You are here: Home - Uncategorized -

Student loans allow graduates to overstretch

Written by:

Graduates and students could be granted too much credit because the government will not share details about student loans, credit experts claim.

The credit reference agency Callcredit claimed that as information on student loans is not available to commercial lenders, both graduates and existing students could be given more credit than they would be allowed if their student loans were accounted for in lending calculations.

Additionally, a graduate that has an excellent record of repaying their student debt could be turned down for credit because they could have no credit history – as the student loan will not appear on their credit record.

Callcredit industry affairs director Mel Mitchley says: “There are 2.8m people in the UK who are currently under the credit radar because of its [the government’s] decision not to share student loan information.

“To many people it’s a no-brainer, the information should be shared as it would help people who have a responsible attitude to their student debt and prevent those who are already in difficulty being granted further credit. We need to have further debate on the matter.”

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Car shopping online can save you thousands

Choosing your new car over the Internet could save you as much as £5,925 off the list price, research from...