Are you in Debt? | University of South Wales

Don’t ignore your financial difficulties

Many students find student funding tricky to live on – some debt it probably inevitable. But make sure it’s both manageable AND doesn’t affect your credit rating. Let us know in the Student Money Advice Team if you’d like some advice.

Student loans

These are designed to leave you with a manageable debt that you won’t pay back until you’re earning above a certain amount of money. For that reason, they’re classed as separate to any other debts you might incur during your studies.

Other debts

These could include rent, energy, food and socialising. It’s up to you to make sure you’re debt is kept to manageable levels – and that the people you owe money (your creditors) are fully aware of your situation.

Debts have two main categories:

1. Priority debts

Make sure you repay these, as these are the actions a creditor can take against you:

- Rent / mortgage debts could lead to eviction or repossession

- Service debts (e.g. energy) could lead to disconnection

- Unpaid court fines can result in imprisonment

- Council Tax doesn’t apply to most students as long as you follow our Council Tax guidance – otherwise you could be taken to court, fined, even imprisoned

2. Non-priority debts

These are debts where a creditor can only take limited action against you – you can contact them to discuss your financial difficulties and hopefully come up with a suitable arrangement for you and them. Ultimately though, failing to repay can lead to a County Court Judgement (CCJ) that stays on your credit file for six years:

- Bank overdrafts

- Credit card repayments

- Unsecured loans

- Catalogues

- Gambling