University grant on credit file?

white123456

I have had poor credit in the past due to being young and irresponsible but I'm now trying really hard to get it on track.

All past debts will be wiped off by August next year (2016) as the 6 year mark will be reached. I've taken out 2 credit cards last year so I can start positive credit building. My limit is £200 on each and I never spend over £60 and always repay in full every month.

I went to uni 7 years ago but dropped out after I think about a month. I received a maintenance grant for £2,000 and I'm pretty sure they have never contacted me about this -I don't at all remember getting any letters about repaying this.

Now after 7 years they have written to me saying due to me failing to get back to them they have referred this to a debt collection agency. Now I'm thinking oh great why have they done this now after 7 years? Will this show on my credit file?

I know a maintenance grant is one you don't have to repay but obviously me dropping out means I do, but I am going to be gutted if this ruins my credit rating now after I've been trying to improve it.

Do I pay this back in installments? I don't mind if it's a bit a month. This debt agency has written me a letter too regarding payment.

Thanks to anyone who can help