ERUDIO student loans help

erudioed

Have Erudio said they will accept a partial offer because as far as i am aware, they are unwilling to accept anything other than the full amount. I spoke to the same debt line last year and got the same info about the 30% fee...but Erudio were unwilling to discuss anything lower than the full amount until its policy changed when i spoke to them.

halfpricedebt

Ok. Just on the phone to them. They said to make the offer and see what happens. It may or may not be accepted on my terms to have it settled but making the offer could be worth doing. Basically, you put in the letter you want it settled and if they agree to it then they can't harm your credit file, if they did then they are breaking the agreement.

The problem is the credit file element apparently because it's not honest to tell them that the account is settled when it was partially settled - and that's probably why Erudio won't accept it but it's still worth a try.

halfpricedebt

The other thing they told me to check was whether it is the government who sets the deferment threshold or Erudio. They said I should phone SLC to find out. SLC won't tell me and indicated that it may have been set by Erudio but others here are saying it is set by the government. I'm so confused about this. Does anyone have any definitive answers for anything?!

fermi

Yes, that is more like it.

Under Information Commissioner guidelines and the DPA, the most appropriate way to mark a settlement for less than the full amount is by adding that partial marker. Does not mean the balance won't say settled/satisfied and be zeroed, but simply that extra marker goes on to show that was done via not paying the full amount in a settlement.

Applies whether you use the phrase full and final or not.

Only way to guarantee that flag is not added would be to negotiate settlement terms that specifically exclude adding that so you can hold them to it. Slightly inaccurate, but some creditors will agree. Many will not.

When trying to do settlement here on DFW etc, I always try to go beyond what that NDL and similar letters ask for, as it's not always 100% clear.

You need it in writing before you part with cash that.

Regards liability.

- Your offer is accepted in full settlement the debt, meaning you will not be liable for any remainder.
- You will not be chased for any remainder, nor will any residual balance be sold on in any way.

Regards credit files.

- The account will be marked as settled/satisfied. With or without a partial flag depending on what they are preprepared to do.
- The balance will be marked as zero or removed showing that nothing is left to be paid.

I keep the 2 issues above separate as it's easy to get the credit file issue and terminology mixed between the 2 things, which are legitimately separate issue you need to keep that way in your mind.

fermi

halfpricedebt wrote: »

The other thing they told me to check was whether it is the government who sets the deferment threshold or Erudio. They said I should phone SLC to find out. SLC won't tell me and indicated that it may have been set by Erudio but others here are saying it is set by the government. I'm so confused about this. Does anyone have any definitive answers for anything?!

BIS set it.

The announcement or BIS memo or similar was posted last year, somewhere, on one thread or another.

fermi

This FOI shows a letter sent by BIS to Eruio notifying then of the new threshold calculated by BIS.

https://www.whatdotheyknow.com/request/224604/response/557497/attach/html/5/FOI2014%2018128%20Disclosure%20documents.pdf.html

From: BIS (Redacted s40 of FOI)
Sent: 07 August 2014 14:08
To: Erudio (Redacted s40 of FOI)

Subject: Embargoed until 00:01 Monday 11th August: New MS interest rate and threshold

(Redacted s40 of FOI)

I'm writing to notify you of the new interest rate and deferment threshold for mortgage-style
loans.

From 1 September 2014 to 31 August 2015:
- the interest rate for mortgage-style loans will be 2.5%;
- the deferment threshold for mortgage-style loans will be £26,727.

(For background, you will notice that the deferment threshold has fallen slightly from last
year’s figure of £28,775. The threshold is calculated annually as set out in legislation,
using earnings data published by the Office for National Statistics. The threshold has
changed in line with earnings growth (measured by Average Weekly Earnings, AWE)
between April 2013 and April 2014. The new interest rate is defined as the RPI for March
2014, which was 2.5%).

halfpricedebt

Brilliant. Thanks fermi.

I'm going to make my payment for the 10th May so I don't go into arrears and then send them a letter. I've got the full amount borrowed from someone else which means I will owe that individual a much reduced monthly repayment without the hassle should the full/final settlement not work out in my interests. I want to pay them off so I don't have to deal with them anymore but I want to make sure that as much as Erudio got a good deal when they bought the loan book at a reduced rate, that I also get an equivalent good deal - unlikely I know but if I don't try and hand over a stack of cash to them, I'll always wonder if I could have got a better deal.

halfpricedebt

Does anyone know what the current interest rate is on pre-1998 loans? Just want to check that the info Erudio gave me is correct.

fermi

http://www.moneysavingexpert.com/students/student-loans-repay#tabTwo

Loan type: Old style "Mortgage" type

Current interest rate: 2.5%

Likely interest rate from Sep 2015: Every September the rate changes based on March's inflation (RPI) rate.
We know 2015's is 0.9% so for pre-1998 uni starters the rate is likely to drop from 2.5% to 0.9%. For more info, read the student loan interest rates to fall news story.

How the interest rate is set: It is set for a year every September based on the rate of RPI inflation the previous March - though the actual rate is only officially confirmed each August. (If you're new to interest rates see our Interest Rates Beginners Guide).

halfpricedebt

Cheers fermi. You've been a big help. I've made them the payment that was due and will now look to get a prospective full and final offer letter to them. If they won't settle without the partial settlement flag then I'll pay them off and owe my generous family member for the next few years.