In November 2013 Government completed the sale of the outstanding student loans owned by around a quarter of a million borrowers. The sale related to the remaining loans taken out by students who began courses between 1990 and 1998. These loans were sold to Erudio Student Loans Ltd and management of these loans will be transferred to them on the 1 March 2014.
From Monday 17 February onwards, letters will be issued to inform customers that their Mortgage Style Loans have been sold to Erudio Student Loans Ltd.
Here are some Frequently asked questions to help answer any queries you may have:
What is a Mortgage Style Loan?
Mortgage Style Loans were available to higher education (HE) students who started course between August 1990 and August 1998. Repayments of these loans were collected directly by Student Loans Company (SLC). The loans are repayable over a fixed number of instalments, irrespective of the amount outstanding.
Why has SLC transferred ownership of my loan account(s)?
The UK Government decided to sell these loans to help reduce the current Public Sector Net Debt (PSND). This is part of a wider UK Government programme and is done in the best interest of taxpayers.
For further information about this go to www.bis.gov.uk
Who are Erudio Student Loans Ltd?
Erudio Student Loans Ltd was established in 2013 to purchase a portfolio of student loans from the UK Government.
Erudio Student Loans Ltd is regulated by the same governing bodies as SLC.
For queries on any of your loans that have been transferred, contact Erudio Student Loans Ltd directly or visit their website at www.erudiostudentloans.co.uk
Are any of the Terms and Conditions of my loan(s) affected by this transfer?
No, the same Terms and Conditions will continue to be applied.
Will there be any change to how the interest rate is calculated?
No, there will be no change to how the interest rate is calculated annually or how it is applied to your loan(s). This will continue to be set each year by the UK Government. The current interest rate, from 1 September 2013 to 31 August 2014, is 3.3%.
What do I do if I want to repay my loan account(s) in full?
You can repay your transferred loan account(s) in full at any time. There will be no changes to repayment terms you agreed when you took out the loan(s). For information about a settlement figure contact Erudio Student Loans Ltd directly.
What if I currently defer my loan? Will that continue?
Yes, your existing deferment will remain in place until the end of the deferment period. Erudio Student Loans Ltd will then contact you regarding reapplying for deferment.
What do I do if I want to defer any of the loans that have been sold?
You can still apply to defer your Mortgage Style Loan(s) that have been sold. For information on deferment and how to apply you should contact Erudio Student Loans Ltd directly.
I have other loan(s) administered by Honours Student Loans/Thesis Servicing - are they affected?
No. Any existing loan arrangements you have with Honours Student Loans/Thesis Servicing are not affected. You should contact them directly for any information about your loan accounts.
Can I still access my loan account(s) information through my online account at www.studentloanrepayment.co.uk?
After the transfer date you'll only be able to view your Income Contingent Repayment (ICR) Loans from the online account you have with us.
What if I currently make repayments by Direct Debit, do I need to do anything?
No, you don't need to do anything - your loan account(s), Direct Debit instruction and monthly repayment amount(s) will transfer over automatically.
What if I currently make repayments by Standing Order, cheque, Postal Order or continuous card repayment do I need to do anything?
Yes, you will have to contact Erudio Student Loans Ltd to set up new arrangements with them.
I currently have other loans that I repay through my salary/wages - will this change?
No, any loan(s) you repay through your employer/HM Revenue & Customs (HMRC) are called Income Contingent Repayment (ICR) Loans – you'll continue to repay them in this way.
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