Students owing their banks or financial institutions large sums may have problems qualifying for more personal loans until they are in their late 30s, it has been warned.
Moneynet warned independent financial advisers (IFAs) that clients should be told to carefully manage their credit files if they have large student debts.
The reason for this is that student debts could pose a problem when people apply for a mortgage, personal loan or other credit and it comes to light that they have adverse credit problems.
IFAs should re-address the "financial landscape", warned Moneynet chief executive Richard Brown.
"Their traditional client base will have less money during their twenties and early thirties to put into pensions, investments and savings," he pointed out.
"But, there will always be a market for IFAs, as graduates will still tend to get married, buy a home and have children and therefore need products like life insurance, income protection and mortgages."
Most students graduate from university with debt of around £15,000, official government figures show.
The introduction of top-up fees in 2006 is likely to add to the growth of student debt. And estimations by some high street banks revealed that the average debt for graduates could double by 2009.
Graduates suffer for years from adverse credit problems
Graduates suffer for years from adverse credit problems
Mon, 12 Sep 2005
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