter repayment term than the agreement term c) borrowers who receive a loan or grant for full-time education d) borrowers in part-time education who receive a loan or grant from the Norwegian State Educational Loan Fund and have an interest-bearing loan from a previous study programme e) borrowers with cancelled loans f) borrowers who are in debt Borrowers who have cancelled the fixed interest rate agreement before the end of the fixed period cannot conclude a new fixed interest rate agreement for two months following the cancellation. Section 2-7. Calculation of interest rate loss or interest rate gain Interest rate loss or interest rate gain is calculated when a) additional payments are made, see section 2-8 b) the fixed interest rate agreement is cancelled, see section 2-9 c) the fixed interest rate agreement is annulled, see section

4 Interest rate loss or interest rate gain is calculated according to the rules in the regulations of 7 May 2010, no. 654 relating to credit agreements, etc., section 9. The Norwegian State Educational Loan Fund will calculate an interest rate for the rest of the agreement term at the time of the payment. This interest rate is the weighted average of the interest rate on the two offers of fixed interest loans from the Norwegian State Educational Loan Fund that are closest to the borrower's loan in terms of fixed period, one with a shorter fixed rate period and the other with a longer fixed rate period that the remaining agreement term. If the additional payment is made at a time when a fixed interest rate is offered, the interest rate on these offers must be used. If there are no offers of fixed interest rates when the additional payment is made, the Norwegian State Educational Loan Fund must use its latest fixed interest rate offer. If there are less than three years of the repayment term remaining, the Norwegian State Educational Loan Fund uses the variable interest rate at the time the deposit is made and the Norwegian State Educational Loan Fund's last offer for a three-year fixed interest rate period to calculate an average interest rate. If the weighted interest rate is higher than the interest rate agreed by the borrower, the interest rate loss will be added to the borrower's debt. If the weighted interest rate is lower than the interest rate agreed by the borrower, the interest rate gain will be deducted from the borrower's debt. Section 2-8. Additional payment on loans with fixed interest rates In the case of additional payment on loans with fixed interest rates, interest rate loss or interest rate gain is calculated according to section 2-7 on the part of the deposit that exceeds the instalment amount, charges, costs and interest calculated pursuant to the Act relating to interest on overdue payments. Section 2-9. Cancellation of a fixed interest rate agreement The borrower may cancel the fixed interest rate agreement. The table shows the time for a transition to a variable interest rate on the basis of when the cancellation is received by the Norwegian State Educational Loan Fund: Application time Before 17 February Before 17 April Before 17 June Before 17 August Before 17 October Before 17 December Interest rate applicable from 1 March 1 May 1 July 1 September 1 November 1 January If the borrower cancels the fixed interest rate agreement during the agreement term, interest rate loss or interest rate gain, is calculated in accordance with section 2-7. If the borrower cancels the fixed interest rate agreement during the fixed period, the interest rate cannot be fixed again for two months. The interest rate is variable in the interim. Section Cancellation of a fixed interest rate agreement when a loan or grant is given by the Norwegian State Educational Loan Fund 4

5 The fixed interest rate agreement is cancelled if the borrower starts full-time or parttime education during the agreement term and receives a loan or grant from the Norwegian State Educational Loan Fund. The interest rate becomes variable from the first day of the month following cancellation of the agreement. Interest rate loss or interest rate gain is calculated in accordance with the rules in section 2-7. Section Cancellation of a fixed interest rate agreement on permanent transfer to the Norwegian National Collection Agency The fixed interest rate agreement is cancelled if the debt is transferred permanently to the Norwegian National Collection Agency, see Chapter 13. Interest rate loss or interest rate gain is not calculated. Chapter 3. Repayment and instalment amounts Section 3-1. Repayment and instalment amounts The longest repayment term is 20 years from the last time the loan is made interestbearing. When a borrower has payments postponed for a period, the repayment term is usually extended by a corresponding period. The longest payment period is 30 years. The educational loan must be paid in accordance with the annuity principle. The instalment amounts are established on the basis of a 20-year repayment term for loans above NOK 251,000. In special cases, the Norwegian State Educational Loan Fund may establish instalment amounts in a different way. The loan must be repaid before the borrower reaches the age of 65. For borrowers aged over 45, the instalment amounts are increased so that the repayment term is no more than 20 years. The instalment amount is adjusted when the interest rate is amended. Section 3-2. Payment plan The Norwegian State Educational Loan Fund sends out a payment plan when the loan is made interest-bearing in accordance with section 2-1. Any borrower who has received a payment plan and has then received a loan or grant for a new study programme receives a new payment plan for the collective debt. Section 3-3. Additional payments Borrowers with a variable interest rate may redeem the debt or repay it more quickly by paying larger amounts than the amounts specified in the payment plan, at no additional cost. For borrowers with fixed interest rates in accordance with section 2-5, additional payments made during the agreement term will lead to calculation of interest rate loss or interest-rate gain in accordance with sections 2-7 and 2-8. Additional payments can only be refunded in special cases. Chapter 4. Billing and charges Section 4-1. Payment of invoices The education debt must be repaid monthly. 5

