'The Government has sold people out over Erudio student loans' blog discussion

JimmyTheWig

Well done, Martin, for having the courage to say that you've changed your mind on this.

ericctheking

JimmyTheWig wrote: »

Well done, Martin, for having the courage to say that you've changed your mind on this.

Yes, I second that.

Actually a student loan done right is a good loan to take to benefit yourself by going to university esp. with earnings thresholds for repayment etc. I'm sure if they were sold as just normal loans a lot of people would seriously consider weighing up going to university or not (esp. now with the fees so high)
Martin's advice has always been good - for example for whatever reason (accident or something) you don't earn a high amount you don't have to pay back but if you become a high flying Doctor for example you can pay it back easily and you have really benefited from the investment of education in yourself.

BUT
The selling off is a real game changer.
All that we thought we knew is changing. If you have kids what advice do you give them about university and student loans?
Also have you witnessed the steady drip of articles in the press from the government about how student loans aren't going to be paid back? There seems to be a softening up of the public to turn the screw on ex-students.
There attitude being put out there is "you borrowed the money so you should pay it back"
The loans were never (and even as we speak now) sold like that.
It was "if you earn the money from higher earnings that the education might give you then you pay it back, if (for whatever reason) that doesn't happen then don't worry"
The worrying thing is that the government has inserted clauses into newer loans that lets the threshold/interest rate etc. be changed.
This topic isn't just for people dealing with Erudio (or should I say Capita) but for all students past, present and future!!!!!!!!

ericctheking

Someone twittered Martin saying this over the student loans situation.

"there is no such thing as a free lunch. This is public money stop supporting those who seek to avoid their liabilities"

This type of thinking is wrong on so many levels;
No one is trying to avoid their liabilities.
If the loan was sold as a regular loan many people wouldn't have taken it but the key is it wasn't sold as a regular loan (and they still aren't)

Also it is no longer public money as the government has nothing to do with these loans anymore, the money (erudio con or threaten people into paying) will go to Delaware! Which is like the USA's jersey or Isle of Man (ie. a tax haven)

erudioed

Simon Read's on Martin Lewis' article, seems two of the 3 experts following things closely have drawn the same conclusion:
http://www.independent.co.uk/money/loans-credit/student-loan-sale-is-a-mess-9330503.html

JeLaw

stormclouds wrote: »

I had a letter from Erudio saying my student loan had been sold to them. At least I think that's what it said. It could have been written in Esperanto for all I could understand. What I did understand was that there was meant to be a form for me to fill in and post back. Unfortunately I didn't get one of those forms so they won't be getting it back.

I'm now terrified because I was late in sending back my deferment to the Student Loan Company. Mine ran out at the end of April and I did send the deferment form back to the SLC just before that date but it was due back by the second week in March. I've been really ill and unable to cope with anything and my carer has been equally ill so nothing has gotten done. I'm having panic attacks about this and the suicidal feelings are getting worse. Is my credit rating going to be trashed? Will these Erudio people take money can ill afford from my account? I'm seriously considering closing my bank account and moving to a new bank just in case. I'm not sleeping properly. I'm plagued by nightmares and my paranoia is rather out of control. I don't know how to contact these Erudio people because the letter has gone walkabout.

(Telling me to contact my GP or mental health services is a waste of your time, their time and my time. There's nothing they can do for me which is why I was discharged in 2011. Medication does nothing and there aren't any illness specific talking therapies available in my part of Scotland. There's no one can help me.)

I'm so sorry to hear how you're struggling at the moment, and I hope things get a bit better for you.

Would you be able to get any help from adult social services? Especially as your carer isn't well enough to help you with this at present.

Is it possible that SLC have already deferred your loan for another year? That might explain why Erudio didn't include any deferment forms with their letter to you?

As you've already sent your deferment application to SLC, you should contact them. By letter sent recorded delivery. Explain why it was returned slightly late and ask what's happened. Have they received it? Has your deferment been processed?

Also, write to Erudio (again, recorded delivery) explaining your situation - that because of your illness (and your carer also having been unwell) your forms were returned slightly late to SLC, and you are now waiting to hear back from SLC with confirmation of your deferral. Perhaps include a copy of the letter you send to SLC requesting this confirmation/update.

