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I've been told by student loan company to pay £3045 by 7th November. Panic is not the word!

72 replies

Hidinginthebath · 16/10/2018 21:26

Sorry posting here for traffic as didn't get a response in Money.

Erudio Student Loans manage my account. Got a letter today saying they are terminating my student loan agreement. The account went into arrears in 2014/15 because I had to flee domestic abuse and then my physically abusive exH withheld my post for a year, at this time the gOv sold my student loans to Erudio.

Sorted it and have been paying a monthly amount since; £100 per month in 2016 and then my contractual payment of £138 a month since 2017. They've just decided to end my agreement! I'm in shock. How on earth can I find £3045 in 20 days??

OP posts:
Slimtimeagain · 16/10/2018 21:28

What does the contract say? Have you called them up. There are many people who wouldn't be able to magic that money up from no where, so they can't just end it..

Spinterest · 16/10/2018 21:29

I would do the following: Look on Money Saving Expert Forums - they're pretty actice and I reckon someone will have gone through this already, then contact Citizens Advice, I would.also ring the company and explain and see what they offer you. If none of that is any use then contact your MP.

Hidinginthebath · 16/10/2018 21:33

I rang them as I wanted to check that they hadn't made a mistake. Nope, they are terminating the contract. The man on the phone kept repeating that as I was in arrears I had broken terms of contract and they have made the decision to terminate my account. When I asked if they took me to court would any judge agree that I was not doing enough to settle my account by paying £140.00 a month he said 'We are not saying you are not doing enough'? So I asked how they propose to proceed given I don't have 3K to pay in 20 days and he said after they have terminated the account they would seek to 'continue to work with' me. When I asked why a monthly payment plan of £140 isn't considered as 'working with' me he said because that isn't paying off my arrears. I actually would be eligible for deferment now as my income is below the threshold this year...

Why would they terminate the account of someone who is already paying them monthly, on time and they are earning interest? Any ideas anyone? He wouldn't give me an answer when I asked what the proposal is after terminating my account.

OP posts:
Hidinginthebath · 16/10/2018 21:35

I've been on MSE and left a post but nobody has answered. I've been online 4 hours and not read of this happening (where you have an active repayment plan but they will pull the plug anyway...)

OP posts:
ButchyRestingFace · 16/10/2018 21:39

Can you afford to seek legal advice? It's hard to imagine a court would tell you to repay the full amount if a) you don't have the money and b) have been working to pay the arrears plus the debt.

Hidinginthebath · 16/10/2018 21:41

I'm buying a house and my conveyancing fees and deposit are breaking me financially. I can't afford another solicitor at the moment. Someone online said to ring national debtline, hoping they'll help tomorrow. Just looking at a sleepless night Sad

OP posts:
RandomMess · 16/10/2018 21:41

I would try speaking to the debt charity step change see if they could be included in some sort of overall repayments plan as you seem the now be on a low income?

Once you default you can't defer Sad

ButchyRestingFace · 16/10/2018 21:42

Once you default you can't defer sad

Is that a new thing? I'm sure I've deferred after defaulting.

RandomMess · 16/10/2018 21:43

Cross posted with info about you buying a house!

Allthewaves · 16/10/2018 21:43

Contact citizens advice.

LittleOwl153 · 16/10/2018 21:43

I'm guessing as I don't know anything about this. But could this be a way of replacing your student loan with a standard interest bearing loan direct to their company - not under the student loan regime? Definately get some advice.

Hidinginthebath · 16/10/2018 21:44

I'm a lone parent of 3dcs, I've only got 4K of student debt, I self financed my pg dip and Masters. I work FT. Wtf do I do? I can't do anymore to support myself but now I'm getting threatened? Seriously fed up about it.

OP posts:
Hidinginthebath · 16/10/2018 21:46

I pay them £140 a month and that's a struggle but I have managed. I don't really know how asking step change to come up with a new plan will help? My affordability test will come back with being able to afford less!

