Student/Graduate advise needed

BenH2

Hi,

I became a Student in September 2003 and got a Natwest Student account with a £1000 overdraft, which has now increased to 1250. However, I dropped out after the first year, and have not told the bank for fear they would want the overdraft back. I've read on the web site that my acocunt should automatically become a Graduate account the July following the last year of my course. Anyone else have experience of this?

I am now working full-time and have been for 18 months, with my salary paid into this account (I earn around 18k pa). NW have never contacted me reagrds the account. However, I am anxious about paying the O/D back. I've read on the site that they do a Graduate Loan (0% interest, used to pay off the overdraft, and then you pay the loan back) - I'd be very interested in this.

What do you think would be the bank's response if I fessed up and told them I was no longer and student and never graduated. Would I still be eligible for the Graduate account? I don't want to suddently have to start paying interest on the O/D at standard rates. Thanks for any replies or advise.

Eels100

Basically I think you'll find in your account's terms and conditions that you should have informed them at the time!

If you want to play it straight you should 'fess up but show willing to enter into a payment agreement. I doubt they'd go after you for interest over the last few years, but they will want their money back, and will probably ask you to take out a loan to do this.

If you want to try and brave it out, I wouldn't even consider the graduate loan thing. You'd be far better off just working out a decent budget and gradually repaying it. Live on a shoestring for a few months and watch it disappear, and maybe nobody will ever know.

I have a similar arrangement (am now into year 2 after graduation, OD limit is reducing this year from £1500 to £1000) and I am just slowly working my way out of it. I'm in no rush though, as it's effectively free money, and I'm all above board, but in your case I'd be wanting to clear it quicker. None of this is from anything other than personal opinion though, maybe someone with some real knowledge will be along soon!

RichyRich

I'd be tempted to take out a loan from somewhere *other* than NatWest, pay off your overdraft and then tell them that you no longer wish to have student or graduate facilities on your account.

This should change your bank account into a normal account, you can pay your debt off in regular monthly amounts and NatWest never need know no other.

Rich

BenH2

Thank you both for your replies. Taking out a loan with interest isn't something I'd jump at, but if I get into a situation where NW insist on it being paid back I may consider it. I'd much rather take the 0% interst overdraft repayment loan, but its whether they'd offer it to me. I was also considering getting another current account with no O/D and then paying into the NW account per month to pay it off, but not sure whether theyd offer me the graduate interest free loan if I did this. What a mess!

poorgraduate

I have a NatWest Graduate Account and you don't have to get a 0% o/d loan from NatWest.

My 0% O/D was up to £2,000 when I left.

A year later it was £1,000.

This June it will be £500 - June 2007 it will be ZERO!!!

This is an automatic system that NatWest implement.

There may be a problem because you didn't graduate - but from memory I never produced any documentation to say I had.

I just visited my branch and told them I'd graduated and what do i do next and they told me the above info and changed my account from a Student account to a Graduate Account.

Hope it helps.

BenH2

Thanks for your replies. I think I will keep quiet and see if they upgrade my account.

Modjo

Yes, they convert at the date of expected graduation.

I would just "forget" to mention it to them and let nature run its course...

I'm sure the Royal Bank (NatWest) can afford it!

miller

BenH2 wrote:

I've read on the web site that my acocunt should automatically become a Graduate account the July following the last year of my course. