Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Hang on, wasn't there a scandal about this when the government sold off the loans to a debt collection company?
There were quite a lot of problems when Erudio – owned by debt collectors Arrow Global – began chasing former graduates for debt dating back to the late 1990s. The firm bought the debt from the government last autumn but began chasing former students this spring.
What happened?
There were some problems with data according to the firm, which means it was forced to apologise and hand back cash to 500 graduates that it had wrongly snatched money from their bank accounts.
Was that the end of it?
Hardly. Since then The Independent has been contacted by several folk who say they've had money taken unfairly from their accounts or who have been able to resolve problems with Erudio. To be fair to the firm it has dealt with problems we've sent them quickly. But a steady trickle are arriving, mainly from those worried or surprised to face cash demands because they earn less than the the annual £28,775 earnings threshold.
So what now?
This week the government announced it is lowering the earnings threshold from September, meaning fewer graduates will be able to defer repaying it.
So more former students should expect repayment demands?
Yes. from 1 September only those who earn £26,727 or less will be able to defer paying. The Department for Business, Innovation and Skills has denied that the move has anything to do with the loans being sold off to debt collectors but instead is a regular adjustment to the deferral threshold. However, if you're one of an estimated 300,000 former 1990s students with mortgage-style loans, expect fresh demands. If you're worried you can call Erudio on 0845 217 1134.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments