Repayment

Repayments from refugees helps to fund the resettlement of other refugees. Loan repayments over the life of the loans reflect refugees becoming established within the U.S. with the bulk of loan repayments being made during the second through fourth year of the loan repayment period.

Receiving Repayments

The task of receiving repayments is generally given to the resettlement agencies along with IOM Irvine. Billing services are conducted according to policies and procedures defined by IOM.

Deferrals

IOM billing and credit reporting policies are designed to encourage repayment without placing undue hardship on refugees as they adjust to their new lives in America. Additional deferments or reduced monthly payments can be granted in the event of hardship such as unemployment, temporary medical disability or while in school full time. Refugee loans can be forgiven on case-by-case basis for humanitarian reasons based on specific criteria including death, permanent medical disability, and/or bankruptcy.

Incentives to Repay

To provide incentive to help refugees integrate and contribute into the US economy, all program repayments are subject to credit reporting in accordance with the Fair Credit Reporting Act (FCRA). Missed payments cause the loan to be reported as past due and will adversely impact the refugee's credit score; conversely, newly arrived refugees with no prior financial history who pay on time will soon have an average credit score.