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  • FIRST POST
    • JohnHartingtom
    • By JohnHartingtom 22nd Sep 16, 4:17 PM
    • 1Posts
    • 0Thanks
    JohnHartingtom
    Erudio Student Loan End Date
    • #1
    • 22nd Sep 16, 4:17 PM
    Erudio Student Loan End Date 22nd Sep 16 at 4:17 PM
    A few years ago Erudio took over the loans from the Student Loans Company (probably bought each one for a few pence). I've found Erudio to be a pain to deal with, for various reasons.

    I've never reached the threshold for repayment, and I knew that eventually the student loan debt would be cancelled (though it isn't clear whether at that point it is cancelled in the sense of "totally cleared and wiped" or cancelled in the sense of "get marked as a defaulter with credit agencies" - I suspect with the old SLC it would have been the former, but with Erudio the latter - would love to know for sure.)

    I did offer Erudio small settlement figures since I'll never earn enough before the loan is cancelled to have to start paying it back. They refused my offers. Fine, their loss.

    However, I wanted to know the exact date when the student loan is cancelled. I could then look forward to the first year of not having to fill in their painful deferment forms.

    I emailed them last week to say:

    "Hi,
    Please can you tell me the exact date when my loan agreements expire, and my connection to Erudio is therefore ended?
    I realise I’d have to make some repayments before that if I reached the threshold for repayment, but that is incredibly unlikely, since my income has gone down year on year. I had offered settlement figures in the past (someone offered to clear the debt for me – a decreasing amount offered each year) but I was refused by Erudio. Which is fine by me.
    Many thanks,"

    Their reply a few minutes ago said:

    "Thank you for your recent email.
    The maturitydate of your account at the moment is 29th June 2022.
    This date will increase by twelve months every year the account is deferred.
    If you require anything further, please do not hesitate to contact us."

    WHAAAT! They seem to be saying for each year of deferral, they add a year to the end date - so you'd never reach a point where the debt was cancelled!

    The agreement text from 1995 said:

    8. Cancellation of Repayments
    The present regulations provide for (a) cancellation of repayments if you die and (b) cancellation of repayments (so long as you are not in breach of any obligations to us) if (i) you are aged under forty when you last enter an agreement to borrow from us and you attain age fifty or all all or part of your last borrowing from us has been outstanding for at least twenty five years or (ii) you are aged at least forty when you last enter an agreement to borrow from us and you attain age sixty.

    So: can Erudio keep the loan active forever? Or will it one day cease to be a millstone around my neck? And what happens at that point?

    Thanks!
    Last edited by JohnHartingtom; 22-09-2016 at 4:29 PM.
Page 1
    • Ed-1
    • By Ed-1 22nd Sep 16, 5:39 PM
    • 1,358 Posts
    • 729 Thanks
    Ed-1
    • #2
    • 22nd Sep 16, 5:39 PM
    • #2
    • 22nd Sep 16, 5:39 PM
    So: can Erudio keep the loan active forever? Or will it one day cease to be a millstone around my neck? And what happens at that point?
    Originally posted by JohnHartingtom
    No they can't. It has to be written off if you have kept your end of the deal (i.e. kept on successfully deferring).

    The 'maturity date' that they are quoting has no relation to the eventual cancellation date. It simply reflects the date the loan would be paid off if you do not defer.

    See page 140 of the old SLC training manual:

    https://www.whatdotheyknow.com/request/1790/response/19206/attach/2/Class%20Manual%20PDF.pdf

    The regulations state that the loan has to be manually written off 25 years after the date the last loan agreement was entered into, at age 50 or age 60 depending on how old you were when you entered into the last loan agreement.
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