University graduates are facing a strong possibility of having to use IVA's in the future

It is becoming increasingly likely that graduates will have to use IVA’s and debt management plans in the future as a result of an increase in student and personal loans. This increase has been caused by university cuts forcing students to pay for their owns books, trips and fundamental pieces of equipment. Most university students will also have to fund their accommodation and living expenses with loans.

As it is becoming harder to find jobs as a student, most leave university with huge debts that result in a need for the use of debt management plans.

Paul Contrell, who is the head of policy at College Union, explains how students are now facing unreasonable expenses: “There have been additional costs for students. One quite interesting thing to pick up on is that they are now expected to pay for things themselves which used to be paid for as part of the course.”

Although IVA’s are generally positive programs that help resolve large debts, they are not ideal for graduates looking to put deposits down on first time properties. They also leave students will an immediate 6 years bad credit rating. For fresh faced graduates, this will make taking out loans almost impossible.