6 The borrower will receive the first invoice approximately seven months after the loan has been made interest-bearing, see section 2-1. Borrowers who receive a loan or grant for part-time education and who already have a payment plan for a loan must pay according to this plan. When the borrower is no longer receiving a loan or grant, he or she will receive a new payment plan for the entire debt. There will be no break in payments for the borrower, as stated in the second paragraph. The instalment amount must be paid even if the borrower has not received the invoice. Section 4-2. Charges for reminders and paper invoices A charge of NOK 18 will be applied to borrowers who receive paper invoices. Borrowers who are unable to use electronic notification due to documented visual impairments will be exempt from this charge. A charge of NOK 280 will be made for the first reminder. A charge of NOK 490 for the second reminder will be added to the first reminder. The second reminder is a warning concerning cancellation of the entire debt. Section 4-3. Order of priority for payments and costs for payments A payment covers, in this order: any debt collection charges, other charges, interest and the loan. The borrower must cover costs when paying the debt, e.g. charges when paying from abroad. Chapter 5. Default on the payment obligation Section 5-1. Consequences of not paying after the second reminder If the borrower does not pay before the deadline given in the second reminder, the Norwegian State Educational Loan Fund makes a decision to cancel the loan so that the entire debt falls due for payment. The Norwegian National Collection Agency takes over collection of the debt. Interest is calculated on the principal amount and capitalised interest from the cancellation date according to the Act relating to interest on overdue payments. The cancellation is annulled if the borrower pays or receives deferment of payment for the overdue unpaid instalment amounts. When the cancellation is annulled, the Norwegian State Educational Loan Fund withdraws the case from the Norwegian National Collection Agency and the borrower again receives invoices from the Norwegian State Educational Loan Fund. Section 5-2. Agreement regarding payment of defaulted debt If the borrower does not pay all of the unpaid instalment amount, the Norwegian National Collection Agency and the borrower may conclude a payment agreement for the overdue amount. Section 5-3. Enforced debt collection A requirement for repayment of educational debt is a compulsory basis for distraint. In the event of a significant default, the Norwegian National Collection Agency as the special enforcement commissioner is able to implement distraint proceedings for the entire debt 6

