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BankruptcyNews
Junior Member
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 Posted - 06 June 2007 : 10:38:34
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Concern over student loan debts
Concern has been voiced over the long-term problems that could arise from student loan debts, with fears that graduates could face substantial financial difficulty and insolvency, creating a barrier to future prospects.
Highlighting the negative effects of incurring heavy debt soon after university Credit Action spokesperson Chris Tapp warns that early insolvency can prevent graduates from entering various professions such as law or accountancy, for example.
He also asserts that debt problems can make it difficult to secure a mortgage, which is particularly important in light of reports that first-time buyers are finding it difficult to afford new homes.
"If somebody at quite a young age struggles with a debt problem and is forced to go into an IVA or bankruptcy or something like that, then that affects their credit rating over the next six years, their ability to get a mortgage, their ability to work in certain types of profession," explained Mr Tapp.
Credit Action states that student loans in themselves do not cause a significant debt problem for graduates, but contributes to a culture of debt.
Source: thelondonstockexchange.com
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Concern over student loan debts
