Student Loans Giving False Debt Message

Fri, 21 Aug 2009

An industry expert has claimed that students in the UK are not being given a proper explanation of how student loans work.

Chris Tapp, director of financial education charity Credit Action, said that it is not properly clarified how student debt differs from debt incurred through the use of credit cards and overdrafts .

He claimed that it is "impossible" to get into difficulties with student loans because of the way they are repaid, meaning that the message being put across is that it is fine to be in debt .

Mr Tapp feels that such a message is causing students to apply for credit products, which could lead to more serious debt problems .

Describing the level of explanation students are currently given of how the student loan system works, he said: "I don't think that's been done as effectively as it could have been by the government and others."

Recent research from Push.co.uk revealed that students who started their university course last autumn will owe nearly £21,200 by the time they graduate .
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.