Thursday, 21 November 2013 16:56

Student loans while bankrupt?

It may surprise many people but it is a common question that we get asked "can I have a student loan whilst being declared bankrupt?". The very short answer to that is "Yes".

Unfortunately though that only actually refers to loans from the student loan company. Other types of finance such as unsecured loans to anyone, including students, whilst they waiting to be discharged as bankrupt are very very unlikely to happen. Those people in bankruptcy can only take out a loan of up to £250 without telling their lender that they are a bankrupt.

The reason that the student loan company can offer loans to bankrupt is that technically it isn't really a loan at all in the normal sense. Loans from the student loan company are exempt from bankruptcy rules. This means that even after someone has been through bankruptcy proceedings, they still owe the money to the SLC. So in effect that debt is covered for life and death of the borrower.

The loans that are available through this site are not exempt from bankruptcy rules and therefore lenders are very unlikely to ever lend to those close to or actually into bankrupty. 

"Loans For Students" is a trading name of Quick Loans Ltd is registered in England and Wales. Authorised and regulated by the Financial Conduct Authority under registration number 763132

Offers of credit are only available to people over the age of 18 and based in the United Kingdom

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