Took out Barclays Career Development Loan, now unemployed

happiness84

I sympathise with your situation. Unfortunately, I don't believe you have grounds to accuse the bank of bd practice in this instance since Career Development Loans are specifically tailored for those intending to study, with terms and conditions to repay once study has finished. This is usually on the assumption that higher education will lead to some sort of employment (unfortunately, the economic climate doesn't always agree!) and they are a risk, to lenders nd lendees (I guess hence the higher interest rate).

Unfortunately within these terms, you have a responsibility to try to repay the credit. However, there are a few options I can see. If you wish to fulfill your obligation and protect your credit file you can maintain the payments in full somehow. If this genuinely is not a possibility, you need to take independent debt advice (from a free organisation such as CCCS - 08001381111). You will complete an income and expenditure budget which could give you a basis to make reduced payments, as little as £1 per month depending on your circumstances. This with certainly affect your credit rating and the bank may try to pursue you for more money, but ultimately if you are paying the most you can afford (even if it is only £1), even a court wouldn't expect more. Thi, ideally, would be a temporary option until you get back on your feet.
Alternatively, if you feel your situation is long-term and there is no realistic way that you can repay your loan within a realistic time frame, even at a reduced rate, you could consider applying for bankruptcy. This, again, will have serious implications on your credit file and must be supported by your budget as there are other considerations to take with bakruptcy and you must be proven insolvent.
I know thi may not be what you wanted to hear but I hope it helps clarify things. I really would recommend speaking with someone like CCCS/CAB to get the ball rolling and good luck finding work!

kuohu

Just how do newbies manage to drag up ancient threads?

MrChandlerBing

I'm not sure who in their right mind would take a loan out to do a psychology masters. Did you research jobs at all before making this decision?

Anyway I'm not here to judge, I'll just echo what everyone else has said, desperately try and find any work so you can keep up with the repayments

Dinah93

MrChandlerBing wrote: »

I'm not sure who in their right mind would take a loan out to do a psychology masters.

Ah, you see if you'd done the masters you'd be able to answer your own question.

iolanthe07

This thread is two years old !!!!!!! The OP will long ago have got himself sorted.

PhilJoMar

Wow...there's a lot of people with opinions on this topic but with no possession of the facts.
CDLs are not ordinary bank loans...the money comes from the govt. but is administered by the banks (for which no doubt they get some or all of the interest due), however the banks' attitude differs in no way from an ordinary loan once your repayment period is due. Yes there are loan extension periods but they ultimately want "their" money back.
Now as for you smart alecs who question whether anyone should take out a CDL for an academic qualification...do you know the academic jobs market? Do you know how tough it is to get funding for a PhD? Do you know the rules for funding PhDs have changed in the last few years that will have the effect of practically instiutionalising corruption? Do you know that all the top public schools are offering sometimes as much as £15,000 a year for their alumnae to gain access to postgraduate study? Lastly, did you know that the current govt. has stopped funding many areas of academic study which will inevitably lead to fewer academic jobs? Plus isn't it a bit strange for the banks involved in CDLs to be handing out huge sums of money in such a poor professional job market and bearing in mind that ALL of the banks (I have spoken to many, many bankers so I know this) knew a financial sh*tstorm was coming that they were still handing out money in view of the financial apocalypse to come?
Now to my case...I took out a CDL for the last two years of a PhD. I was told a year's extension was possible should I require it but it took two years later for them to inform me that the course needed to have a practical element for a year's extension to be justified. Most PhDs need writing-up years but this doesn't count as a practical element. I informed them of the need for a wrting-up year at the start of my initial application but now they are telling me that I was misinformed by an employee for which they are willing to take no blame. If I had been informed of the ACTUAL rules I would never have gone down the full-time route, I would have gone to my local uni and would have had a better chance of funding as it would have been an open competition for funding , not an institutionalised corrupt one.
Now, what if I get really, really ill? Perhaps become disabled or suffer a mental health lapse? What if I have to become my wife's full-time carer for whatever reason? Are these people going to knock down my door and take my furniture? Am I going to be chained to a Poundland shelf for the next twenty years?
Haven't any of you rather heartless, uninformed individuals who have commented so far given this any thought?
CDLs are govt. money not private bank money. They want people to get on and get a professional job. Most of the people I speak to when I phone my CDL team can't even explain back to me what a PhD is!!! I said most, I meant ALL!
Anyway that's enough ranting for one night. I'll leave the rest of this thread to Thatcher's children...

PhilJoMar

One more thing...isn't is a bit strange to suggest bankruptcy in view of the fact that this is ultimately govt. money? If a govt. can indirectly make you go bankrupt for trying to better yourself, whilst doing their best to trash the economy, then this is a much, much, stranger world than I could ever have imagined...

Loanranger

Why reply to a thread that's over TWO years old???

Apples2

Get a job Phil.

Two posts on an ancient thread and you've bored us all to tears already.

selfassuranced

Apples2 wrote: »

Get a job Phil.

Two posts on an ancient thread and you've bored us all to tears already.

It's not boring it's actually the truth what Phil's talking about here. I love the whole 'make your bed now lye in it' attitude. I'm with Phil on this one on - pretty much everything he's said here. So I'm a little bit disappointed that no -one offered any advice to that lad the first time.

It doesn't matter if it's 2 or 3 or 5 years old these concerns are important to 'a lot' of people right now whatever the state of the economy, so why is it such a surprise that some want answers?

Ok done.