7 according to the rules in the Enforcement Act. The Norwegian National Collection Agency may also send the claim for distraint to the enforcement commissioner for the city. The debt collection can be stopped if the overdue instalment amounts are paid. Section 5-4. Borrowers who live abroad If the borrower is domiciled abroad, the Norwegian National Collection Agency may collect the debt in the country where the borrower lives. The Norwegian National Collection Agency may use a debt collection agency, lawyer or the judicial system. The debt collection can be stopped if the overdue instalment amounts are paid, even if the case has been transferred to a debt collection agency or lawyer. Section 5-5. Charges and costs The borrower may be required to pay charges and costs linked with repayment and debt collection. Section 5-6. Permanent transfer to the Norwegian National Collection Agency The borrower's debt may be transferred permanently to the Norwegian National Collection Agency when it has been discharged for three years. A permanent transfer of the debt to the Norwegian National Collection Agency will lead to loss of rights in accordance with these regulations and the regulations on allocation of educational support. Section 5-7. Debt that is not transferred permanently to the Norwegian National Collection Agency The debt will not be transferred permanently to the Norwegian National Collection Agency is one of these conditions is present: a) The borrower has a voluntary or compulsory payment scheme. b) The borrower has paid an amount equivalent to at least six instalment amounts in the past twelve months. c) The borrower establishes as probable that the current situation provides entitlement to deferment of payment, interest exemption or clearing of debt. d) There are special reasons not to transfer the debt. The reason for the exemption requirement must be given and set out before the deadline specified in the notification of permanent transfer of the debt to the Norwegian National Collection Agency. Exemption requirements that arrive after the debt has been transferred permanently will not be processed. Chapter 6. Debt settlement and debt that is difficult to recover Section 6-1. Out-of-court debt settlement in the event of financial difficulties Borrowers with financial difficulties may apply for out-of-court debt settlement. The application must be addressed to the Norwegian National Collection Agency. The application must include documented information on income, assets, the debt and the borrower's living expenses, and information must also be provided on how many children he or she has. The application must include corresponding information on the spouse or cohabiting partner, in addition to anyone else who may have an interest in the case. 7

8 Section 6-2. Debt settlement in accordance with the Debt Settlement Act Borrowers with financial difficulties may apply for debt settlement in accordance with the Debt Settlement Act. The application must be addressed to the Norwegian National Collection Agency. Section 6-3. Loans or grants in debt negotiation and debt settlement periods The borrower is generally unable to receive a new loan or grant during the debt negotiation period and debt settlement period, unless this is agreed in the scheme. Defaulting may lead to rejection of applications for any new loan or grant. Section 6-4. Clearing of debt that is difficult to recover Loans, interest and costs may be cleared when recovering the debt would be difficult. The application must be addressed to the Norwegian National Collection Agency. The application must include documented information on income, assets, the debt and the borrower's living expenses, and information must also be provided on how many children he or she has. The application must include corresponding information on the spouse or cohabiting partner, in addition to anyone else who may have an interest in the case. When assessing the application, emphasis must be placed on whether the ability to pay has been severely reduced, and how long the default has persisted. Emphasis must also be placed on what measures have been implemented with regard to the case, and what measures would be most appropriate for debt collection in future. The borrower cannot have debt cleared if this would be objectionable to other borrowers or society in general. Section 6-5. Limited right to appeal The borrower has no right to appeal in accordance with the rules in the Public Administration Act as regards judgements on cases relating to payment schemes beyond the scope of the Debt Settlement Act or in cases concerning the clearing of debt considered by the Norwegian State Educational Loan Fund to be difficult to recover. Part 2. Deferment of payment and interest exemption Chapter 7. Deferment of payment Section 7-1. Deferment of payment of the instalment amount Deferment of payment of one instalment amount will lead to the repayment term being made one month longer. The borrower may defer the payment of instalment amounts up to 36 times for each loan relationship so that the repayment term is up to three years longer. A loan relationship persists until the loan has been repaid. However, deferment of payment cannot exceed the repayment term boundaries in Chapter 3. Section 7-2. Deferment of payment of instalment amounts when interest is cleared A borrower who meets requirements for interest exemption is entitled to deferment of payment of instalment amounts for the same period. 8

9 If it is likely that the borrower will have an application for interest exemption for a period granted, deferment of payment may be granted for this period. This is applicable even if capital and income tax for the period has not been established. However, deferment of payment cannot exceed the repayment term boundaries in Chapter 3. Chapter 8. Interest exemption Section 8-1. Conditions for interest exemption Interest will be cleared for a specific period if the borrower has income below the limits in sections 8-2 and 8-3 for the same period and has met the conditions in section 8-4 or section 8-5. Full-time education may also provide entitlement to interest exemption. See section 8-6. Interest will be cleared in arrears and for whole months. A month is defined as a period of 30 days. Section 8-2. Requirement for own income A borrower who has had a personal and capital income per year that is lower than a limit in the table below may have interest cleared for as many months as are linked with the income limit in the table, if at least one of the conditions section 8-4 or section 8-5 was met in these months. Personal and capital income per year, in NOK Figures for months providing entitlement to interest exemption The income limits in the table are raised by a fixed amount for each child supported by the borrower, up to and including the year in which the child reaches the age of 16. For 2018, the income limit is raised by NOK for each child. For 2017, the income limit is raised by NOK for each child. For 2016, the income limit is raised by NOK for each child. For 2015, the income limit is raised by NOK for each child. 9

