Summary

When you make an application for credit, the lender will obtain your credit record from one of the major credit reference agencies. However, they will not ( remortgages ) be able to see your student loan debt, because credit reference agencies are not allowed access to this information. This article examines the situation.

Personal Finance. Student loans debts do not go on your credit record. Page 2

Author: Anna Richardson

In September 1998, the student loan system changed, and the system

remains the same to this day. Now, repayments are taken directly at source, straight from the salary in the same way as national insurance and income tax. This method has been a lot more successful.

The lending industry is not happy about the student loan situation, their main argument being that they need to know, when considering an application for credit, if ( car insurance quotes ) the applicant has extra financial responsibilities. The introduction of top-up fees resulted in increasingly large student debts, and as the post-1998 loans have to be paid off at a rate of 9% of the graduate's income once it has reached £15,000, it is a large portion of income to lose.

The Association Consumer Credit Counselling Service made the following statement: "Knowing whether a young person has a student loan and whether it is being paid back, is useful." So they are in agreement with the lenders.

The Citizens Advice Bureau is also keen to have the information made public, because they feel that graduates could be taking on too much debt, and if lenders could see their ( cheap secured loans ) student loans, they would ensure that graduates are not given the ability to borrow beyond their means.

However, the Department for Education and Skills is ( cheap mortgages ) showing no signs of wavering on its decision to keep individuals' debts to the Student Loan Company private.

For the foreseeable future - the situation will remain the same and student loans information will be inaccessible to the credit industry.