Repayment Holidays
A repayment holiday is similar to a deferment period, but usually shorter – a matter of a few months.
It’s a period when the bank will let you off of repayments while you’re having a hard time, so long as you start paying again when you’re out of the woods. It can be either before or after you’ve started repaying.
With regards to repayment holidays for student loans, students can now take up to two years holiday following their graduation - even if they're earning over the repayment threshold. But it's best not to swan off to Jamaica, grow some dreads and enjoy the fumes, shall we say, without contacting your LEA or the SLC and asking about this option.
Last updated on: 07 August 2009