Student debts ‘set to impact on credit reports’

Those looking to become debt free could be affected by student loan debt, according to mform.co.uk.

The online mortgage company warns that plans to include student loan repayments in credit files will only include missed payments, as prompt payments will not have a positive impact.

“The average student can face debts of over £20,000 by the time they graduate and their average starting salary is around £16,000. Given statistics like this, many students miss one or more of their student loan repayments,” explains Francis Ghiloni, director of marketing and business development at mform.co.uk.

This news could result in black marks on credit records, highlighting the need to get debt free as soon as possible, as consumers could use money released from debt consolidation
to pay back student loans promptly.

Firstrung has countered the report, saying that it should not affect the ability of ex-students to get on the property ladder.

However, chief executive of Firstrung Paul Holmes pointed out that missed payments are “raked over a lot more intensely,” in the current financial climate, meaning those in doubt should seek debt advice.