10 Section 8-3. Requirement concerning collective income for borrower and spouse, partner or cohabiting partner Borrowers who have had children or adopted children, have worked as carers, have been incarcerated in prison or a preventive detention institution, or who have been in fulltime work with low income may be entitled to interest exemption if they have also had a low collective household income. The collective personal and capital income per year for the borrower and the spouse, partner or cohabiting partner and children they have together must have been below the limits in the table below. Number of children 4 or more Collective personal and capital income per year, in NOK The income limits in the table are raised by a fixed amount per year for each child supported by the borrower, up to and including the year in which the child reaches the age of 16. For 2018, the income limit is raised by NOK for each child. For 2017, the income limit is raised by NOK for each child. For 2016, the income limit is raised by NOK for each child. For 2015, the income limit is raised by NOK for each child. Section 8-4. Other social and financial conditions Any borrower who has had personal and capital income per year below the limits in section 8-2 while meeting any of the requirements in letters a g is entitled to interest exemption for all or parts of the period in question. For the right to interest exemption in accordance with letter c, d, f or g, the total household income must also have been below the limits in section 8-3. a) Illness or unemployment The borrower was ill, registered unemployed or in receipt of work assessment allowance. This situation is required to have persisted for at least three consecutive months. b) Initial service and education in the Armed Forces The borrower did initial service in Norway or another EEA country or was a student at a military college. This situation is required to have persisted for at least three consecutive months. c) Birth or adoption The borrower had a child and cared for the child after the birth. The borrower's interest is cleared for up to twelve months from the birth. For borrowers who adopted children under the age of ten, interest is cleared according to the same rules for up to twelve months from the date of adoption. 10

11 d) Care work The borrower cared for a member of his/her immediate family for a consecutive period of three months. This is applicable to disability, people with physical impairments and elderly people in need of a great deal of care. e) Financial support in accordance with the Social Services Act The borrower had no income for three consecutive months, other than financial support in accordance with the Social Services Act, section 18. In such instances, interest may be cleared for up to 36 months in total. f) Full-time work with low gross income The borrower was in full-time work for at least twelve consecutive months and had a low average gross monthly income at the same time. The income limit for 2018 is NOK , for 2017 NOK , for 2016 NOK , and for 2015 NOK The borrower's interest may be cleared for up to 36 months in total. Voluntary unpaid work provides no entitlement to interest exemption. g) Incarceration The borrower was incarcerated in prison or a preventive detention institution for at least twelve consecutive months and had a low average gross monthly income at the same time. The income limit for 2018 is NOK , for 2017 NOK , for 2016 NOK , and for 2015 NOK Section 8-5. Conditions relating to part-time education, honorary positions, leave of absence from studies or participation in Erasmus+ Any borrower who has had personal and capital income per year below the limits in section 8-2 is entitled to interest exemption for all or parts of the period in question if, during the period, he or she a) has completed part-time education and documents the entitlement to a loan or grant in accordance with the regulations on allocation of educational support. b) also held a full-time honorary position within a nationwide student organisation or in connection with an educational institution or student association. In this case, the borrower's interest may be cleared for up to twelve months. This situation is required to have persisted for at least three consecutive months c) has taken a leave of absence from his/her studies for research purposes and is receiving a grant from the Research Council of Norway d) participated at the same time in the Erasmus+ programme for at least three consecutive months. Section 8-6. Full-time education A borrower who has completed full-time education and documents the entitlement to a loan or grant in accordance with the regulations on allocation of educational support is entitled to interest exemption for as long as a loan or grant could have been given. Interest exemption on this basis will not be means-tested against income. Section 8-7. Documentation requirements Anyone applying for interest exemption must document their income for the period in question and the fact that the other social and financial conditions were met. The Norwegian State Educational Loan Fund will obtain information on personal and capital income in Norway directly from the Norwegian Tax Administration. The borrower 11

