DRO and mature students

G8311374

Hi,

I have been offered a place to study at University full time starting in September, this is following a hard couple of years where I was medically discharged from the RAF and unable to get permanent work. I have debts to credit cards and banks totalling £9000 which I have been paying back through a DMP via Welcome Solutions. My income will obviously take a huge hit, would I be accepted for a DRO as a student where my income is going to be Student Loans and NHS bursary and to that end would these be classed as income? Any advice would be great.

foxwales

If you are subject to a DRO you are not permitted to take on further credit without notifying the lender that you are subject to a DRO, this is a legal requirement and could affect your ability to get student loans, but you need to check this with the SL provider.

Providing that your income does not give you a disposable income over £50 a month, then I see no reason for you not to be accepted for a DRO, however you should asses your income and expenditure to determine your disposable income and ensure you meet the rest of the criteria for a DRO.

G8311374

I don't think Student Loans are classed as real loans as they can't be cancelled out with bankruptcy and are not credit checked, repayment is made direct from your wages.

foxwales

It depends on the type of Student loan and it's purpose. Any form of Credit that you obtain when subject to BR or DRO you have to declare that you are indeed BR or subject to DRO.

The lender will advise you accordingly if this will affect your SL application.

Better to be safe than sorry :beer:

G8311374

looking at the student loan application on line with the student finance england there is no option to declare that you are BR or have a DRO?

GotToChange

Bankruptcy - and I presume Debt Relief Orders - DO NOT preclude you from being eligible for Student Loan. (Equally they cannot be included in BR.) That's shy there is no question.

x

G8311374

Do I wait to be skint before I apply for a DRO or can I apply now so that the paperwork is finalised before term starts at the end of September?