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Moneyfacts: Student credit threat justified

Britain's students should be more responsible about their personal finances, Moneyfacts.co.uk suggested yesterday.

The comments follow recent reports, which stated that youngsters defaulting on their student loan repayments would adversely affect their credit rating.

In turn, this could make taking out high street credit, such as for a mortgage or an unsecured loan, more difficult.

However, head of personal finance at Moneyfacts.co.uk said that this warning could represent a valuable education for students to be more careful with their money.

"All borrowing is done on a trust basis - at the end of the day, they lend you money based on the fact that you are going to pay it back at some point," she commented.

"It is a lesson to be learned for the future [if] you take out a student loan and you don't pay it back…you wouldn't expect to take out a mortgage, not pay it back and get away with it."

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