Non-means-tested Loan Scheme for Full-time Tertiary Students (NLSFT)
Non-means-tested Loan Scheme for Full-time Tertiary Students (NLSFT)

Consequences of Default

  • Interest-free Deferral of Student Loan Repayment
    The Finance Committee of the Legislative Council has approved an interest-free deferral of student loan repayment for a period of two years. Please click here to learn more.
  • Loan borrowers who have failed to repay two or more consecutive quarterly instalments / six or more consecutive monthly instalments without the SFO’s approval for deferment or loan repayment are considered as defaulters.
  • Failure to repay loan instalments by the due dates will result in extra payment of overdue interest.
  • The SFO reserves the right to withhold processing applications for or the disbursement of new student financial assistance / loans to defaulters.
  • The SFO will issue reminders to the defaulter and his / her indemnifier(s) requesting them to settle the overdue loan instalments by a specified date. Defaulters and their indemnifiers may also receive the SFO’s short messaging services and phone calls, urging them to settle the arrears.
  • If no payment or response is received from the defaulter and his / her indemnifier(s), the SFO may initiate legal proceedings against them for the recovery of the full amount of the outstanding loan together with interest, administrative fee and any recovery costs (including legal costs and related expenses incurred in the course of legal recovery actions) in one lump sum without further notice.
STEP 5 Loan Repayment

Deferment of Repayment

STEP 5 Loan Repayment

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