ERUDIO student loans help

Tommygunn

Oh, is there a link to that info anywhere?

Tom.

BorderReiver14

yes... three months grace as it were. If Erudio are at fault though and you take action (FOS and/or court) then that three month grace may not count. I have been several months in arrears but the FOS have asked Erudio to 're-work' my account to wipe arrears as if I were in deferment when I made my application.

Mr_McGuffin

From yesterday's Independent:

http://www.independent.co.uk/student/study-abroad/news/student-finance-loans-brexit-article-50-illegal-and-unenforceable-says-top-lawyer-a7410261.html

Ed-1

Mr_McGuffin wrote: »

From yesterday's Independent:

http://www.independent.co.uk/student/study-abroad/news/student-finance-loans-brexit-article-50-illegal-and-unenforceable-says-top-lawyer-a7410261.html

I read that article and it's referring to post-2012 income-contingent student loans, but has several inaccuracies.

For example, this supposedly top lawyer has “...argued that the government loans are sold deceptively, tying students into contracts with rates that are closer to 6.6 per cent.

This is because the 4.6 per cent rate cited is compounded monthly, meaning every month unpaid charges are added on to the original loan.”

This is wrong in 2 ways. Firstly, the interest rate is an AER so monthly rate is a bit lower to take into account compounding (as with any other account that accrues interest at an AER monthly). Secondly, interest is frozen on accounts at the start of each tax year so interest on repayments does not compound due to the delay in receiving the repayments as, once received from HMRC, the repayments are credited to the account as if they were received monthly.

This lawyer also says “extortionate funding costs and unfair terms are forced upon students in unknown ‘agreements’ which break the law.” This is also wrong in 2 ways. The agreements are not unknown. Students sign their loan agreements. I've posted one here. And the agreements do not break the law as they are not commercial loan agreements, and the Sale of Student Loans Act 2008 exempts them from consumer credit regulation. Their repayment terms are also income-contingent - contingent on the ability to pay (i.e. the most generous in the country).

The lawyer says “when introduced in 1998, government student loans were relatively fair,” said Ms Clarke. “Since then, they have changed so much they have become illegal: tested in court, they’d be ruled unenforceable.

On top of this, hidden amongst students’ expenses is a hefty portion of investor profit: student loans are lining the pockets of third party fat cats,” said Ms Clarke.

Impoverished students use their loans to pay returns to the wealthy, at ruinous cost, without even knowing they are doing so.”

The student loans this lawyer is talking about are still owned by the Government!

“Theresa May must repay students the amounts they overpaid David Cameron’s government.”

Post-2012 student loans have only been eligible for repayment since April 2016 so these students didn't overpay anything to David Cameron's Government!

This lawyer clearly doesn't understand how these student loans work (sadly true of most people!). Mortgage-style loans on the other hand...

BobbyD123

I have now received a Termination letter with 7 days to pay the remaining balanced even though I qualify for deferment as I earn under the threshold. Will they take me to court as I don't have the money to pay the full balance. This just does not seem right, should I complain to them and the FOS. Any help is gratefully received.

Brooker_Dave

BobbyD123 wrote: »

I have now received a Termination letter with 7 days to pay the remaining balanced even though I qualify for deferment as I earn under the threshold. Will they take me to court as I don't have the money to pay the full balance. This just does not seem right, should I complain to them and the FOS. Any help is gratefully received.

Official complaint, and then, when they ignore that, FOS.

If you earn under the threshold as outlined in the original loan terms, how would a court side with them?

BobbyD123

Brooker_Dave wrote: »

Official complaint, and then, when they ignore that, FOS.

If you earn under the threshold as outlined in the original loan terms, how would a court side with them?

Even though I have Arrears and had Notice of Default? They just have not sent me a deferral form to even apply for deferment other than the original mistake of a form three years ago for which I sent back by own letter and payslips. Should I email them to complain and ask for a deferral form now even though it's too late to defer?
What a mess eh, never had problems with SLC!

Brooker_Dave

BobbyD123 wrote: »

Even though I have Arrears and had Notice of Default? They just have not sent me a deferral form to even apply for deferment other than the original mistake of a form three years ago for which I sent back by own letter and payslips. Should I email them to complain and ask for a deferral form now even though it's too late to defer?
What a mess eh, never had problems with SLC!

Have you complied with the terms of the loan?

Do you earn under the threshold?

Did your troubles only start when your loan was gifted to some loan sharks working out of a tax haven?

Is a judge really going to ignore the agreement you signed and side with the loan sharks?

DeeGee75

Can I drop in here as well?

I've just received a request to repay in full- loans from 1994-98. I was earning little enough to defer apart from four years where I was eligible for my loans to be repaid under the Repayment if Teacher's Loans scheme.

I have never received a request for payment from Erudio - I have a number of letters saying that my contractual payment amount is £0. I have also never been sent a form to defer. In fact, I heard nothing from them for a while when I suddenly, at the beginning of the year, got a huge pile of old letters sent through.

As luck would have it, as of next month I will be both above the threshold to repay and a savings plan will mature, so I'm going to knock the loan on the head. I'm quite keen to give them a bit of grief, though; pay them what I acknowledge that I owe them and liable to pay; and then stick it to them.

plong979

Update:

So hadn't heard anything since September annual statement, not even a letter from Erudio to say they are reporting me to CRAs. But the other day that changed and Crapquest sent me a text about a "personal matter" that needs sorting out today and then tried to ring. I blocked the number and if they want me then they can write to me. Funny how Erudio and Crapquest have my mobile when I've never gave it to them or the SLC.

Erudio said they passed on my "debt" in June/July and it's taken till November for them to get in touch. Definitely needing sorting out that day then. They must have needed some cash for the xmas office party or something. Also the first contact off them is via a text and not even a letter stating they have taken over my account along with relevant details. So professional.

Thanks government for doing this to me, appreciate it.