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What to do with a student bank account when you've dropped out?!

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I've got a Natwest Student bank account but left my university course at the beginning of my second year (Nov 08). I haven't told the bank yet as I may be starting a new course in September.

If I don't end up studying elsewhere in September I'll have to tell the bank that I'm no longer a student, and I was wondering if anyone else has had to do this? The problem is I've been living in my overdraft for the past 12 months and want to try and pay it off before I let them know I'm not a student. I'm worried that they'll demand repayment immediately or start charging me interest on my overdraft!

Any help/advice would be much appreciated :)

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Get a job and pay it off?
  • robpw2
    robpw2 Posts: 14,044 Forumite
    Part of the Furniture Combo Breaker
    you could see if they cancel your overdraft if theyll give you the option of taking a loan for the same amount and paying off monthly but you will have ot pay intrest on loan


    Slimming world start 28/01/2012 starting weight 21st 2.5lb current weight 17st 9-total loss 3st 7.5lb
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  • MrsManda
    MrsManda Posts: 4,457 Forumite
    As a non-student for so long you are breaking the T&Cs of your account so it could be taken away at any time. As they have no idea that you've dropped out unless you tell them they are likely to only transfer your account to a standard current account once you've had the account 3/4yrs. If you tell them you've now dropped out you are likely to be able to negoiate a repayment plan of your 0% APR OD.

    Things to bear in mind if you do not tell them:
    a) if they find out without you telling them then you could be charged with fraud (not sure how strict the law is on this)
    b) if you keep your student account and become a student again in September the bank will presume you are going to graduate July '10 so your account will turn into a graduate account at that point.
  • Lokolo wrote: »
    Get a job and pay it off?

    How helpful :rolleyes:

    I have two jobs. Since leaving my course I actually had three jobs at one point. I'm slowly paying back the overdraft but I still have bills to pay.

    Thanks for the advice MrsManda. I've considered the things you mentioned about not telling them. I will wait until August to tell them, I think, when I know exactly what's happening in September. I'll either be telling them that I've begun a new course, or that I'm no longer a student!
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If they find out before August your overdraft can, and probably will, be withdrawn completely. If you inform the bank you will probably be allowed to carry on as you are or go onto a graduate account temporarily. You can't have any student funding going in, so it's pretty obvious if they check your account.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • jesse2609
    jesse2609 Posts: 35 Forumite
    Lokolo wrote: »
    Get a job and pay it off?
    :rotfl:I agree.
  • lightisfading
    lightisfading Posts: 1,288 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I had this with HSBC - one day they turned around and demanded the overdraft paid back. As I wasn't earning much I could only afford £50 a month on a loan which turned £1250 into £3000+ :mad:
  • HopeAndDriftWood
    HopeAndDriftWood Posts: 2,514 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Tell them before they realize.
    If your student loan doesn't go in, they'll either guess you've dropped out, or they'll think you have another student bank account, and it will be withdrawn. Then you'll pay interest, and get into more debt.

    Go in to your branch, and talk to a manager. Explain your circumstances, and how you plan to pay it off, and when, and see what they can do. They let my friend keep hers interest free for a year, so that she could pay it off, I'm sure they'd do the same for you if your honest with them.
    Signature down for maintenance :rotfl:
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