Erudio Student Loans settlement offer.

zippygeorgeandben · 9 September 2018 at 11:34AM

Dear MSEers,

My partner received an interesting letter in the post yesterday. It was from Erudio regarding his currently deferred account.
He has yet to make any payments on his university loan as he has never received a salary high enough to go over the threshold. However, the letter state that they would 'like to offer you the opportunity to partially settle your loan account balance for a single payment of £3811.99.'

The balance is currently at £7623.97 and if he contacts them and pays £3811.99 before 29/09/2018 they will write off the difference (£3811.98) so basically, if he pays 50% of it, they will write off the rest and the loan will be closed.

The letter says that he can discuss or accept the offer (perhaps meaning they might accent a different offer to 50/50?

What do you all think about this? Why would they offer a partial settlement? He graduated from university in 2000. Is it because it's close in time to being written off? Is there another reason they are offering this? Is this usual for them to offer out to people who are yet to make a single payment? If he was to earn over the threshold at some point would it be best paying this off? What would you do?
Thanks for reading.

CakeCrusader · 9 September 2018 at 11:49AM

It's 25 years until these loans are written off, so that would be 2025. If he will never reach the repayment threashold then it's pointless paying any of it off, even at 50%. He could just keep deferring until 2025 and save you both 3.8k. They probably know he'll never earn enough to start repayments so this is the only way they can get some cash from their 'investment'.

zippygeorgeandben · 9 September 2018 at 12:14PM

The three loans were taken in 97, 98 and 99.

CakeCrusader · 9 September 2018 at 12:30PM

They are written off 25 years from the date of the last loan agreement; https://blog.moneysavingexpert.com/2017/05/will-student-loan-written-off/ so 2024. You can either defer them for another 6 years and it will be wiped, or pay half of it now. Even if he does earn over the threashold next year or before 2024, it still gets wiped in 2024.

zippygeorgeandben · 9 September 2018 at 1:47PM

Thank you CakeCrusader for your replies.

chaosiscopilot · 20 September 2018 at 7:18PM

I got the same letter. I was worried it was a scam but I gave them a call and it isnt. I'm near the threshold so it seem like a good deal for me.

Ljfm · 20 October 2018 at 11:21AM

I'm in a similar situation and have received a settlement letter, today. I have 4 loans, 97, 98, 99, and 00 and have never reached the threshold payment, so have always successfully deferred.
Hoping someone can answer my questions as I wasn't very sensible back in the day, and haven't kept any of my loan paperwork!
(1) As I started uni in 1997 do all my loans come under the pre-98 agreement?
(2) Do the loans expire one by one or from date of graduation?
(3) I know the threshold for payment has recently increased to above 30k, and there's a small chance I may be earning that in the next 2-3 years (although I'm aware threshold may also increase). If I did start having to repay, but then I hit the 25 year expiry date, do i have to continue paying (because I've already started) or does it still expire?
Thanks for any help. I've been googling trying to find the answers for ages and hoping someone out there is a bit moor knowledgeable. Just trying to work out what's best financially. &#55357;&#56396; &#55357;&#56503;

Ljfm · 20 October 2018 at 11:40AM

As an add on to my message above. I'm looking through my paperwork and there is a chart with my loan number, amount borrowed, loan term and credit provided. The heading above my loan numbers says 'mortgage-style loan number' so I think that's answered one of my own questions about whether the loans are different types or not. So because I started uni in 1997, all my loans are treated as pre 98 loans. Yay!

Lungboy · 20 October 2018 at 12:01PM

Ljfm wrote: »

I'm in a similar situation and have received a settlement letter, today. I have 4 loans, 97, 98, 99, and 00 and have never reached the threshold payment, so have always successfully deferred.
Hoping someone can answer my questions as I wasn't very sensible back in the day, and haven't kept any of my loan paperwork!
(1) As I started uni in 1997 do all my loans come under the pre-98 agreement?
(2) Do the loans expire one by one or from date of graduation?
(3) I know the threshold for payment has recently increased to above 30k, and there's a small chance I may be earning that in the next 2-3 years (although I'm aware threshold may also increase). If I did start having to repay, but then I hit the 25 year expiry date, do i have to continue paying (because I've already started) or does it still expire?
Thanks for any help. I've been googling trying to find the answers for ages and hoping someone out there is a bit moor knowledgeable. Just trying to work out what's best financially. ��

1) Yes, they are all pre98 loans
2) not 100% sure but I think they are wiped collectively when your youngest loan reaches the 25 year mark, and it's 25 years from receiving the final installment from SLC, not from graduation.
3) it's wiped after 25 years as long as you're not in arrears. If you haven't fully paid it back then that's tough luck on Erudio.

Mermaidmum · 23 October 2018 at 6:36PM

Hi, I'm in the same position as Lungboy, in that my loans are 97, 98, 99 and 00. However last year I took out an Advanced Learner Loan to go back to college with Student Finance England. Would this have any impact on these previous loans? Would it mean that they would now only be written off 25 years after 2017? TIA

Lpod · 23 October 2018 at 10:45PM

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

Erudio Student Loans settlement offer.

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