S-, R- and G-loans
An application can be made for exemptions from paying student loans if the payer or his family suffers from certain conditions, such as unemployment, disability illness or other reasons.
A special application for exemption must be made for each due date and the application for exemption must be received no later than 60 days after the due date of the payment.
It should be noted that an application for an exemption from a payment does not postpone the collection of the same payment. A borrower who receives an exemption after having paid an instalment may request the repayment of the amount that was paid.
Loans granted as of the school year 2020-2021.
The board of the Fund may grant a postponement of the monthly repayment, in full or in part, if a course of studies that qualify for a loan, illness, unemployment and/or unfitness for work due to illness, disability, pregnancy, the care of children, the care of a spouse or other comparable circumstances cause the recipient substantial financial difficulty.
Reasons that may cause financial difficulties
Studies eligible for a loan means that the studies of the applicant fulfil the requirements of Chapter 1 of the allocation rules on the eligibility of studies and that the student fulfils the requirements for academic progress.
A person is considered unable to work is one who as the right to a disability pension according to the definition of the Social Services Administration.
Maintenance of children and/or spouse means that the maintenance will affect the possibilities of the applicant to earn an income.
Unemployment means that the applicant is registered on the unemployment register and/or is actively looking for work.
Usually, the requirement is that the reasons causing financial difficulties have lasted for at least four months prior to the due date of the payment.
Generally, exemptions will not be granted if the loan recipient's annual income (2019) is greater than ISK 4,470,000, and that of a married couple / couple in registered partnership is greater than ISK 8,940,000.
If an applicant has children below the age of 18 in his care the maintenance of a child ISK 430,000 ISK is added to the reference amount.