ERUDIO student loans help

anna2007

@ erudioed It looks like Ibreakwind may have found the answer to the deferment drop - it's possible that self-employed earnings would be factored into BIS's calculation, so the big rise in self-employed workers, with earnings well below AWE, would explain the big drop in the threshold.

BUT - self-employed earnings are excluded from Average Weekly Earnings, which is what the deferment level is based on per the regulations, so should have no impact, from ONS:

"Average Weekly Earnings is calculated from returns to the Monthly Wages and Salaries Survey (MWSS), and is weighted to be representative of the Great Britain economy as a whole. The self-employed, HM Armed Forces and Government Supported Trainees are excluded from the statistics".

The definition of deferment level in the regulations:

"85% of the lender’s estimate of average monthly earnings of all full-time employees in Great Britain for the January when the level will apply based on figures published by the Office for National Statistics, or if that Office ceases to publish relevant figures, any other published figures".

No mention of self-employed earnings being factored in - the self-employed aren't full-time employees either - the ONLY figure that legally counts is 85% of average earnings for all full-time employees.

cluelessfish

from money savings expert news article "Student loan deferment threshold to fall: Q&A on why it's happening"

Can the deferment threshold change year-on-year?

The Education (Student Loans) Regulations 1998 sets out how the deferment threshold is calculated year-on-year by BIS.

The act states: "Deferment level means 85% of the lender's estimate of average monthly earnings of all full-time employees in Great Britain for the January when the level will apply based on figures published by the Office for National Statistics, or if that Office ceases to publish relevant figures, any other published figures."

What this means is that the deferral threshold is always based on the same calculation using the latest earnings figures from the Office for National Statistics (ONS). And as the ONS' figures change year-on-year, so too can the deferral threshold.

How has this year's deferment threshold been calculated?

The deferment threshold for the year from 1 September 2014 has been calculated based on 85% of the estimated average earnings for full-time workers in Great Britain in January 2015.

The average earnings estimate for January 2015 has been calculated using average weekly earnings from the April 2013 - April 2014 Annual Survey of Hours and Earnings (ASHE), and using earnings growth between April 2013 and April 2014, as measured by Average Weekly Earnings (AWE).

The reason September's deferment threshold has dropped is because of the predicted reduced earnings growth.

firstly notice that it says full-time workers so part-time workers shouldn't come into it. Where the full-time/part-time line is drawn for self employed people i wouldnt like to guess.

but of more importance is that the estimate for jan 2015 is based on ASHE and AWE surveys for april 2013-2014.

The deferment threshold has been decreased by 7%!!!!

This means bis thinks average weekly earnings for full-time workers is going to be 7% less in jan 2015 than it was in jan 2014.

But the surveys are on the ons website show small increases in average earnings until last month when there was a whopping 0.2% fall. Has any one seen any news stories about wages falling by anywhere near 7%?

doh to slow

ericctheking

cluelessfish wrote: »

The deferment threshold has been decreased by 7%!!!!

This means bis thinks average weekly earnings for full-time workers is going to be 7% less in jan 2015 than it was in jan 2014.

But the surveys are on the ons website show small increases in average earnings until last month when there was a whopping 0.2% fall. Has any one seen any news stories about wages falling by anywhere near 7%?

doh to slow

Because it is a stitch up.

Why do people believe BIS when they say the calculation hasn't changed?
It won't be the first time they have lied.
They might also claim the calculation hasn't changed but I bet they have played with the definitions of various categories.

What are the odds on the threshold dropping next year too, Eruido seem to think it will drop every year from what they have said on the phone to people.

ElwoodBlues

This is the letter I received from Erudio today, along with yet another deferment form.

The events behind it are: I received first deferment form. I wrote back to request deferment (used template letter and sent payslips etc). They sent out another deferment form with a letter saying 'you didn't sign the first one (I hadn't even sent one back).

They took first payment by DD and wrote to me stating I was a month in arrears (for the previous month). I did a DD indemnity and got payment returned.

I wrote back again stating that they should process my deferment with my original application, that I am not in arrears as they claim. Otherwise, start the official complaints procedure.

They took another DD payment, and again I got my bank to overturn it.

Not sure what to do next, they obviously ignored my previous official complaint request.

erudioed

Right, duly noted, right, so we still need it to be explained!

cluelessfish

its not about believing what they say its about holding them to account which is easier to do when they are stuck between a rock and a hard place. Sooner or later bis will have to say something to explain why the deferment level has dropped by so much.

dotties

anna2007 wrote: »

This from Erudio's FAQ (under 'Applying for deferment' on their website:

"As is the case for all deferments reviewed by the Student Loans Company (SLC), deferment applications will be assessed by Erudio on the threshold applicable on the date the deferment application form is received".

Unfortunately, Erudio aren't very good at getting things done quickly when it comes to deferment, I wouldn't trust them to get your application pack to you in good time.

Could you ask them to email you the application form? The guidance notes are available on their website.

If they can't or won't do that, has anyone got a blank application form they'd be willing to post up on here (would have to screen out the customer reference number on the first page) - it would obviously help anyone else in the same situation?

Well I got my deferment application yesterday and will send it next day delivery this afternoon. I have just realised I have sealed the envelope without photocopying it though.
Also we use an electronic pay slip system, the only way to get a hard copy is to print from the screen (it includes all fields, can't me amended and has Oracle E Pay all over it), which has never been a problem with SLC but I wonder if this lot will make a thing of it.
I thought the quote about it being received had vanished from the FAQs but I was obviously being daft. I have however, print screened it in case they remove it.

ElwoodBlues

Payslips are almost irrelevant, if you supply them with all the other information they are now requesting (P60's, tax returns, bank statements etc).

I'm not going to use their form, they are insisting that I have to. So we are at loggerheads. Now they're saying that's because of "Treating People Fairly and Equality Laws". I guess that must mean they have the right to shaft us all equally then!

dotties

ElwoodBlues wrote: »

Payslips are almost irrelevant, if you supply them with all the other information they are now requesting (P60's, tax returns, bank statements etc).

I'm not going to use their form, they are insisting that I have to. So we are at loggerheads. Now they're saying that's because of "Treating People Fairly and Equality Laws". I guess that must mean they have the right to shaft us all equally then!

They really are a shower aren't they!
I have stuck in my P60, but it's another print yourself thing and relates to when I was on a different payscale - which I have pointed out to them. TBH I'm going to be at risk of redundancy soon (we already know it's coming but it won't be official until later this year) so they may not be getting anything from me anyway!

anna2007

cluelessfish wrote: »

firstly notice that it says full-time workers so part-time workers shouldn't come into it. Where the full-time/part-time line is drawn for self employed people i wouldnt like to guess.

It doesn't matter whether a self-employed person works full-time or part-time, as they're not employees!

Income from self-employment is volatile, so it's not surprising the ONS excludes it from average earnings, otherwise their figures would be regularly skewed, e.g. a sudden 7% drop...