Recovering from student debt

Article Written By: BrookeWebb

The most recent figures published by the SLC state that nearly 26 billion of national debt comes from the student sector, displaying a staggering 100% increase since 2005. Despite already writing off 29 million of unpaid tuition and maintenance loans, however, the SLC are not letting their customers off easily.

One of the more worrying impacts of the current recession is the sudden increase on debtors collecting outstanding sums, especially concerning the Student Loan Company (SLC), known by anyone who has attended further education as the channel by which you will have received your tuition and maintenance loans.

Several new measures are being implemented as part of a scheme to track down the estimated 227,000 graduates who are not paying their loans (although a fair amount of these are involved with further education), such as people who are unemployed but not on benefits, or some who have changed jobs and whose tax records have not yet been updated.

A spokesperson for the company stated that students from abroad who have since returned home are a major source of the issue, chiefly due to their separation from the British tax system by which most ex-students will repay their loans. The SLC demands those who no longer live in the UK to subscribe to their repayment system immediately, and non-nationals who have remained in this country will need to obtain a National Insurance Number in order to repay theirs over the same period of time as British ex-students.

It's important not to get unduly worried about not paid back your loan, however, as it is unlikely that you will be immediately pursued with legal action if your debts have not been completely repaid within just a few years of graduation.

The method by which the SCL retrieve your debt is, on the whole, carefully considered and far from unreasonable. If you are unfortunate enough to find yourself backed into a corner about your loan repayment, there is a string of efficient and affordable debt consultancy firms who will guide you expertly through the process of repayment, and not contribute too much to your financial problems in the process.

If you are fortunate enough to have stable employment, and youve already started saving, you could always try putting aside a bit of those savings per month towards paying back your loan. The really crippling factor can be inflation and interest, all of which is taken into account by the SLC, so the sooner your loans are paid back, the less of a headache they will be in ten or twenty years time.

About the Author

Kristan Brangers has recently been looking into debt help offered by Baines and Ernst and is now creating a debt management plan.

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Recovering from student debt