Credit history and Career Development loan default

ASantos

Hi,

I've taken on a professional career development loan with Co-op in 2015 for £8,500 to fund a MSc and can no longer afford the repayments of almost £300 per month as initially agreed and signed contract. Outstanding amount is just over £5,000. I've been explained by the bank that I cannot lower the monthly repayments and can only default on my payments and that eventually Co-op will pass on my debt to Wescot debt collectors. Despite of written warnings on every page of my loan agreement stating that should I default on payments at any point my credit history may be "seriously effected", I have been reassured by co-op on several occassions that although they cannot put this into writing to me they can guarantee that as it's a "government backed loan" as opposed to a normal loan and therefore my credit history will not be effected as I default on payments to Co-op Or when they pass on my debt to Wescot or even if I then miss any agreed payments with Wescot. Seems too good to be true?!? My question is, can anyone confirm that this is in fact true for career development loans not effecting credit histories negatively upon defaulted payments with the bank? Feeling pretty anxious about this as I currently have a very good credit score and history and never defaulted or missed payments with anything before and can't get co-op's reassurances in writing...Any advice would be much appreciated!

Many thanks in advance.

DCFC79

You do know credit scores aren't seen by lenders ?
Martin covred it in 1 of his shows on ITV.

How come you cant afford the payments ?

Whats changed a you were obviously ok with the payments at the start.

jonesMUFCforever

Any default will affect your credit files whether its a career development loan a mortgage credit card or personal loan.
At the end of the day it is a loan which you have or will default on.

Looking at this another way - are you in employment? What figure per month could you afford? Do you have any other debts?

If you have previously had a good credit rating have you thought of trying for a personal loan over a longer time-frame to repay this Co-op loan?