The guarantor is the person who signed the agreement for the FINEB loan with the student. Usually these are the parents of the student, sometimes the partner and sometimes someone else.
The guarantor is jointly responsible for the repayment of the student loan.
Repayment by the guarantor
If the debtor pays late, or not in full or fails to pay the monthly amount, the guarantor is addressed to pay the outstanding amounts. The debtor first receives a payment reminder. If RCN-Studiefinanciering does not receive the amount before the due date then the guarantor is addressed to pay the outstanding amount.
Although the debtor is obliged to inform FINEB (RCN-Studiefinanciering) of address changes, it is possible that we do not always have the debtor’s most recent address. In that case the guarantor is addressed to pay the outstanding amount. However, if the guarantor brings RCN-Studiefinanciering into contact with the debtor in a timely manner, the debtor will still be informed of the repayment obligation.
The guarantor will pay the difference
If the debtor has to pay less per month based on an ability to pay measurement, the difference will be recovered from the guarantor. In that case, RCN-Studiefinanciering will contact the guarantor about the monthly amount that the guarantor must pay.
If the debtor does not repay at all, the guarantor is addressed to repay the full loan with interest at once.
If the guarantor is unable to repay the full student debt at once then the guarantor can apply for a payment plan. The guarantor then pays a fixed amount per month. Depending on the amount of the loan, a repayment period of up to ten years applies. The duration of the repayment period depends on the amount of the total student debt (excluding the interest).
Extension of repayment period
If the monthly amounts of the payment plan are too high then the guarantor can submit an application to extend the repayment period. Extending the period will lower the monthly amount.
Ability to pay measurement
If the guarantor has requested a payment plan and an extension of the repayment period, but the monthly amount is still too high then the guarantor can submit an application for an ability to pay measurement. In determining the amount that the guarantor must pay each month, the income of the guarantor is taken into account.
If it turns out that the guarantor has to pay less, the difference is possibly recovered from the other guarantor. If there is no other guarantor, the difference over that calendar year is cancelled. This means that both the debtor and the guarantor do not have to pay that difference for that calendar year. Not even if the debtor or the guarantor is going to earn more in the future and therefore has more ability to pay.
Pay on time
RCN-Studiefinanciering must receive the monthly amount before the end of each calendar month at the latest. The date on which the guarantor transfers the amount is not decisive, but the time when the money is in the account of RCN-Studiefinanciering. There may be one or more day’s difference.
To prevent the amount from being paid late, we recommend that a standing order/direct debit is taken out with the bank. The amount can also be transferred as a regular transfer via internet banking.
Consequences of late payment
If the guarantor does not pay the monthly amount, in full or too late then the guarantor will receive a payment reminder for the outstanding amount. The guarantor also runs the risk that an administration fee of $10 will be charged.
If RCN-Studiefinanciering does not receive the amount before the due date then the amount is collected by a bailiff. The collection costs, both judicial and extrajudicial, and the costs of legal proceedings are borne by the guarantor. Legal interest is calculated on the outstanding amount.
In addition, RCN-Studiefinanciering has the right to terminate the payment plan if the guarantor does not meet the payment obligation or not on time. The remainder of the amount that the guarantor must pay must be repaid at once in that case.