Repaying your Student Loan (courses starting before 1998)
Under the terms of your student loan credit agreement, you are expected either to make regular repayments, or to defer repayment if your income falls under a certain level.
This information only applies if you started your higher education course before 1998. If you began your studies in or after 1998, see repaying your Student Loan.
Maintaining your student loan account
All student loans taken out by students who began courses between 1990 and 1998 are now owned and managed by Erudio Student Loans Ltd.
To make sure your student loan account is kept up-to-date, under the terms of your student loan agreement you must let Erudio Student Loans know about:
- any changes to your address and banking details
- any changes in your financial status
- any plans to leave the UK
Changes to your address and bank details
If you change your address or banking details, let Erudio Student Loans know immediately. Failure to do so may result in important correspondence being delayed, or repayments being missed on your loan account.
If you wish to update your details contact Erudio Student Loans by telephone, email or letter to update your address or banking details.
Changes in your financial status
You are expected to make regular student loan repayments, as outlined in your student loan agreement. If your financial status changes and you can no longer afford to make repayments, you should contact Erudio Student Loans to discuss your options, which may include deferring repayment.
Managing your student loan account if you go abroad
If you plan to leave the UK after you graduate or stop attending your course, you should let Erudio Student Loans know in plenty of time. They will need to make arrangements for you to either start repaying your loan or to delay repayment.
For advice on authorising third party access you should contact Erudio Student Loans.
Deferring repayment of your student loan
You can apply to Erudio Student Loans to defer your student loan repayments if all these three conditions apply:
- you took out the loan for a course that started before September 1998
- your gross earnings are £2,227 or less a month which is the same as an annual gross income of £26,727
- you have documentary evidence to show that your income is below this amount
If you are planning to go abroad for an extended period of time, you may also be able to postpone your repayments. But your income level in your new country must still be below the UK income threshold.
You will continue to be charged interest during any period of deferment.
How to defer
Read applying for deferment to find out how to apply. To assess your eligibility for deferment, Erudio Student Loans will only take your income into consideration. You don’t need to provide details about the income of any spouse, partner, parent or other relative.
Until you receive confirmation of deferment in writing, you must assume that repayments are due, regardless of whether your income falls below the deferment threshold.
If you're yet to make your first repayment
In the February after you complete your studies, Erudio Student Loans will send you a letter advising you that you will be due to start repaying your loan.
A deferment application form will be enclosed with this letter and you will be given the opportunity to apply for deferment. If you do not do this, repayment will automatically start in April.
If you are eligible to defer, you must complete and return the deferment application form to Erudio Student Loans with evidence of your income or means of financial support.
If you're already making repayments
If you're already repaying your student loan, you can ask Erudio Student Loans for a deferment application form at any time.
The form gives details of the maximum gross income level you can earn if you want to delay paying back your student loan and simple instructions on how to complete it.
If deferment is accepted, your start and finish dates will be confirmed in writing.
Deferment lasts for 12 months. You must make a fresh application each year if you wish to continue deferring repayment.
Any remaining arrears (repayments which are due but have not been met) after deferment has been accepted, are due for repayment. This means that if you apply late, you may be liable for some repayments.
Documents to send
When you are submitting an application to defer, you will need to give evidence of how you're being financially supported. If you don't give this, your application may not be accepted and you may be liable for repayments. You'll need to send Erudio Student Loans Ltd:
- a deferment application form
- proof of your means of financial support
Further details of which documents you need to give can be found at:
Deferment and repayment arrangements if you've a disability
If you have a disability, there are specific repayment and deferment arrangements. You qualify for these arrangements if you receive disability benefits such as:
- Disability Living Allowance
- Disability Premium
- Disabled Person's Tax Credit
- Short-term Incapacity Benefit at the higher rate
- Long-term Incapacity Benefit
- Industrial Injuries Benefit
- Severe Disablement Allowance
- Severe Disability Premium
These benefits are not taken into account when your gross income is assessed to decide if you qualify for deferment.
You may be able to extend your repayments over 10 years, if you are unlikely to be fit for full-time work for the following three years. If your gross monthly income for the next 36 months is not likely to exceed the deferment level, the deferment period will be 36 months.
Managing your student loan account if you go abroad
If you started your higher education course before 1998 and you are overseas, you can make arrangements to continue or defer repayment of your student loan.
Before you leave the UK
If you plan to leave the UK after you graduate or stop attending your course, let Erudio Student Loans know in plenty of time. Erudio Student Loans can arrange for you to:
- start repaying your loan, or change your repayment details
- defer repayment
- approve third party access
Continuing repayment of your student loan
If you have an existing schedule of monthly loan repayments by direct debit, these payments will continue to be deducted from your bank account while you are overseas. If you want to change the repayment arrangements, you can make payments by contacting Erudio Student Loans to arrange this.
It's not possible to have direct debits or standing orders in place from foreign bank accounts to the Erudio bank account.
Customers who no longer have UK bank accounts should contact Erudio Student Loans Ltd.
Deferring repayment when you're overseas
If you are earning income overseas in another currency, Erudio Student Loans will use a currency converter to check if the amount comes under the threshold.