Is it bad if your student loan gets written off?

I've been watching a lot of Dave Ramsey videos on youtube and the importance of paying off all your debt. I decided to log into my student finance to check how much my student loan is at...

I graduated 2 years ago and I haven't been earning enough to even start making payments on the debt. I'm starting to wonder, what happens once the debt is written off?

Is it as bad as declaring bankruptcy? Does it go on a record that can effect my credit score or likelihood to get a mortgage or loan?

Or does it genuinely just vanish out of existence like it was never there and doesn't ever effect my financial life in any way?

(I'm from the UK btw)

Original post by Makijuice

I've been watching a lot of Dave Ramsey videos on youtube and the importance of paying off all your debt. I decided to log into my student finance to check how much my student loan is at...

I graduated 2 years ago and I haven't been earning enough to even start making payments on the debt. I'm starting to wonder, what happens once the debt is written off?

Is it as bad as declaring bankruptcy? Does it go on a record that can effect my credit score or likelihood to get a mortgage or loan?

Or does it genuinely just vanish out of existence like it was never there and doesn't ever effect my financial life in any way?

(I'm from the UK btw)

Hi @Makijuice

Honestly, I have had the same questions going through my head recently.

There is so much information on the Money Saving Expert website that helped me wrap my head around some of it. I would recommend having a look on their and see if you can get some answers. You can access it here.

One thing I do know it that nothing is set in stone and things can change quickly!

Anastasia,
BCU Student Rep.

Original post by Makijuice

I've been watching a lot of Dave Ramsey videos on youtube and the importance of paying off all your debt. I decided to log into my student finance to check how much my student loan is at...

I graduated 2 years ago and I haven't been earning enough to even start making payments on the debt. I'm starting to wonder, what happens once the debt is written off?

Is it as bad as declaring bankruptcy? Does it go on a record that can effect my credit score or likelihood to get a mortgage or loan?

Or does it genuinely just vanish out of existence like it was never there and doesn't ever effect my financial life in any way?

(I'm from the UK btw)

Student Loans arent like other lending. It gets written off after 30 years from graduating.

On the bankruptcy issue, that remains on your file for 6 years and can impact future lending applications too.

Student Loan wont be written off because of bankruptcy either like other lending as it comes from your gross income if you earn enough (again, different from other lending)

Is it bad if your student loan gets written off?

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