Many students have already had problems with personal debt. We consider how this will affect their ability to get the student loans necessary to support them through university.

Student loans now play a major part in providing the finance that students require to maintain their living expenses while at university.

However, if you have had difficulties repaying debt in the past, you may be concerned about whether or not you will be granted a student loan.

There is in fact no need to worry. Loans provided through the Student Loans Company are not dependant on past credit history.

Student Loans Company loans are provided on a non commercial basis as part of the government’s strategy for funding higher education. As such, as long as the course you are studying meets the criteria for student loan availability, you will be eligible for a loan whether you already have a poor credit rating or not.

Other finances may be restricted

Of course, some of the other financial help and facilities which are available to students through commercial banks may not be available if you have a poor credit history.

The decision of high street banks about whether or not to offer you facilities such as a student overdraft and the option of a credit card will be influenced by the way you have repaid credit in the past.

If your past credit history is poor for whatever reason, you may well find that you are refused these facilities.

Repaying debt after graduation

Repaying debt after you graduate is more difficult than you might think.

The average debt which a graduate will build up over three years of university life is now c£23,000. This is a huge millstone to have saddled around your neck before you have even started working life.

If you are lucky enough to find the job you want after graduation, repaying your student debts will not be easy.

Working life has associated costs which are far greater than those that you experience at university. Accommodation, clothing and entertainment costs all generally increase. It is therefore very difficult to save money to repay debt.

It is also important to realise that if you do start to struggle financially as a graduate, you will be unable to tackle Student Loans Company debt in the same way as other commercial debts.

A student loan from the student loans company cannot be written off using debt management solutions such as an individual voluntary arrangement (IVA) or bankruptcy.
 
If you are planning to go to university but already have a poor credit rating because of debt problems incurred in the past, this will not affect your ability to get a student loan through the student loans company.

These loans are available for all students registered on a qualifying course.

However, the need for you to live to your budget will be all the more important as other forms of finance such as a student bank account overdraft facility will probably not be available.

Living within a sensible budget is a key message for all students. If you can graduate from university with debts which are manageable, this will pay huge dividends when starting out in the world of work.

If you are struggling with debt, visit www.beatmydebt.com

Our vibrant forum gives free access to industry experts and others who have suffered with debt problems.

Useful guides, calculators and information are also available designed to help you understand how to manage and resolve debt problems.