JeLaw

ericctheking wrote: »

The selling off is a real game changer. All that we thought we knew is changing. If you have kids what advice do you give them about university and student loans?
Also have you witnessed the steady drip of articles in the press from the government about how student loans aren't going to be paid back? There seems to be a softening up of the public to turn the screw on ex-students.
There attitude being put out there is "you borrowed the money so you should pay it back"
The loans were never (and even as we speak now) sold like that.

That attitude "you borrowed, you should pay it back".... Perhaps in that case, there needs to be a complete change in attitude from the government and media in encouraging an increasing number of people to go to university.

BIB. Personally I'd advise any prospective student to think very hard about whether going to university is something they really want and/or need to do. Is there an alternative route into their chosen career? Perhaps it might be worth taking a few years out before returning to education to allow time to really think through all their options. Maybe it might be worth studying part-time and funding the study through work. All these are options I would advise thinking about.

ericctheking wrote: »

Someone twittered Martin saying this over the student loans situation.

"there is no such thing as a free lunch. This is public money stop supporting those who seek to avoid their liabilities"

So Erudio should not be supported or encouraged by anyone - the public, the media, and/or the government. Since it appears, judging by their actions and incompetence so far, to be Erudio who are trying to avoid their liabilities - their liability to stick to the original terms and conditions and therefore....not insist on direct debits being place for deferred loans, not insist on deferrers using Erudio's form, not to take money from accounts of people in deferment, not request information not required under the terms of the loans, i.e. P60s....And surely another liability is to ensure those applying for deferment have their applications processed fairly - including in a timely manner. A few small delays is one thing. Large-scale continuing delay and loss of correspondence is quite another.

Those of us entitled to deferment are NOT trying to avoid liability. Anyone earning under the threshold for repayment has no liability to repay - and is perfectly entitled to deferment. This was one of the key selling points of these loans - that you would not have ot repay if you weren't earning enough. Which can be for various reasons - some professions pay fairly low, some people have become ill or have a disability, some aren't working (or working part-time only) due to parenting or caring responsibilites, some have been made redundant, etc, etc.

If the loan was sold as a regular loan many people wouldn't have taken it but the key is it wasn't sold as a regular loan (and they still aren't)

Absolutely. Although of course at least a regular loan can be written off in bankruptcy.

Also it is no longer public money as the government has nothing to do with these loans anymore, the money (erudio con or threaten people into paying) will go to Delaware! Which is like the USA's jersey or Isle of Man (ie. a tax haven)

Apologies for my mess of quoting and replies.... I still haven't quite got the hang of multi-quoting!

fermi

Reading other threads, some people claim to be being told by Erudio staff that they are 46!! weeks behind schedule with the deferments? :eek:

Surely must be some misunderstanding there, otherwise this this complete train wreck of a situation could continue for the best part of a year!

JeLaw

fermi wrote: »

- Formally complain to Erudio that it is their fault your deferment was refused, as you did all you should. Tell them you will be going to the FOS.
- Talk to the FOS http://www.financial-ombudsman.org.uk/consumer/complaints.htm who may be able to write to them now or take on the case once Erudio has had a chance to respond.
- If Erudio take money they are not entitled to or harm your credit file as a result of their incompetence, then also make the the subject of a formal complaint.

Basically you should not have your situation or credit file harmed due to Erudio's pitiful failings and bungling. The FOS is there to take a complaint to if Erudio don't sort it out in the end.

Thanks, Fermi.

I recommend anyone stressing about Erudio's continued delays to their deferment processing, heeds this advice.

My deferment isn't due for renewal until September. But I don't have a huge amount of faith in this mess being sorted by then.... I certainly intend to follow Fermi's advice if they attempt to claim I'm out of deferment - due to their delays.

MrsAverage

This is sending ripples of concern to those on the current and earlier systems too. What if they sell off the current loans that have the much higher interest rate too? I always thought it risky for a student to sign a contract that was so open - ie terms and conditions can change at any time to anything but most have no option but to sign. I am pleased to see Martin saying he was wrong - I think he will be proved to be wrong on the post 1998 and post 2012 schemes too as these get sold off.

ericctheking

MrsAverage wrote: »

This is sending ripples of concern to those on the current and earlier systems too.

Yes, as you say these people have small print that the terms and conditions can be changed any time. David Willetts (the government minister responsible for the sell off) even mentioned this himself.
Although if deferment ran through the tax system in the Erudio loans (as is the case with latter loans) there would be none of this mess. Although they would still give it out to people working overseas!