Students and ex-students across the United Kingdom are being encouraged to keep an eye on their debt levels before they spiral out of control. With cuts, recession and other doom gloom financial, especially for students under the elitist Cameron regime – now could be the best time for people to start taking their student debt more seriously. Young Academic profiles a case study to show you what can happen if you don’t take heed of this advice.
Mr X’s student loan currently stands at £5,700 and is in the hands of a debt collection agency. Some time ago the SLC asked for a payment of £250 a month. Mr X offered £130 but the Student Loan Company rejected this. He stupidly decided to forget the debt and vanish for a while. Now he has returned and the student loan has not disappeared. What should he do?
Young Academic’s advice to Mr X is to show positive intent and discuss how much you can genuinely afford to pay. Many ex-students find themselves in this situation and, unlike other debts, this will never disappear. No matter how much you earn, it is likely that the SLC will negotiate in order to get the student loan paid off. Of course, this does not apply for PAYE tax payers out there, who will already be making payments.
For those of you in serious debt trouble, you could always think about an IVA or a trust deed for those of you north of the boder. Keep an eye on the Young Academic lifestyle section for more updates.