question category: Debt Relief Order

If I get a DRO will it stop me from getting a Student Loan?
Submitted on: 23rd Apr 2010 by Non-Member | Total Answers: 1

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Re: If I get a DRO will it stop me from getting a Student Loan?

Restrictions are placed on someone who has entered into a Debt Relief Order, similar to those you would face if you were declared bankrupt. For example, Whilst a bankrupt the debtor must not obtain credit of £500 or more, either alone or jointly with another person, without disclosing that they are subject to a DRO to the lender.

However student loans do receive different treatment to standard unsecured lending. The repayment of student loans is through the tax system. It is deducted at source along with tax and National Insurance and repayment only begins after the student has left higher education and is earning over £15,000.

A new student loan during the term of the Debt Relief Order would not necessarily affect the debtors entitlement to remain within the Debt Relief Order.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. Debt Advice Foundation provides a free, confidential helpline and can advise you of all your options. Click here to find out more.

Submitted on: 27th Apr 2010 by Mark Expert

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