erudio student loans

[mrsbug]

Hi, I have an old student loan from 1998 which I have been deferring since then as I have never earned enough to pay it back (there are some advantages to being poor )

I recently had a letter from a company called erudio student loans saying they have bought my student loan from the government. All very reassuring about how the t and cs of my loan won't change, etc.

Now I've had the regular deferral letter from them and it's much more detailed than before. They want my bank details which I'm not really happy to give, and they say my details will be checked with a credit reference agency, which I don't think they used to do - my loan has never shown on my credit file.

Has anyone else had this? Do I have to give them this info?

Hard to read those?

Maybe these are easier?

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Argh. Image sharing sites are a pain. Sorry.

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Thanks for sharing those, mandaki. I hope mine is the same as if it will be cancelled after 25 years then I only have nine years to go!

Has anyone else noticed one of the statements on the back where you sign says 'there are no mis-statements or omissions, whether intentional or otherwise'? Surely it's impossible to sign to say you haven't made any unintentional errors?

There isn't actually any obligation to use Erudio's forms.

All the legislation says is that you need to prove that your gross income now and for the next 3 months is likely to be below the deferment threshold.

It doesn't say you must use this form or another.

You could write you own letter setting out how you comply with that, referring to and supplying just the evidence you need to support that fact.

In legal terms Erudio would not have any basis for objecting to that.

My deferment is at an odd time of year due to some previous delays years ago, so won't come up yet.

When it does I will be applying using something like the following.

*

Erudio Student Loans Ltd
PO Box 580
Rotherham
S63 3FR

Formal request for deferment under the Education (Student Loans) Act and Education (Student Loans) Regulations.

I formally request that my student loan accounts listed on the following page are deferred for a further 12 months pursuant to the Education (Student Loans) Act and Education (Student Loans) Regulations.

In accordance with the regulations I provide evidence that:

- my gross income for the relevant month is not more than the deferment level.
- my gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level.

where “relevant month” means the month before the month in which the borrower asks for deferment.

I shall not be completing the form provided by yourselves as it requests private personal or other data that is not relevant to the above deferment conditions.

I note that there is no requirement in the legislation or agreement to apply for deferment in a given format or on a specified form.

I look forward to confirmation of deferment.

Yours faithfully,

mandakl - thanks for all of that. Seeing the original agreements is enlightening - especially the note that "we may disclose your information to credit reference agencies IF you have broken the agreement".

Not the same as the conditions Erudio imply on their forms.

Could the completion or use of the Erudio deferment forms imply any acceptance of a change in terms or conditions?

Although, Erudio do also state on the Fair Processing Notice: we will undertake checks "in accordance with the terms set out in your original agreement"

Possible I suppose depending on the wording. One reason why I don't intend to use them.

As said, going to have to wait for my forms until later in the year.

If anyone can scan and post copies up of what they are sending out that might be useful?

I'm completing my forms today and my inclination is to supply no information beyond what SLC used to ask for every year or what I know they already hold.

If it helps anyone, this will mean I will not give the following information:

Page 1: I will give DoB, confirm current address and supply email address.

I will not give NI number, homeowner status, previous address in last 3 years, or any telephone numbers.

Page 2: I will confirm I hold a current account. The form says please provide DD details if your current details are no longer valid. Mine haven't changed so I don't need to complete this section.

Page 3: Nil throughout

Page 4: Nil except relevant part of section 7

Page 5: Total income, sign and date.

I'll include supporting letter and copy of most recent bank statement with names on debits obscured as only credits are relevant.

I think I'll also include a cover letter like mandakl's for completeness.

Am I missing anything obvious?

cross-posted with mandakl. Unfortunately, I haven't got a scanner. There are 3 double side forms to complete - only some of which will be relevant to each individual and one side is given over to the Fair Processing Notice,

The bottom of page 5 says (underneath Certificate and Warranty signature box):

WARNING:

In accordance with the terms of your original agreement We have the right to undertake checks to confirm you are eligible for deferment.
Accordingly therefore, by submitting this application you confirm that you consent for Erudio to perform relevant checks at CRAs and Fraud prevention agencies.
If your application for deferral is accepted, information that you have a deferred loan will be registered with CRAs.

I think the bold section is additional to the original terms in the SLC agreements.

There's no suggestion that you have the option not to consent.

The forms actually resemble a standardised application for credit with all the details requested being what a credit card or loan compnay would ask for to confirm identity and run credit checks.
Given that they will have a 15 year history of most people via SLC - I can't see the need for this extra information - never mind that it's not needed for deferment.

Perhaps SLC are not migrating this data as part of the sell-off.

There is also a 15 page accompanying 'instruction' booklet called "Getting your deferment application form right"

A debt collector trying to fool you over what they can do and trying to get information they are not entitled to then.

par for the course with these people.

Love the bit about the 15 page booklet. The law is very clear on what you have to prove. They are doing their best to confuse people and make their extra demands seem official.

Exactly. The key problem for them is that once they realise that borrowers are genuinely entitled to defer, (it's not all some big con) there are no options left for Erudion.
They can try sharp practice or being underhand but if a case goes to court or the financial ombudsman and it's found that the borrower fulfils the conditions for deferral - then no matter what Erudio do - they will eventually be forced to allow deferral.
They've bought a pup but I'm sure they will knock themselves out trying to make it pay.