12 himself/herself must submit documentation on the gross income per month, see section 8-4, letters f and g. If the borrower documents the fact that a social security or pension benefit was earned in a period earlier than the year in which he/she was paid and taxed, and requests assessment of the application for interest exemption on this basis, the social security or pension benefit must be distributed over the years in which the benefit was earned. The new annual income must be used as a basis in order to decide on a new application for interest exemption and for re-examining any previous decisions on interest exemption. Section 8-8. Deadline for applications In 2018, it is possible to apply for interest exemption for the period from 1 January Requests for interest exemption relating to periods before 1 January 2015 will not be processed. Exceptions may be made to the deadline for applications in special cases. Borrowers who are in education must apply for interest exemption within three years of the time at which their study programmes should have been completed according to the prescribed time. Part 3. Clearing of debt Chapter 9. Clearing of debt for borrowers in Finnmark and selected municipalities in other counties Section 9-1. Conditions for clearing of debt Borrowers may have parts of their educational loan cleared if they have been domiciled and gainfully employed in Finnmark or any of the municipalities of Lyngen, Storfjord, Kåfjord, Skjervøy, Nordreisa, Kvænangen or Karlsøy in Nord-Troms for a qualifying period of twelve months. In special cases, the scheme may also include borrowers who have worked in another town for a short time. Without taking into account the place of residence, the scheme also includes borrowers who have been gainfully employed doctors in the following municipalities for twelve consecutive months: Troms: Gratangen, Ibestad, Torsken and Berg Nordland: Tysfjord, Rødøy, Nesna, Bø, Øksnes, Evenes, Vega, Flakstad, Moskenes and Andøy Trøndelag: Leka, Fosnes, Røyrvik, Høylandet and Lierne Møre og Romsdal: Aure Section 9-2. Clearing of debt Debt can be cleared at a rate of ten per cent per year, calculated from the total loan on completion of education, but this amount must not exceed NOK or be below NOK 2000 per year. Only interest-bearing loans are included in the total. If the debt is cleared after the loan has been made interest-bearing, the total will be reduced accordingly. The same will happen if the borrower has received a loan or grant to which he or she was not entitled. The total may not be changed if a loan is converted to a grant after the loan has been made interest-bearing. 12

13 Section 9-3. Conditions for being regarded as gainfully employed To be regarded as gainfully employed during the qualifying period, throughout the qualifying period parties must a) have been in work equivalent to at least 50 per cent of full-time hours b) have been in full-time work for at least six months and been registered as seeking full-time work for the rest of the period c) have been caring for children born in 2008 or later, or been involved in particularly onerous care obligations with regards to the immediate family d) have been on study leave with pay or a grant equivalent to at least 50 per cent of a full position, if the pay was paid by an employer in Finnmark or one of the selected municipalities in Nord-Troms e) have been employed in the transport sector, aboard a ship, aboard an oil exploration vessel or on permanent installations on the Norwegian continental shelf while also being considered as domiciled in accordance with section 9-5 f) have been working as a doctor in one of the selected municipalities referred to in section 9-1, second paragraph and considered gainfully employed by the county doctor. The time for which a borrower is registered sick is included in the qualifying period. Section 9-4. Borrowers who are not deemed to be gainfully employed The borrower will not be deemed to be gainfully employed for the period in question if he or she a) received or could have received a loan or a grant from the Norwegian State Educational Loan Fund for full-time education, was doing initial service or was studying at a military college b) was caring for children born in 2008 or later or was involved in particularly onerous care obligations with regards to the immediate family, and at the same time was more than 50 per cent gainfully employed outside Finnmark and the selected municipalities in Nord-Troms c) was in receipt of work assessment allowance, unless he or she met the conditions for occupational activity in accordance with section 9-3. Section 9-5. Conditions for being regarded as domiciled The borrower will be deemed to be domiciled in Finnmark or one of the selected municipalities in Nord-Troms during the qualifying period only if he or she had both an actual and a registered domicile in the town throughout the qualifying period. If there is documentation to prove the fact that the borrower was actually domiciled and gainfully employed in the town, the Norwegian State Educational Loan Fund may in special cases clear the debt even if the borrower did not have a registered address in the town throughout the entire qualifying period. Section 9-6. Qualifying period requirements The qualifying period is twelve consecutive months. Debt is cleared after the end of the qualifying period. The qualifying period starts on the date on which the borrower is deemed to be gainfully employed and domiciled. For borrowers who continue to work after the first qualifying period and are still deemed to be domiciled, later qualifying periods will be 13

