Financial news categories
Financial news archive
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Student loan credit rating 'not a bad thing'
14 March 2008
A proposal by the Student Loans Company to begin reporting bad debts to credit agencies might not be such a bad thing, according to a personal finance expert.
Graduate students who fail to make loan repayments will in future be subject to the same legal processes as commercial defaulters, in a bid to discourage former students from forgetting about their loans.
Samantha Owens, head of personal finance at Moneyfacts, said that people who refuse to repay money and get reported should not see the decision as unfair, but rather take it as a lesson.
"It's the same as any kind of finance - all borrowing is done on a trust basis. At the end of the day, they lend you money based on the fact that you are going to pay it back at some point. It is a lesson to be learned for the future – you take out a student loan and you don't pay it back - you wouldn't expect to take out a mortgage, not pay it back and get away with it," she said.
Student's loans are now a necessity with the average loan of the class of 2010 expected to top £20,000. 