If you fulfil these conditions you MUST be allowed to defer - all the rest is bluster:

The Education (Student Loans) Regulations 1998
1998 No. 211
SCHEDULE 2
PART I
Regulation 9

*9. Each year the lender will tell the borrower the new deferment level for the period between 1st September and the following 31st August. The borrower can defer making repayments of the loan if—

(a)the lender has not already asked him to repay the loan in full, and

(b)he can show—

(i)that his gross income for the relevant month is not more than the deferment level, and

(ii)if the lender asks, that his gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level.*

Yes, that is why I plan to sidestep the forms altogether, supply the information the law says I have to be entitled to defer, and Erudio then refuse they are going to wish they hadn't. ;)

I've just twigged as well - there's no need for me to give them my date of birth "for verification purposes" as the form as an account id number printed top right of page one.

They ask for DoB, NI number, address status, previous address and tick box if the cover letter (separate page) has the correct address on it!

They don't print or ask for your name anywhere on the form! (unless they've got it wrong on the cover letter)

Because obviously, if I was the wrong recipient, I'd still complete the form and send it back - that's why they need this extra information - to be sure it's really me asking to defer and not because it's nice to have lots of extra juicy data to sell on and use for whatever other purposes they have in mind.

edit ... the form has an account ID number printed on page 1...

mandakl - all your help is really top - thanks

So they ask your date of birth for ID verification, but print it on the forms? And the address?

They must think we are idiots.

They obviously didn't think this through in their keenness to get info they are not entitled to.

mandaki thanks for posting the letter, I think I will do the same and plagiarise your letter, if you don't mind?

Would it be worth specifying in the letter that I do not give my consent for details of my deferred loan to be passed onto any credit reference agencies?

Sorry mandakl - I've not explained that very well.

They send you a covering letter which includes your full name and address, your individual loan account numbers PLUS a new unique Erudio Customer Reference number.
The form is three loose, A4, double-sided pages (1-2, 3-4, 5-6) not bound or folded or connected.
Only Page 1-2 has the identifying number pre-printed on front, top-right.

This Cust Ref No. is printed (very wee) in top right of page 1 of deferral forms (3 x double sided pages) - ONLY on front of Page 1-2

There are no other identity or pre-printed details printed on page 1 or page 2 (DD mandate) - no other pre-printed details on the forms that I can see.

On Page 1, Box 1: for verification purposes please provide DoB, NI number and tick box Tenant/Homeowner/Other

Page 1, Box 2: Are the name and address details in the accompanying letter correct? Yes/No tick box

If No - provide correct details.

Page 1 Box 3: If you have been at your current address less than 3 years provide details of previous address and how long lived there.

Page 1, Box 4: Provide Day, evening and mobile phone numbers and email address.

Each page has one of those small, black, scanning symbols in top right too.
It may be that when they receive the forms, they use page 1-2 (all the extra ID info) separately - hence that's the only page with the Customer Reference Number pre-printed.

legislation seems clear on the benefits issue.

www.legislation.gov.uk/uksi/1998/211/made

"gross income" means 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;

So do you think that 'gross income' means before or after my salary sacrifice for childcare vouchers, mandaki

my childcare vouchers provider states on their website that one of the benefits of using them is reducing student loan payments, but I'm not sure whether to just take their word for it.

Unless the salary sacrifice makes the difference between repayment or deferral...could you not just include them?

The key issue for a borrower is being either under or over the threshold over the 4 months that count - your income can vary up or down throughout the year - but on an average of those months it should be less than the threshold evidenced by payslips, bank statements etc

but hey, I'm glad I don't have those added complications

Neither do I.

I can only do what you can and see what Google throws up. Most results seem to suggest that the reduced income would be the one that counts for student loan assessment.

Or get some advice, but honestly not sure where from that would be impartial but expert enough?

If me I think I would just put the actual cash income you receive. If they baulk, then you can look into it in more detail. If they don't, then all good.

I have a couple more queries I'd value input on before returning the forms.

Two interesting points first - In the 15 page guide to completing the form - quote: " the requirements to successfully apply for deferment remain the same as last year"

In the Certificate/Warrant section where you sign the form - there is no reference to relevant month or next 3 months - quote: "To the best of my knowledge and belief, my average gross monthly income for this month and the next two months will not, or is unlikely to, exceed the current Deferment Threshold" -

They're probably not huge points but worth noting.

My main bugbear is the disclosure of information to CRAs. I'm sure, looking at the original agreements posted by mandakl, that there is no scope for them to share information on your record about loans successfully in deferral - yet:

In the Fair Processing Notice, Erudio quote: “If your application for deferral is accepted, information that you have a deferred loan will be shared with credit reference agencies".

Is it worth putting something in a covering letter NOT consenting to this information sharing, because I'm fairly sure the original agreement doesn't cover this.... or is that a distraction? Will it even achieve anything?

Perhaps something along these lines:

Unless you can show otherwise, this constitutes a change to the terms and conditions of the original agreement and I do not consent to such a change or to such information being shared.

What do you think?

Or is it better to deal with deferral first and fight this later? Although by signing the application I may be giving consent for the change - is it better to write an objection on the form itself - or will this just have no effect?

I think as you say the point about the number of months is minor. It could just be a different interpretation of what the wording of the law means, although not sure it's one I would agree with.

Regards to consent to share data, if it was me, and I was going to return that form, I think I might include what you say.

Put it this way, if the original agreement allowed them to share deferment status on your credit reports in the first place, they wouldn't need to put that in would they.

There is nothing in law that says you have to agree to that, so if they did it anyway, or tried to deny you deferment because you didn't agree, then I think you might have good grounds for taking a complaint to the authorities.