The three types of grants are funding from grants, student loans or grants from other government departments.
Student loans and grants
Your student loans or grants include repayment on a fixed term (usually for 5 years plus an additional 4 years). They usually have a fixed interest rate.
Including your student loans or grants at this stage will mean you have a greater likelihood of being called for a funding call in the future.
If you have an outstanding balance on your student loans or grants, consider the consequences of leaving them unpaid for a lengthy period of time, such as:
repayment of all or part of your student loan, even when you finish your degree – this applies to your student loans to the extent of the remaining balance (up to the maximum interest rate of the lender at the time).
the loss of any income you could have earned. Your current annual income must be more than the amount of your loans. There are exceptions if you are studying part-time and are earning more than the loans you are paying back.
The government will contact students on a student loan or grant basis when they are at risk of default. This is called a risk of default call.
Note: If your student loan or grant is in arrears to you, the lender must arrange to pay it all at once, before the repayment period has started (called a default levy call).
Including your student loans and grants for 5 years or longer (excluding those paid to you as part of your study at university), however, means the lender can request your student loans or grants to be repaid in full. This will mean an outstanding student loan balance or grant balance, or both, could be reduced by the lender, and you may be able to earn income for the period of your loans or grants. However, you cannot earn income if you have defaulted on your student loans or grants (or if you are studying part-time, and are earning more than what you are owed). Please see the Student Loans and Grant Guide for more information about repayment plans and fees.
What are the financial consequences of a failed call at this stage?
Depending on which type of grant you have, you may be granted a debt and be expected to pay it back. In some cases, you must repay and the repayment must be within 2 years. If these consequences do not apply, your loans and your financial future may remain unchanged to the extent that a lender will not call the loan
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