What to do if you are in student loan arrears
We understand that sometimes it can be difficult to make payments on outstanding loans and credit, especially alongside repaying student loans.
If you find yourself falling behind on your debt repayments it may be worth looking at how your money is currently being spent. Here at DFH, we have a team of highly trained financial assessors that can help you do this. Additionally, we may be able to reduce your monthly repayments into one that is affordable for your current situation.
Can student loans be included in a Debt Management Plan?
Debt Management Plans cover most types of unsecured debt. Debts that are priority debts and/or secured debts cannot be included within a Debt Management Plan, but these will always be taken into when the Debt Management Plan payments are being calculated.
Student Loans are a form of unsecured debt, but are taken directly from wages once you are earning above an agreed ‘threshold’. There are some older Student Loan debts that are not taken from wages directly. These loans are often sold to third parties for collection, and if this has happened they can be added to a Plan with DFH.
There’s a chance that we will not be able to negotiate reduced monthly payments regarding your student loan repayment. However, if this is the case we can include this into your budget if you need to make a direct payment to them.
