There’s no doubt that the rising cost of living and the present economic situation is a hot topics of discussion. You are possibly thinking about money or making concessions on how to meet your financial obligations. Talking about money can be unpleasant and daunting and you may be having trouble making your payments. If you don’t know who to talk to, or what repayment options are available to you, student loan Erudio is here to help.
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Student Loan Erudio
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Erudio Student Loans is a financial services firm that manages student debts taken out by students. They focus on students who started studies between 1990 and 1998 and whose loans were previously managed by the Student Loans Corporation. Erudio is in charge of handling the deferment process for student loan customers and organizing payments for customers who are not in deferment. They also assist customers who are facing financial issues in transitioning to reasonable and sustainable repayment plans.
Arrow Global, one of Europe’s major managers of consumer debts, and CarVal Investments, a leading worldwide alternative asset manager support Erudio. Erudio Student Loans is authorized by the Financial Conduct Authority and is dedicated to providing the best service possible. They are well known for helping students defer their payments. This brings us to the question:
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What is deferment?
Deferment is the process of postponing your loan repayments for 1 year (12 months). If you must have a gross monthly income of £2,924.33 or less (equivalent to £35,092 per year) to be eligible to apply for deferment. You might be wondering if Erudio offers good rates. Yes, they do! We will review Erudio’s rates in the next section. Read along!
Erudio deferment threshold and interest rate
The Department for Education (DfE) has confirmed to Student Loans Erudio the deferment threshold and interest rate. From September 1st, 2022 to August 31st, 2023 the new deferment threshold for mortgage-style student loans will be a gross annual income of £35,092 ( £2,924.33 per month). The new interest rate for the aforementioned period is 9%. The threshold is calculated annually by DfE, using the data published by the Office for National Statistics.
The interest rate charged always corresponds with the published Retail Price Index (RPI) from March 2022. RPI was 9% in March 2022 and this remains the interest charged on loans from 1 September 2022 to 31 August 2023. All deferments are reviewed by the Student Loans Company. Thus, deferment applications will be assessed on the threshold applicable on the date the Deferment Application Form (DAF) is received.
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How to apply for deferment
To apply for deferments, you must fill out an online at the official student loan Erudio’s page. You must also submit documentation of your gross income or financial support. Only your gross income is considered. You don’t need to supply income information for your spouse, partner, parents, or other relatives. Your gross income is the amount of money you earn before any deductions (income tax or national insurance) are deducted from it.
Critics of student loan Erudio
Since taking over the loans, Erudio has drawn criticism from current loan holders for not being able to handle the high volume of deferral requests. They were also accused of incorrectly withdrawing funds from loan holders’ accounts. Several Erudio clients have reported an attempt to modify loan terms, according to the Guardian. Since the SLC could only pass on information about delinquent payments, Erudio has written to these deferred loan holders, asking them to consent to let the company pass on information to credit bureaus. This may deter people from taking out loans in the future. In April 2016, the firm demanded repayments despite failing to send out 250,000 deferral paperwork. This resulted in some customers declaring being “bewildered by Erudio’s administrative problems”.
