Student loans pre-2000

[Alison1978]

I've deferred my payments for last 18 years but in the last 12 months gone back to work full time to my income is now above the threshold to defer again.

I was over the threshold by £77 and, as I have 4 loans I should be making re-payments of £195 a month. I've contacted both companies who bought the loans (Honours Student Loans & Erudio Student Loans) and asked them if they take into consideration my income and outgoings and can recalculate so I can make a more affordable payment. The answer was no and the only way this would be possible would be for me to take a smaller payment to make the account go in arrears and then in 16-24 months they'll contact me to discuss the payments I can afford. It's likely they'll report me to the credit agency and it'll appear on my credit record.

This seems really unfair. Not the fact I have to pay the loans back as I knew 20 years ago when i went to university I'd have to repayment at some point! More the fact they aren't willing to talk about what I can afford to pay. They have no idea how much I can realistic afford, noting about my circumstances and it seems unfair I need to go though a process that'll take over a year, making a debt to into arrears etc when I'm willing to discuss it with them now - and wouldn't have to worry about it and what it's doing to my credit record.

Just wondering if anyone else has had a similar experience with these companies, so anyone who went to university late 90's/early 2000 and if you did just make a smaller payment and let your account to into arrears and hat happened? Thanks!

That's how loans work though? I don't think anything else is possible.

The only thing you can do is reduce your income.

Did you include child benefit in your income calculation? Because you know that can be put into your husbands name

That’s what I had to do. I was over the threshold by £12 and repaying £170 a month was just not do-able. I also considered refusing the small pay rise which pushed me over the threshold and would have left me considerably worse off (yes I know it’s a loan and it needs repaying. I just can’t right now on this salary)

The mortgage style loans don't work like that. It's why they were changed. You must pay a set amount each month to pay off your loan in sixty payments (that's in my T&C anyway).

If your account ever goes into arrears for any reason they will not write it off as they're supposed to after 25 years or when you reach 50 as that's the get out clause. I know people who have loans which are at this age and they're refusing to write them off even though they aren't in arrears.

Im struggling to get mine deferred as they (erudio) won't send me a form to do it they're insisting I do it online and I can't as my equipment is too old to run the system their using and I just get errors all the time. I've no other way to do it online.

Unfortunately that is the way the old style loans work. I went to university in the 90's and had the same type loan - as soon I reached the threshold I started paying something like £138 pm until it was all gone. It's only the newer loans that are a percentage of income. Appreciate your frustration but I can only echo other posters that there's unlikely to be a way around it.

Its already on your credit record, the moment they were purchased they showed up. They show up as 'in payment holiday' when deferred and in theory shouldn't effect anything though I know mine showed up when I had a credit check done.

They say they might accept smaller payments in 18-24 months time if in arrears but that's because it will no longer be a student loan (so interest won't be as low as now, plus extra charges) and wholly owned by them (they're both part of a debt collecting group overall).

And you won't be able to defer payments.

Is there any way you can cut an hour a week off your hours and bring your salary down?

I have this title loan but am still in deferment as never earned enough.

Erudio are evil though so be careful.

Becca, I think you only los your rights to have the loan written off if you go into default. Which does happen if you're just a bit late making a payment.

You can email erudito and ask them to send you a form by email. Either complete on the pic or print and scan then email it back to them with your evidence.

Op, I would definitely see if you can slightly reduce your hours. You wouldn't even need to do it permanently - you just need three payslips showing you earn under the threshold.

Doesn't happen!

Just to say how crap, I’m in the new one thank goodness and about double the threshold - my payments are £87 per month. It seems really, really unfair.

glitter on a thread on moneysavingexpert about it being written off its been refused because of the account being in arrears. They're citing T&C saying if the account is ever in arrears then it won't be written off.

I can't scan or print anything on this device, it's too old (no apps work on it anymore because it can't be updated) email is literally text anything else like pics/attachments dont open, even if it did I can't secure my device enough to protect my identity which has already been stolen. I just need them to send me the form (like they're supposed to eight weeks before it ends) instead of being told I must do it online when I can't. I'm really panicking now as I'm now beyond the 28 days for it to be assessed limit. I've sent several letters and rung.

I'm guessing it's because they're part of arrow global who do debt collection so that's why they're so strict about including everything.

They're a nightmare.

I found out if I was to have direct payments then those would count as income because they aren't excluded as they're not a nationally managed benefit.

Well, erudito say differently on their own website.

Can you email? Send an email to [email protected] requesting a copy of the form be posted to you - chances are they're ignoring letters.

I wouldn't say it's unfair. You must've known that there were specific terms and conditions when you signed for it? I have a student loan and a career development loan, can barely afford to pay the both back monthly but I scrape by and manage, because I signed the dotted line!

Kirby, I was 17 when I got my loan as I imagine a lot of people were. My loan’s terms are pretty fair as I’m post 2005, but the old style ones are pretty rubbish, particularly when there wasn’t much other option between taking it or not going to uni. The selling to debt companies is not what most people thought they were signing up to.

Hi @helloflamingogo - I understand that however the terms of the loan appear to be the same, and banks are unlikely to let you renegotiate (mine certainly won't) so I don't see how it is any different to having any other loan. OP states that she thinks it is unfair that they won't renegotiate. I don't have the option to renegotiate and I got my loans in 2009 and a career development loan in 2013. It's frustrating but I think this is the norm for a lot of loans, even recent ones.

True Kirby, it just seems crazy to be 77 over the threshold and paying enough to take yourself back under.

glitter I'm sending another letter special delivery as a formal complaint as they told me last year they'd send me a form by the date as set out in the agreement and I don't need online access. At least then I'll have independent evidence I've contacted them before my deferment was up!

Email response was blank and couldn't be read so no idea what they said via email.

Apologies OP for the slight derail!!!

I don't know if you can use salary sacrifice to pay more into a pension to take yourself back under the threshold? It works for the newer loans (the ones where payments come out of PAYE) but not sure if it does for the pre-2000 ones.

It doesn't work for old ones. The income assessed is before any deductions are made.