14 calculated from the day after the end of the first qualifying period. If the qualifying period is interrupted due to initial service or education, an exception may be made to the requirements for a consecutive qualifying period. In the event of interruptions due to education, an exception may be made only once for up to one year. If the qualifying period runs over several calendar years, the regulations that applied at the start of the period must be applied unless the rules are amended in favour of the borrower. Section 9-7. Clearing of debt for teachers in compulsory schools Qualified teachers in compulsory schools who have been gainfully employed in compulsory schools in Finnmark or the selected municipalities in Nord-Troms may have up to NOK extra of their debt cleared in the year. This debt will be cleared without taking the domicile into account. Qualified teachers in compulsory schools refers to people who meet the skills requirements appointment of teaching personnel in compulsory schools in accordance with the Act relating to primary and secondary education, section 10-1 and associated regulations. The borrower must have been gainfully employed in a teaching position at a compulsory school for twelve consecutive months. The qualifying period begins from 1 August 2017 at the earliest. The rules in this chapter are applicable where appropriate. Section 9-8. Payments The borrower must pay instalments, interest and any charges during the first qualifying period. The borrower does not have to pay instalments during later qualifying periods, but all interest and any charges added must be paid. If the borrower has paid instalments on the loan after the first qualifying period, the amount will only be refunded if the borrower so requests. Requests for refunds must be submitted within three years of the instalment being paid. Section 9-9. Clearing of debt in the event of defaulted payment obligation When notification is sent relating to cancellation of the loan, an application concerning clearing of debt cannot be processed until the overdue instalment amount is paid, unless deferment of payment can be granted. Overdue instalment amounts that should have been paid before the end of the first qualifying period will not be cleared. Exceptions will be made if the borrower is entitled to deferment of payment. Section Deadline for applications Applications for clearing of debt must be submitted after each new qualifying period, with new documentation. The application must be received by the Norwegian State Educational Loan Fund within three months of the end of the qualifying period. 14

15 Chapter 10. Clearing of debt for borrowers who have completed certain teacher training programmes Section Clearing of debt following certain teacher training programmes Borrowers who have completed certain teacher training programmes may have up to NOK of the debt cleared. Sections 10-2, 10-3, 10-4 and 10-5 indicate which training programmes are included. Debt will not be cleared more than once for each teacher training programme. Section Science subjects The scheme includes borrowers who have completed any of these training programmes: a) integrated Masters programme on teacher training, specialising in science subjects b) two-year didactic Masters programme for teachers specialising in science subjects c) educational theory and practice training following completion of a Masters degree or main subjects in biology, physics, geosciences, information technology, chemistry, mathematics or technology subjects, or completion of a Master of Engineering degree d) educational theory and practice training following completion of engineering training. Section Foreign languages The scheme includes borrowers who have completed any of these training programmes: a) integrated Masters programme on teacher training, specialising in foreign languages b) two-year didactic Masters programme for teachers specialising in foreign languages c) educational theory and practice training following completion of a Masters degree or main subjects in foreign languages Nordic languages and Norwegian are not counted as foreign languages in accordance with this scheme. Section Sami as part of training The scheme includes borrowers who have taken at least 60 higher education credits in a Sami language as part of one of the following training programmes: a) Sami general teacher training or Sami teacher training for compulsory schools b) Sami nursery teacher training c) general teacher training or teacher training for compulsory schools Section Sami in addition to other training The scheme includes borrowers who have taken at least 60 higher education credits in a Sami language in addition to one of the following training programmes: a) educational theory and practice training b) nursery teacher training. Section Deadline for applications Applications for clearing of debt must be received by the Norwegian State Educational Loan Fund within six months of the borrower having taken the final examination as part of the training course that provides a basis for clearing of debt. 15

