ERUDIO student loans help

fermi

No probs.

They have hidden that away in an odd section of their FAQs.

kathrynha

fermi wrote: »

No probs.

They have hidden that away in an odd section of their FAQs.

Silly me for thinking it would be in the deferment section of their FAQs.
Email sent to them chasing it up.
At least with the form being delayed, it means the new one will be available, where the DD isn't mandatory. Last year I had just changed bank accounts and purposely left Erudio with just old account as I didn't trust them. Only about £5 in the account, with no overdraft meant they couldn't of got much.

evilsheep

I'm very confused.

I've recently received my latest correspondence from Erudio, after having sent them a template letter confirming my income, and 3 months payslips (I haven't filled in their DAF).

The letter is in reference to a complaint I lodged during a telephone call with them (they called me - and they also misunderstood the complaint, but that's another matter), and in it they quote Section 11 (a) and (b) of the Education (Student Loans) Regulations 1997:

Subject to the provisions of this regulation, a borrower who has not been required to make an immediate repayment of the outstanding amount of his loan under regulation 9(b) shall be entitled to defer making repayments of that loan if he satisfies the loans administrator—

(a)that his gross income for the month preceding the month in which he applies for deferment does not exceed the product of £1,316 and the annual adjustment, and

(b)if the loans administrator so requires, that his gross average monthly income during the three months immediately following the month first referred to in sub-paragraph (a) will not or is unlikely to exceed that amount.

I'm confused with the £1,316 figure. I thought that anyone earning less than £26,727 was eligible for deferment, but £1,316 per month is £15,792??

I'm mid-way through responding to their letter, and was about to point out that I had fully complied with Section 11, but my gross monthly income is over £1,316. My loans are all pre-1998 by the way. Help?

fermi

They are quoting the 1997 regulations that were revoked by the 1998 ones.

Very deceptive of them.

anna2007

@ evilsheep The £1,316 would have been the monthly threshold back in 1997! It's changed each September since.

evilsheep

Wow. I'm struggling to keep my letter to them 'professional' as it is, given their ineptitude so far. So presumably, I can now just point out to them that they've quoted the wrong regulations, and reiterate that I've provided all proof necessary and await confirmation of deferment.

They also had the audacity in the letter to enclose a FOS leaflet, suggesting that I refer my complaint to them if dissatisfied. Oh, I will be doing that, don't worry ...

fermi

You could possibly point out that:

- They are quoting the 1997 regulations which where revoked in law by the 1998 regulations, so not longer apply.

- By quoting incorrect regulations that no longer apply in law, they are trying to mislead you as to your rights and obligations, and to the level of the deferment threshold.

- The correct 1998 regulations only require that you "can show" that you are under the deferment limit, which you have more than adequately done, and would be able to demonstrate in court.

- You have complied with all the legal requirements required to apply for deferment.

- Erudio have no legal grounds to refuse or further obstruct your deferment.

Just my take on it. No liability accepted. lol

Up to you whether you do something like that or try their forms.

anna2007

anna2007 wrote: »

@ BorderReiver14 The 1997 regs were replaced by the 1998 regs, so don't even apply!! Instead of saying we must 'satisfy the lender', it's been amended to say we must 'show' the lender income is below the threshold, i.e. provide evidence. BIG difference!

Perhaps they could have argued that the DAF was a requirement, if the 1997 wording had remained. But it didn't. So they can't!

Difference between 1997 (revoked) and 1998 Regulations.

fermi

The Education (Student Loans) Regulations 1997 (Revoked)

[STRIKE]

Deferment

11.—(1) Subject to the provisions of this regulation, a borrower who has not been required to make an immediate repayment of the outstanding amount of his loan under regulation 9(b) shall be entitled to defer making repayments of that loan if he satisfies the loans administrator—

(a) that his gross income for the month preceding the month in which he applies for deferment does not exceed the product of £1,316 and the annual adjustment, and

(b) if the loans administrator so requires, that his gross average monthly income during the three months immediately following the month first referred to in sub-paragraph (a) will not or is unlikely to exceed that amount.

[/STRIKE]


and in contrast the ones that actually apply in law now.

The Education (Student Loans) Regulations 1998

9. Each year the lender will tell the borrower the new deferment level for the period between 1st September and the following 31st August. The borrower can defer making repayments of the loan if—

(a) the lender has not already asked him to repay the loan in full, and

(b) he can show—

(i) that his gross income for the relevant month is not more than the deferment level, and

(ii) if the lender asks, that his gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level.

fermi

Could also be worth contacting the lawyer who had already made Erudio back down several time on this?