Monday 29th of June 2009
Student debt is increasing as more undergraduates take out government loans to help pay their tuition fees.
The recession has seen applications for some universities soar as people look to escape the job market and further their education, which could result in such individuals seeking individual voluntary arrangement (IVA) advice to reduce other financial commitments, such as credit card repayments.
According to the Press Association, the Student Loans Company lent £4.2 billion in 2008-09.
Liberal Democrat universities spokesperson Stephen Williams said that this debt problem could get worse as many universities plan to increase their fees.
Graduates may be feeling the effects of juggling financial commitments that could have been racked up during their degree, such as spending on different credit cards, although an IVA could help university leavers with plastic debt.
"This government has saddled graduates with billions of pounds of debt. As a result, students leaving university this year will have built up mountains of debt just as they enter an extremely tough job market," Mr Williams said.
Britons who can not afford to see the majority of their wage go on paying off debt could find an IVA to be a support in getting their finances back on track.
With the potential for credit card balances to be reduced by up to 70 per cent, graduates may find it easier to keep on top of their monetary commitments.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs could provide stability for the self-employed
