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did students used to be able to write their student debts off?

i remember hearing this somewhere and was wondering if its just poppycock, but yar i remember hearing that when tuition fees were first introduced the students upon graduating would simply declare themselves bank rupt to avoid having to repay the loans and have them written off, so is this true? seems a mighty fine idea if it was :biggrin:
Reply 1
Avatar for plimsolls
plimsolls
If you end up disabled and unable to work, you can apply to have it written off. I'm not sure about declaring bankruptcy.
Reply 2
Avatar for chiddy09
chiddy09
Original post by plimsolls
If you end up disabled and unable to work, you can apply to have it written off. I'm not sure about declaring bankruptcy.


If you declare yourself bankrupt then say bye bye to your credit rating, specially if you want to buy a new house in years to come.
Reply 3
Avatar for blu tack
blu tack
9
I don't know about previously but nowadays declaring yourself bankrupt doesn't get rid of student loan debt, I think there's one other exception too but I can't just think of it.
Reply 4
Avatar for Juno
Juno
20
Yes, you used to be able to go bankrupt which would write off student loan debts (and all other debts) but there's a lot more to it which makes it not so much of a "mighty fine idea". You have no chance of getting other credit for at least 6 years, some professions are then made unavailable to you (eg you cannot be a financial advisor, and may not even be able to get call centre jobs) and you may have to pay back a percentage of future earnings. And you actually have to prove you're having difficulty paying your debts as it's up to a judge to decide whether to let you become a bankrupt - you can't just decide one day to do it for no reason other than to avoid paying back.

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