Student loan

Simple_student

Hi
After a long war of attrition I have just agreed a settlement of my outstanding student loan which I am very happy with, however although they have accepted my offer in "full and final" settlement they say they will record it in my credit file as partially settled. I smell a rat!!!
Is this legit?
Simple student

[Deleted User]

If a loan isn't settled in full, yes.

I'm not aware that student loans are treated differently, but I'm sure someone else will.

Simple_student

Thanks for that zx81......it seems that "full and final" can actually mean "partial"
But then nothing about the student loan companies activities seems straightforward

Pixie5740

It's a "full & final" settlement in that SLC are accepting the money and won't pursue you for outstanding monies owed any further. However, you haven't settled the whole debt only part of it so what has been recorded with the credit reference agencies is correct.

https://debtcamel.co.uk/ff-credit-record/

Simple_student

But if it is full and final.. There aren't any monies owed.
As for the Dickensian quote you are probably correct..Erudio definitely operate in the same world as mr mcawber

Pixie5740

:wall: read the information in the link I gave you.

Simple_student

Thanks pixie ...I had read the link maybe I am obstinate but if you challenge someone and they back down it demonstrates that they accept that they were wrong to take the stand they took in the first place I am now minded to withdraw my offer to settle

Pixie5740

Not necessarily. Sometimes people (or organisations) just decide to cut their losses and takes what's on offer.

Simple_student

Pixie first of all thanks for taking the time to help..
In the case of Erudio they paid the government far less to take over my loan than they have settled for ...in this respect there are no losses to cut they are on the make. In my case I would have been paying back far less than the original loan if I had taken their offer so I suppose that's win win.
Incidentally your mcawber quote recommends to all prospective and penniless students that it is better not to get educated than to take on the "misery" of a student loan ...if Erudio are involved that's worth considering.
NEVER A LENDER OR A BORROWER BE

Pixie5740

I know that the old style student loan book was sold off to Erudio and that it was sold off for a fraction of its book value, that's generally how debts are sold off. The government might have got less than the value of the debts but they would no longer have to spend money administrating the loans, trying to recover the money owed to them or tracking down people who could quite easily have continued deferring if they just bothered to complete the bloody form each year. It was a win-win for both parties.

The Mcawber principle is over simplistic. It not only applies to students but anyone with a mortgage. However, I think most people will agree that a mortgage is a good debt because you've got to live somewhere. You either rent a property or you rent the money from a bank. Similarly student loans can be a good debt. I had student loans, without them I probably wouldn't have been able to complete my engineering degree. Without my degree I doubt I would have achieved my current earning capacity so in my case student loans offered a good return on investment.

I think the general idea of learning to live within your means is a route to happiness though.

Simple_student

The post 2000 student loan book is about to be flogged off too with govt ministers giving similar assurances to the ones they gave for the old style loans; viz you won't have to pay anything back until you meet an earnings threshold. Students beware! ..result misery!