Interest and indexation
Interest on H-loans is variable and is based on the interest terms available to the Treasury, with the addition of a fixed 0.8% interest premium. In spite of the above:
Indexed loans – 4%,
Non-indexed loans – 9%.
The loans are indexed but bear no interest until the last day of studies.
Indexation is calculated as of the first day of the next month following each payment transaction.
At the final day of studies, the student loan is calculated and the basic interest rate of the bond is based on the consumer price index on the final day of studies.
Loan terms after the final date of study
When the date of the end of studies has been determined, the student loan debt is calculated and the basic indexation of the bond is based on the consumer price index on the final date of study.
The next day after the date of the final date of study s is the first interest date of the bond. The main rule in the repayment terms of a bond is that the bond is not indexed and the repayment period is dependent on the loan amount but with the proviso that the loan shall be repaid before the borrower becomes 65 years of age.
When a bond has been closed, the borrower may choose whether it will be indexed or not. Also, the borrower can also choose whether he repayment terms of the bond will depend on the loan amount or on his or her income, cf. Chapter 14 in the allocation rules 2020-2021. If a borrower has not informed the Fund of his choices regarding the above terms of his bond before the bond is closed, the above main rule is that the bond will be an annuity bond and non-indexed, see table in Chapter 14.2.2 in the allocation rules on the number of repayment years.
A bond cannot be restructured nor the terms of the bond changed after the bond has been closed and payments have begun.