DRO and Student Finance

Molly41

Hi,
My eldest son is 23 and got into a right pickle with money.
We were at CAB yesterday discussing bankruptcy but it looks like he will go through a DRO with them acting as an intermediary.

However one question they could not answer !

He would like to go to UNI - he lives independently currently but we think he will come home as he is on minimum wage and cannot make ends meet.

He is a bright young man and has realised that he wants to go in another direction

Would having a DRO impact on his ability to apply for and receive student finance ?

wba31

It shouldnt affect any application for student loans as they are excluded debts in DRO and paid from salary so are different to standard loans

Bex1111

Hello,

I am subject to a DRO as from last November (2012) and am currently in the moratorium period, which lasts for a year. In this period I am not allowed to sought any loans over £500, without first informing the lender.

I was fearful that my DRO status would ruin my chances of studying to better myself and being eligible for student finance this year, however, I am just in the final stages of sorting SF to begin university this Sept 13.

The advice I was given from both the DRO people and SFE was that as long as I informed SFE that I was subject to a DRO in writing...before accepting/signing for the final invoice for SF, it would not be a problem.

The other thing I must do is once my SF invoice is finalised, I must then send all details of finance and future payments of SF to the DRO and also explain/account where every penny will be spent i.e rent/utilities/books/travel/food. To my knowledge you cannot have disposable income of more than £50 per month under the DRO scheme although I think this alters after the first year.

It does not make it impossible, just a lot of extra paperwork and phone-calls.

Best regards.

debt_doctor

Molly41 wrote: »

Hi,
My eldest son is 23 and got into a right pickle with money.
We were at CAB yesterday discussing bankruptcy but it looks like he will go through a DRO with them acting as an intermediary.

However one question they could not answer !

He would like to go to UNI - he lives independently currently but we think he will come home as he is on minimum wage and cannot make ends meet.

He is a bright young man and has realised that he wants to go in another direction

Would having a DRO impact on his ability to apply for and receive student finance ?

Hi
No, having a DRO will not effect his ability to obtain student finance - but something that would definitely affect his DRO is coming to live with you and presumably therefore reducing significantly his outgoing costs of rent, c/tax, gas, elec, water etc.
He may well then fall foul of the disposable income test.

DD