Erudio Student Loans Conundrum

bill_face

I have a Mortgage style student loan dating from 1998-9 that is now managed by Erudio. I have been in deferment all of that time. I should be able to defer this year if my gross income is below £30,646 annually. In actual fact I made a loss this year, but they are saying they aren't accepting my deferment

Some more details: I am involved in 4 businesses, 3 of which are in partnerships. I made profits of on one of £32k, another of £5k and received a £2k dividend from a third. However, I made a loss of £42k on another , which more than cancels out the all the profits. To protect my pension entitlements my accountant suggested declaring an income of £12.5k, and saving the rest of the losses to set against future profits. 

Erudio initially accepted my deferment, but then someone phoned up to say the decision was being overturned, as I had profits totalling over £30k. I went through a discussion with the operative explaining that these profits were cancelled out by the losses. She went back to her manager, and they accepted the deferment again (i have two emails accepting deferment in Feb and April). Then they overturned it a final time. I have made a formal complaint which they have overturned, and referred me to the financial ombudsman, so I've taken it up with them, but there may be quite a wait

In the mean time they have started sending arrears notices, and have informed me that if they amount to 3 months worth then I default on my loan, and am liable for the whole sum, and lose any rights to deferment and age-related cancellation (which I'm eligible for an age-related cancellation in a few years).

So I'm wondering If I should start making some payments to avoid this scenario. They have said I can reduce the amount of the repayment. However from a legal standpoint I'm not sure how starting to make payments affects my argument that I should be entitled to a deferment. 

Any advice / opinions would be welcome

Cheers

Phil

[Deleted User]

bill_face said:

I have a Mortgage style student loan dating from 1998-9 that is now managed by Erudio. I have been in deferment all of that time. I should be able to defer this year if my gross income is below £30,646 annually. In actual fact I made a loss this year, but they are saying they aren't accepting my deferment

Some more details: I am involved in 4 businesses, 3 of which are in partnerships. I made profits of on one of £32k, another of £5k and received a £2k dividend from a third. However, I made a loss of £42k on another , which more than cancels out the all the profits. To protect my pension entitlements my accountant suggested declaring an income of £12.5k, and saving the rest of the losses to set against future profits. 

Erudio initially accepted my deferment, but then someone phoned up to say the decision was being overturned, as I had profits totalling over £30k. I went through a discussion with the operative explaining that these profits were cancelled out by the losses. She went back to her manager, and they accepted the deferment again (i have two emails accepting deferment in Feb and April). Then they overturned it a final time. I have made a formal complaint which they have overturned, and referred me to the financial ombudsman, so I've taken it up with them, but there may be quite a wait

In the mean time they have started sending arrears notices, and have informed me that if they amount to 3 months worth then I default on my loan, and am liable for the whole sum, and lose any rights to deferment and age-related cancellation (which I'm eligible for an age-related cancellation in a few years).

So I'm wondering If I should start making some payments to avoid this scenario. They have said I can reduce the amount of the repayment. However from a legal standpoint I'm not sure how starting to make payments affects my argument that I should be entitled to a deferment. 

Any advice / opinions would be welcome

Cheers

Phil

Just because someone can defer doesn’t mean they have to defer so I don’t think that would count against you. 

If you lose your appeal and you haven’t been making any payments then you’d be in a worse position that if you’d made some payments and won your appeal so maybe the latter is the less risky route to take. 

The Education (Student Loans) 1998 defines “gross income” as  income from all sources before deduction for or relief from tax or other statutory charge, but not including any disability related benefits, and less any disability related costs. I’m not an accountant so I have no idea how that tallies with how you’ve structured your incomes and losses. 

bill_face

Thankyou muchly