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Student loans: bankruptcy can't help – but an IVA can

According to the Student Loan Company, in an article published by the Daily Telegraph, thousands of young people are using bankruptcy as their route out of debt – despite the fact that the Student Loan itself cannot be included in a bankruptcy.

Fortunately, student loans can be included in an IVA – we’ve done several of these recently and had it confirmed today that the Student Loan Company is still looking favourably on reasonable IVAs.

However, the person we spoke to in the SLC’s legal department also told us that this may not always be so. We inferred from his comments that this anomaly may be removed, perhaps in the near future.

We hope it isn’t: Dissolve Debt believe that would be against the spirit of the new Simple Individual Voluntary Arrangement the government looks set to introduce between autumn 2006 and spring 2007. If you’d like to see what the Telegraph said click here.

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