Students Choose Debt Relief Orders to Clear Student Funding Debts

According to recent news from student funding and finance specialists Student Money Saver, many students are facing difficulties as a result of student borrowing and consequently, one in four students are facing insolvency.

Official figures have revealed that many 25 to 34 year olds are turning to Debt Relief Orders (DROs) as a way of escaping their money troubles.  Student Money Saver told the shocking news that since launch in 2009, The Insolvency Service has issued 44,000 DROs, one in four of which was for a recent graduate.

The service allows those struggling with up to £15,000 in debt to write it off subject to terms and conditions.  To qualify, the person must have no more than £50 disposable income a month and have savings and assets less that £300.

Although student loans are not covered by the Debt Relief Orders, a spokesperson for the Consumer Credit Counselling Service revealed that it was a key factor as to why so many young people were becoming insolvent.

Student Money Saver compared living today to that of graduates’ parents at the same age.  Many would already own their first house and have a comfortable pension, instead, today’s youngsters struggle with rising debt, unemployment and rising house prices.

Student looking for more information on student funding, tips on money saving and student offers, simply visit Student Money Saver.

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