Erudio studnet loan settlement offer

[DarlingNikita]

Has anyone else had a letter from Erudio this week making a partial settlement offer?

They've offered to write off an amount that's just over my usual monthly repayment if I agree to pay the rest by the end of this week.

I'm tempted to do so and can afford to pay it off, but I'm a bit worried about how a 'partial' repayment might affect my credit score.

Not sure what my question is really but would be interested in hearing opinions/experiences from anyone in the same position.

With partial settlement of any debt, you need to know up front how they will record it on your credit file, and have the agreement in writing before you make the payment, as well as written confirmation that the settlement is full and final and they won’t chase you for the balance in the future. If they won’t provide these, don’t make the settlement. Is there any small print on the letter giving this information?

If you agree a partial settlement it is often recorded as partially settled on your credit file, which can have an impact on your credit score. If it turns out to be a problem, you would need the paperwork confirming the terms of the settlement to show a prospective lender.

Thanks Isleep. I've tried to upload the letter here but the site won't let me, for some reason. I can't see any small print, no. It says 'We will write off the remaining [figure] and any interest this month...loan will be closed and liability resolved.'

All it says about 'downsides' is I'll 'lose any rights you had under the loan terms and conditions, including the ability to defer or exercise age-related cancellation... it may impact upon your ability to get future funding from the Student Loans Company.'

You still need to clarify the point about your credit file with them. In writing. Have you done a credit search, does it show up? I used to do bankruptcy work and I don’t recall a student loan company loan coming up on a credit search, although it’s not really relevant to bankruptcy as they aren’t provable (can’t be written off by bankruptcy). Erudio is a private company though so it may be different.

Re losing any rights, I don’t think you need the rights as the loan would apparently be dealt with and resolved, as per their letter. Regarding future student finance, I guess it’s for you to decide if you’ll need it in future.

I'm pretty sure I won't need or want any future student finance, so I guess it's just the credit file thing I need to check. I haven't done a credit search, no. I used to work in that area but I can't remember how you do them

I think I'll just phone them up. They can't be THAT scary, can they?

I had a letter like this a couple of months ago.

I am currently deferred (pre 98 loan) and as I am unlikely to ever earn the threshold to pay it back I figured they were grasping trying to get some money back off me as in 2 years my first loan gets written off.

I'd be a fool to pay them anything.

Not sure if this is the same for you.

No, I've been paying it back and TBH quite like the idea of just paying it all off and it going away. I know I'm lucky to be in a position to do so.

I called them earlier and they said they will definitely not pursue me any further once I've paid, and it won't appear on credit searches as they are not reporting my loan and thus none of my student loan activity appears on credit searches. They're writing to me to confirm this and then I'll pay it off.