Piggy's Student Bankruptcy
As a student I was no different to anyone else. With my bank account open, overdraft available and student loan waiting to be signed my journey through university began. I was more than ready for this step into independence and never envisaged the serious debt problems and consequential bankruptcy a few years later.
The course I studied was Electronic Systems Engineering and it lasted for four years. The third year of the course was spent working in industry. The semester breaks were also spent gaining experience and earning money for the following year. In the final year of the course I decided electronics was not for me.
I therefore embarked on a one year self study course to make the transition from Electronics into Finance. There were student loans available each year at university and I had to finance my period of self-study through a bank loan. I didn’t spend outrageously because I could not afford to although I did have a fairly active social life as all students do.
When arriving at university I certainly did not expect to leave with the debt I did. The truth is, the debts would have been a lot less if I went to university sure of the career path I wanted to follow. During the time of my A-levels I wanted to go to university simply because of the perception of a great job and great fun. The promise of a job with great salary prospects made the trap into debt so much easier.
This appeared to be a common misconception amongst students. “Another loan won’t matter. It’s for my education and I’ll easily pay it back after university”. For some this may be the case. For the majority of people it’s just a dangling carrot and the reality couldn’t be further from the truth.
For many, the amount of debt built during university can be serviced through a job paying an average salary. For me the problem came after I finished the four years at university and embarked on the period of self-study. This year added about £10,000 to my debt. Further to this I struggled to find a good job after the course finished. The debt mounted further and when I did manage to find a job there was clothes to buy and bills to pay. It then totalled at £33,000.
I continued to repay my debts on time but I had very little disposable income. When I then started my own business with two partners it remained a struggle at first and then became slightly easier until the market turned and the business became insolvent. It then became impossible to service my personal debt and I also had to contend with the £450,000 of business debt.
Ironically, even though I have been through bankruptcy I still have £8,000 of student loans to repay. I know you used to be able to wipe student loans but unfortunately that loophole was closed before I petitioned for my bankruptcy.
I really feel sorry for students now. It is almost expected that you go to university and the fees are so much higher. If I had my time again I would be questioning whether I would go to university at all. There are so many people who did not go to university and still appear to do well.
Further reading from my bankruptcy site:
Student loans and Bankruptcy
The course I studied was Electronic Systems Engineering and it lasted for four years. The third year of the course was spent working in industry. The semester breaks were also spent gaining experience and earning money for the following year. In the final year of the course I decided electronics was not for me.
I therefore embarked on a one year self study course to make the transition from Electronics into Finance. There were student loans available each year at university and I had to finance my period of self-study through a bank loan. I didn’t spend outrageously because I could not afford to although I did have a fairly active social life as all students do.
When arriving at university I certainly did not expect to leave with the debt I did. The truth is, the debts would have been a lot less if I went to university sure of the career path I wanted to follow. During the time of my A-levels I wanted to go to university simply because of the perception of a great job and great fun. The promise of a job with great salary prospects made the trap into debt so much easier.
This appeared to be a common misconception amongst students. “Another loan won’t matter. It’s for my education and I’ll easily pay it back after university”. For some this may be the case. For the majority of people it’s just a dangling carrot and the reality couldn’t be further from the truth.
For many, the amount of debt built during university can be serviced through a job paying an average salary. For me the problem came after I finished the four years at university and embarked on the period of self-study. This year added about £10,000 to my debt. Further to this I struggled to find a good job after the course finished. The debt mounted further and when I did manage to find a job there was clothes to buy and bills to pay. It then totalled at £33,000.
I continued to repay my debts on time but I had very little disposable income. When I then started my own business with two partners it remained a struggle at first and then became slightly easier until the market turned and the business became insolvent. It then became impossible to service my personal debt and I also had to contend with the £450,000 of business debt.
Ironically, even though I have been through bankruptcy I still have £8,000 of student loans to repay. I know you used to be able to wipe student loans but unfortunately that loophole was closed before I petitioned for my bankruptcy.
I really feel sorry for students now. It is almost expected that you go to university and the fees are so much higher. If I had my time again I would be questioning whether I would go to university at all. There are so many people who did not go to university and still appear to do well.
Further reading from my bankruptcy site:
Student loans and Bankruptcy
You may also like to view my bankruptcy website.
If you have any questions regarding my experience then please feel free to E-Mail me.
posted by Piggy Bankrupt at
3:03 PM
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