Students told to inform lenders of change of address

Graduates should ensure they inform finance firms such as the Student Loans Company of any change of address, one finance expert has stated.

Samantha Owens, Head of Personal Finance at Moneyfacts, warned degree holders that they must inform lenders if they move house, particularly as deferred payments on a student loans are now passed on to credit reference agencies.

Although this did not used to be the case, students are being encouraged not to forget to pay their student loans back with the warning that it will affect their credit rating in the future.

'[If] you're not paying [your student loan] back and you're accruing penalty charges, it is going to be on your credit reference. So it is worth bearing in mind to keep these people updated,' she said.

People may simply be getting 'lost in the system' if they move address frequently, Ms Owens noted, but keeping addresses updated is a good habit to get into.

She added that if credit card bills are sent to the wrong address it would mean the holder will be subject to a penalty charge for a missed payment.