Erudio Student Loans settlement offer.

badmemory

When working out how much to pay off when you don't need to it is worth taking into consideration how much they paid to buy your loan. So why pay them 50% when they paid around 10%. They say god loves a trier, well whilst god may love a trier & even maybe a usurer, jesus certainly didn't & neither should we. Atheist by the way who believes that anyone who needs a religion to tell them right from wrong needs - well this isn't the thread for that!

badmemory

Lpod wrote: »

I paid my student loan off early

Can I get any cash back for doing this? To this day i am.not earning over £20000

Why did you do that - and very unlikely. They rely on people like you for their ill gotten gains. The companies who buy these loans mostly seem to appear to scam you to pay them off when you don't need to.


You could always try complaining "IN WRITING"

Lungboy

badmemory wrote: »

When working out how much to pay off when you don't need to it is worth taking into consideration how much they paid to buy your loan. So why pay them 50% when they paid around 10%. They say god loves a trier, well whilst god may love a trier & even maybe a usurer, jesus certainly didn't & neither should we. Atheist by the way who believes that anyone who needs a religion to tell them right from wrong needs - well this isn't the thread for that!

I completely agree. I'm unlikely to get anywhere close to deferment so there's zero interest in paying off my loan, even at a discounted rate. Deferment was actually very easy this year so even that stress has mostly gone.

Lpod wrote: »

I paid my student loan off early

Can I get any cash back for doing this? To this day i am.not earning over £20000

I very much doubt it. You took out a loan, you paid it back. That's it.

Anybodyoutthere

Hi I too have had the same offer letter. I called them to discuss repaying it within next 6-8 weeks when could raise funds and now am so confused.

I was told that (a) the loan can be settled at any time and to just call up when ready for an offer (b) they will conduct an 'affordability' check on me to make sure I can repay it without it impacting my finances (c) settlement will affect my future credit rating.

Does that mean that this is actually a sneaky way of getting me to pay up as I have deferred since last loan taken out in 01? They will presumably check on my finances to squeeze as much out of me as possible and it could affect my ability to get a mortgage in future? I was told that the affordability was to check that I could afford to repay it before they accept an offer.... I pointed out that I would have already have borrowed the exact settlement money to settle it by that point so bit useless? Is there any way to offer settlement and them NOT look at my finances? The person I spoke to said they had to do this as regulated by the FSA...

Lungboy

If you have been deferring why would you rush to pay it off? I also don't understand, they are offering you the settlement, not the other way, whether you can pay or not is nothing to do with them.

phleeps

Ok, so I received the same letter, and followed this up with a phone call to them
I owe just over £10k, and have been deferring since I graduated in 2000. They have offered me £5,300 to settle, but I told them the maximum i could pay is £4000 - which they agreed (maybe I should have pushed for lower, but too late now!).
The reason I am considering going for this is that since being granted my most recent deferment for 2018/19, I got a great new job which pays me more than next year's threshold will be, so come June 2019 I will have to start paying off the full debt at £200 per month.
If I were still earning well below the threshold then I obviously wouldn't consider this, but settling now will save me £6,600 in repayments over the next five years - a no-brainer!
My only reservation is the impact on my credit rating. My rating is generally pretty good, but we are thinking of moving home in next couple of years and I'd be worried about how this would be affected.
They told me, however, that at present they do not declare clients' details to credit reference agencies at present, and have no plans to do so as yet. There's nothing to say this couldn't change in a year or six months, though.
My overall thinking is that it would be better for me to be free of this debt when going for future credit, and take a chance on whether and how this settlement will be marked on my credit file. I've been reading up on the latter and opinions are varied but generally, taken alongside my good credit history, I think it shouldn't hurt me too badly




That's my take on it. I have to let them know by start of week if i want to go ahead, so would be interested to hear what others think.

Lungboy

Odd that they are offering such wildly different discounts. That sounds close to 50% initial offer where I was offered 30%.

In that situation with a new job over the threshold i'd be very happy with getting rid of the loan at a low rate.

Katrina76

I too got a settlement offer. I graduated in 1998 ... so loans will expire in 2023. Now if I turn down the offer and then meet the threshold between now and 2023 (I am quite close) will I only pay up until 2023 or will I have to keep paying until it’s all paid up?

Lungboy

It should be written off.

Welsh9

Hi All,
With regards to this offer from Erudio, with regards to student loans taken out 1990 - Early 2000's these come under the mortgage style student loan criteria, rather than the Income contingent student loans nowadays, with regards to the loan they will get written off 25 years from the date of the last signed agreement so if you have 1995, 96 and 97 and the 97 was signed in the academic year 97-98 it may be a case that you signed it early 98, I would recommend phoning your loan administrator to confirm this as these dates would be on their systems, other loan criteria is if the loan was borrowed before age 40 written off at 50 or if borrowed after 40 written off at 60 or if you die, with regards to these student loans the repayment term if 4 loans or under is 60 month's = 5 years however if 5 or more student loans you then get 84 month's = 7 years to repay
This repayment term calculates from each time you have ended deferment so if you had a year out of deferment in 2007 or another previous year this would be deducted from your overall term, with regards to the loan if you have always deferred upon exiting deferment you normally have a final payment date in line with your repayment term whether 5 or 7 years

For example, you have a 1995 student loan signed on the 20/02/1996 you have deferred until 09/04/2019 and your repayment term starts as your now over the threshold your loan would be due to be paid in full by March 2024 if you don't defer in the meantime (in the instance you defer in the interim this then further extends your repayment term by another year)

The loan will be eligible for write off 20/02/2021 meaning you would then only repay from 10/04/2019 - 10/02/2021 which would equate to you only paying 2 out of 3 years or less if you fall back under the threshold in the interim and will have the remaining balance written off

All I would advise is these terms and conditions are subject to you not being in arrears so if your account is in arrears I would highly recommend you bringing the account up to date or you would have to pay the monthly instalment until the arrears are paid in full potentially costing you more if you was to pass your loan write off date

Another thing I got advised after speaking with a very helpful lady at Honours Student Loans is if my account was in arrears and i was only able to maintain the monthly instalment this would mean that by 2021 my balance would have been due in full so March 2021 I would have had to pay both the arrears and that month's instalment so she advised if I ever fell into arrears to set up the monthly instalment and a small arrangement towards the arrears which will then reduce the lump sum in the March 2021

Overall I think Erudio are trying to make extra money on loans they can see have always been deferred with no intention of repayment i have loans with both erudio and honours and I immediately contacted honours to check this as was looking to see if they would do the same and they advised me to save the money as I'm better off deferring and having the full balance written off as I assume I will remain under the yearly income threshold, I'm glad as this money has now been used to get my daughter on the property ladder!