Erudio Student Loan

catflap11
catflap11 Posts: 98
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Hi, I have been doing lots of digging but cannot find an answer, but broadly I have 4 deferred mortgage style student loans taken out between 1993 and 1997 with a total balance of £2589 to repay. I have now exceeded the threshold for repayment and I have been informed that the monthly repayment amount is £130, I was under the impression that these loans need to be repaid over 60 months, therefore this seems very high?

Have I missed something or are Erudios calculations wrong?

Thanks in advance
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  • Lungboy
    Lungboy Posts: 1,953
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    How old are you and when are they due to be written off? There have been some examples of Erudio dividing the balance by the number of months left to write-off, rather than by the number of months left to pay. Also, I *think* that if you had 4 or more loans it's paid over 85 months rather than 60.
  • catflap11
    catflap11 Posts: 98
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    Hi, im only 41 so they aren't due to be written off for 6 years (based on the 25 year rule). Thanks for that, I think a call is in order to Erudio as I am hugely confused!
  • Lungboy
    Lungboy Posts: 1,953
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    I'd wait until one of the more knowledgeable people (Fermi et al) reply, I'm terrible for misremembering this stuff. Also, I'd be loathe to ever ring Erudio, you're better off dealing with them in writing.
  • Well, my balance with them is over £5500, and they calculated that my repayments would be £96.56 per month if I passed the threshold for repayment, so the amount they have told you is much too high. Fortunately Erudio have now accepted my application for deferment, but I had unnecessary hassle with them this year due to the forms being sent out late (see the main MSE thread on Erudio for more on the problems quite a lot of people have been having with them recently).
  • Banksters
    Banksters Posts: 34 Forumite
    catflap11 Ask Erudio to send you copies of the original agreements you signed. And double check that the credit given, matched what you signed for. If it does not match, it is not enforceable.

    I would bring to their attention also, that there were problems with the SLC Annual Statements not being compliant with the Consumer Credit Act. They will be due you a refund of some interest because of that, but have covered that up at the moment.
  • Pluthero
    Pluthero Posts: 222
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    £2589 over 60 months = 43.15 per month.

    I would only deal in writing also. Get the them to write it down, though I suppose they have sent written evidence quoting that figure which is good. Complain to them about their ACCOUNTING/BASIC MATHS SKILLS and if you do not get any joy then OFF to the FOS for compensation and a £550 fine for Erudio/Arrow Global :)

    #chancers

    HTH and Good luck
  • anna2007
    anna2007 Posts: 1,182 Forumite
    Have you made any repayments at all since you took out the loans? If so the number of repayments already made is deducted from the 60 months, to give the remaining number of repayments to be made. This would push up the monthly amount, as you'd be paying back over a shorter time.

    With interest at 0.9% (the RPI rate being applied to our loans for this year) added to your current balance, Erudio have calculated your monthly repayment amount over about 20 months. So unless you've already made 40 repayments over the life of the loans, Erudio's calculation is way off the mark. Assuming you've made no previous repayments, your monthly amount should be around £45!
  • catflap11
    catflap11 Posts: 98
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    Hi, thanks for all your helpful replies. I haven't made any repayments to date so I have dropped them a friendly email asking for clarification on all the points you guys have suggested. I will report back when I get a response! Thanks again!
  • Lungboy
    Lungboy Posts: 1,953
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    edited 27 April 2016 at 8:38AM
    Anna, isn't it 85 months for 4 loans or more? Or is it 5 loans or more to get the extended repayment plan?

    edit: I'm mixing up my digits, it's 84 repayments for 5 or more loans.
  • catflap11
    catflap11 Posts: 98
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    Right, had a long fraught conversation with the morons at Erudio. Basically they are stating that the 25 year term is up in 2018 and as a result the payments have been calculated over that timescale. Initially they stated that the whole amount had to be repaid by this date (which thanks to you guys I know is rubbish) then the manager I spoke to claimed to have no knowledge about any 60 month repayment period!

    When I called her out on this and asked her to google it, she came back with some gibberish about months dropping off my repayment term and I no longer have 60 months to repay. The term now is to the end of the 25 year period!

    Please reassure me that they are telling me a load of old porkies as I have raised a formal complaint and asked for copies of my loan agreements.

    As far as I understand, as I haven't made any repayments I still have 60 months over which to repay the loans, the 25 year cutoff simply means that if the whole amount hasn't been paid by this time the loan ends? is this correct? many thanks again
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