OP posts:
beccii161016 · 16/10/2018 21:50

I'd go to your local Citizens Advice. It's free and they're brilliant. I'm sure they'll have heard of a similar situation before and they'll have some valuable advice for you. Good luck Smile

PanamaPattie · 16/10/2018 21:51

Don't speak to anyone again on the phone. You have no audit trail to prove what was said or agreed. Carry on paying your agreed amount. If and when you are taken to court, you will probably receive the paperwork with a date and time etc. I assume that you will won't be defending the action. When you arrive at court, I believe that you will be asked to fill in an income and expenditure report. You will see the judge. I wouldn't expect anyone from the loan company to turn up. Make your offer of payment that you can afford each month. Job done.

I'm not an expert, but this is what happened to a colleague. HTH.

RandomMess · 16/10/2018 21:51

If you are trying to take on a mortgage then you can't go onto the sort of debt repayment plan they offer.

Hmmm interest free credit card?

I think CAB urgently as I suspect they are being underhand Thanks

irrate · 16/10/2018 21:53

Op they have to give you a reason for cancelling the contract. Have you had any paperwork from them? I would go to citizens advice first thing tomorrow. Erudio sound like a one of those companies that buys the debt at a reduced rate and because they aren't getting it paid off quickly enough for them they have decided to go back on the contract. You are in good standing as you are making regular payments. Have you had any recent statements showing the balance reducing at all. No judge is going to make you pay a lump sum you haven't got, they will take into account your circumstances and the fact you are paying this debt off. The company is trying thier luck and trying to scare you into paying the debt off quickly. Wouldn't surprise me if they have done this to others too. Having been in the same position as you I know it's scary but stand your ground. Keep making your payments they won't waste their money or time taking you to court if they know you haven't the lump sum to give them. Best of luck.

PanamaPattie · 16/10/2018 21:54

I hope you get your mortgage before any CCJ. Shock

meddie · 16/10/2018 21:55

Go to step change. They will take into account all your outgoings and propose a realistic repayment plan to the company and any other debtors. Sometimes you can even get interest frozen so payments are coming off the debt rather than covering interest.
I did a debt management for myself years ago following my divorce and using standard templates online. Worked out what I had as disposable income and offered the companies a pro rata amount and all accepted. It was a hassle so if step change will do it for you then do that. You might find you arent struggling as much. If the payments are less then you currently offer then thats their problem to deal with. If it went to court they know they would be unlikely to get any higher than what a debt management plan had offered.

irrate · 16/10/2018 21:55

Apologies for no paragraphs. Typing on my phone.

Justanothernameonthepage · 16/10/2018 21:56

Are you part of a union at work? Or is there one you can join? They normally have access to legal advice. I'd also write to your mp and include details about the dv.

AlphaBravo · 16/10/2018 21:57

How do you default on a student loan? Isn't it paid by PAYE monthly and the payment reflects your p/A wage?

Or have I missed something. Can someone explain this to me as I'm taking out student finance next year and now terrified about repayments.


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meddie · 16/10/2018 21:58

Sorry just saw the mortgage. That needs to be sorted before a debt management plan is registered on your credit file. Or you would be unlikely to get an offer.

Lifeisabeach09 · 16/10/2018 22:00

Assholes, how can they terminate a legally binding agreement like that?!
Fucking government for selling off student loads to private companies!!!
Try Stepchange or the Money Advice Service.
I don't see how they can force you to pay. I agree with PP that it's highly unlikely a court will force you to pay in full either. Keep paying your monthly amount and any liaising with them be done via email or letter.

categed · 16/10/2018 22:01

Erudio loans are a pain. They sent me a letter saying i was in arrears and that i had to make a final payment. I phoned and went a little bit ott at them.
It turned out i hadn't done anything wrong but that they hadn't collected the dd payments for 4 months because they had messed up. However i was still liable for the overdue payments but they made me an offer if i paid it all off there and then i got 1/3 taken off so i did that.

2 months later another letter to say you have 1/3 debt and need to repay immediately. Another phone call another admitance of their mess and account closed.

They need to let you know what the arrears are and give you a chance to pay them off, they obviously haven't done this. (And don't be sure they were sending letters to you ex they hadn't bothered to semd mine anywhere and kept making up random computer generated addressess for me).
They need to give you an option and not just termination without nitice. Phone tomorrow and demand to speak to a manager ask for confirmation of everything they say to be emailed to you as you speak to them.

Good luck. Once i got the right people it was easy to sort.

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