Graduates offered the option of paying off pre-1998 student loans by paying only 20% – but should you agree?
Martin: “The question to ask yourself is: how much time will I save beyond the threshold before my loan clears? “
MoneySavingExpert.com founder and president Martin Lewis says while most shouldn’t take the offer, it may work for some.
“It is likely that the majority of people who receive one of these letters should treat it as if it were dirty, hold it by the edge and immediately throw it in the trash,” he said.
“If you still have one of these loans, it means you haven’t paid it back for at least 20 years. So in most cases you are unlikely to ever pay it back. you are unlikely to pay it back.If it may seem tempting to pay less than the outstanding balance, the loan will eventually wipe out.
“Yet, as Erudio has dramatically increased the percentage it offers to wipe, from 50% to around 80% for some, there are now probably quite a few people, who are temporarily postponing and have a reasonable chance of making more. Threshold of £ 30,737, for whom Erudio’s offer is attractive and will save them money.
“The question to ask yourself is, how much time will I save above the threshold before my loan is canceled? Then calculate how much you would pay over that period and do the math. If you were to probably pay more than the figure – settle.
“I’m happy to see that Erudio took into account one of my criticisms from the last time, that he didn’t give any information on when the loan would be canceled, and it’s now in the process. letters. “