16 The Norwegian State Educational Loan Fund may make exceptions to the deadline if there are special reasons as to why it is not possible to comply with the deadline for applications. Chapter 11. Clearing of debt for borrowers who have completed teacher training for compulsory schools or upper secondary teacher training Section Conditions for the clearing of debt Borrowers may have parts of their educational loan cleared if they have completed teacher training for compulsory schools for years 1-7 or years 5-10, or upper secondary teacher training for years 8-13 in the prescribed time. The borrower must also have been gainfully employed in a teaching position at a primary or secondary school or in upper secondary education for a qualifying period after having completed training. The scheme includes borrowers who start teacher training for compulsory schools or upper secondary teacher training from Without taking into account completion within a prescribed time, the scheme also includes borrowers who have completed teacher training for compulsory schools for years 1-7 or years 5-10, or upper secondary teacher training for years 8-13, and who have worked at a primary or secondary school or in upper secondary education in Nordland, Troms or Finnmark during the qualifying period. Section Clearing of debt NOK of debt can be cleared for borrowers who have completed teacher training for compulsory schools for years 1-7 in the prescribed time. NOK of debt can be cleared for borrowers who have completed teacher training for compulsory schools for years 5-10 or upper secondary teacher training for years 8-13 in the prescribed time. NOK of debt can be cleared for borrowers who have completed teacher training for compulsory schools for years 1-7 or years 5-10, or upper secondary teacher training, and who have been gainfully employed in a teaching position at a primary or secondary school or in upper secondary education in Nordland, Troms or Finnmark during the qualifying period. Borrowers who are entitled to clearing of debt in accordance with the first or second paragraph may also be entitled to clearing of debt in accordance with the third paragraph if the conditions for this are in place. Section Exemption from the requirement to complete training within a prescribed time The borrower may have debt cleared in accordance with section 11-2, first or second paragraph, even if the training programme was not completed within a prescribed time, borrower needed more time due to a) disability in the study situation, cf. section 9-3, second paragraph of the regulations on allocation of educational support b) the borrower having a child during the training period c) the borrower being delayed on account of illness d) the borrower simultaneously holding a full-time honorary position within a nationwide student organisation or in connection with an educational institution or student association for at least three consecutive months 16

17 Section Qualifying period requirements The borrower must have been gainfully employed in a teaching position on at least a 50 per cent basis at a primary or secondary school or in upper secondary education for at least three of the first six years after having completed training. Section Deadline for applications Applications for clearing of debt must be received by the Norwegian State Educational Loan Fund within six months of the end of the qualifying period. Chapter 12. Clearing of debt for borrowers who are disabled or receiving a retirement pension Section Right to the clearing of debt for borrowers in receipt of disability benefits Any borrower with an earning capacity that is permanently reduced by at least 50 per cent and who is receiving disability benefits or equivalent benefits from a foreign social security scheme may be entitled to have all or parts of the debt cleared if their personal and capital income in 2018 is NOK or less. The requirement for permanent reduction in earning capacity is just 40 per cent if the borrower received work assessment allowance up until a decision was made on disability benefits. The borrower is entitled to have debt cleared as outlined in the table below. Table for 2018 showing income limits, new debt and new instalment amounts after clearing of debt New instalment Personal and capital income per year New debt amount NOK NOK 0 NOK 0 NOK NOK NOK 666 NOK NOK NOK 800 NOK NOK NOK 943 NOK NOK NOK The income limits in the table are raised by NOK per year for each child supported by the borrower, up to and including the year in which the child reaches the age of 16. Income registered for the borrower's child will not be included. The application for clearing of debt will be processed in accordance with the conditions in force in the year in which the Norwegian State Educational Loan Fund receives the application. This is also applicable if the decision on disability benefits dates back to before the application year. The Norwegian State Educational Loan Fund will obtain information on personal and capital income from the Norwegian Tax Administration. Section Clearing of debt for borrowers who have been unable to work for at least six years Any borrower who has been unable to work at all over the past six years and is still fully unable to work may have the debt cleared in accordance with the same income limits as 17

18 those stated in section For this, the borrower is required not to have received work assessment allowance or corresponding benefits from a foreign social security scheme during the period. Only periods of incapacity for work from the last date on which the loan was made interest-bearing will be taken into account. Section Clearing of debt due to retirement pension If the borrower is in receipt of a retirement pension from the National Insurance Scheme or a corresponding pension scheme abroad, the debt may be cleared entirely or partly in special cases. The fact that the borrower has reached the age of 65 or has paid down the loan for 20 years does not in itself provide a basis for clearing the debt. Section Annulment of the decision to clear debt when the borrower receives a loan or grant If the borrower receives a loan or grant in accordance with the regulations on allocation of educational support, the decision to clear debt will be annulled. Interest that has been cleared will not be re-added. If the decision to clear debt was made more than ten years ago, it will not be annulled. Part 4. Debt transferred permanently to the Norwegian National Collection Agency Chapter 13. Debt transferred permanently to the Norwegian National Collection Agency and debt settlement schemes Section Payment terms Requirements for repayment of education debt transferred permanently to the Norwegian National Collection Agency will have interest added in accordance with the interest rate established for fixed interest rate loans in the Norwegian State Educational Loan Fund. A payment covers, in this order: debt collection charges, other charges, interest and the loan. Section Exercise of authority by the Norwegian National Collection Agency The Norwegian National Collection Agency is the creditor for education debt transferred permanently from the Norwegian State Educational Loan Fund. A requirement for repayment of educational debt is a compulsory basis for distraint. As the special enforcement commissioner, the Norwegian National Collection Agency is able to implement distraint proceedings for the entire debt according to the rules in the Enforcement Act. The Norwegian National Collection Agency may also send the claim for distraint to the enforcement commissioner for the city. Section Debt settlement in accordance with the Debt Settlement Act Borrowers with financial difficulties may apply for debt settlement in accordance with the Debt Settlement Act. The application must be addressed to the Norwegian National Collection Agency. 18

19 Section Out-of-court debt settlement When the Norwegian State Educational Loan Fund has transferred education debt permanently to the Norwegian National Collection Agency, the Norwegian National Collection Agency may conclude an agreement concerning out-of-court debt settlement. Any application for out-of-court debt settlement must include documented information on income, assets, the debt and the borrower's living expenses, and information must also be provided on how many children he or she has. The application must include corresponding information on the spouse or cohabiting partner, in addition to anyone else who may have an interest in the case. The rules in the Debt Settlement Act are applicable as supplementary regulations. Section Clearing of debt The Norwegian National Collection Agency is able to clear loans, interest and costs if the borrower's ability to pay has been severely reduced. The borrower cannot have debt cleared if this would be objectionable to other borrowers or society in general. Any application for clearing of debt must include documented information on income, assets, the debt and the borrower's living expenses, and information must also be provided on how many children he or she has. The application must include corresponding information on the spouse or cohabiting partner, in addition to anyone else who may have an interest in the case. If the borrower dies, the debt is cleared. Section Limited right to appeal The borrower has no right to appeal in accordance with the rules in the Public Administration Act as regards judgements on cases relating to clearing of debt due to severe reduction of the ability to pay. Part 5. Final provisions Chapter 14. Loss of rights Section Consequences of breaching the duty of disclosure If a borrower has intentionally or inadvertently breached the duty of disclosure and hence has been paid or attempted to receive or credit a loan or grant to which he or she is not entitled, the borrower may lose the right to interest exemption, deferment of payment and clearing of debt. The Norwegian State Educational Loan Fund may demand a refund of the amount and calculate interest from the time at which the borrower was allocated the loan or grant. The entire debt may be cancelled and recovered. If a borrower has intentionally or inadvertently breached the duty of disclosure and hence has been in receipt of interest exemption or debt to which he or she is not entitled, the borrower may lose the right to deferment of payment and interest exemption and debt. When assessing the breach, the primary emphasis must be placed on the duration of the breach and how much loan or grant or interest exemption or debt the borrower has wrongfully received. 19