Student debt can be "career barrier"
A money education charity has warned that student debt could potentially act as a barrier in terms of a graduate's future career.
Credit Action has said that the debts incurred from taking out a student loan could result in an increase in the number of graduate insolvencies - which could see many struggle with mortgages and jobs.
Professions such as law or accountancy are particularly difficult for graduates who have become insolvent to get into, according to the organisation.
Spokesperson for Credit Action Chris Tapp said: "If somebody at quite a young age struggles with a debt problem and is forced to go into an IVA or bankruptcy or something like that, then that affects their credit rating over the next six years, their ability to get a mortgage, their ability to work in certain types of profession - if you want to go into the legal profession or accountancy for example and you've previously been declared insolvent then that can be a real barrier."
He added that student debt can have real, long-term consequences which can affect a person's life long after they have left university and that he would be "very surprised" if the number of graduate insolvencies wasn't a rising percentage.
Source: themoneypages.com
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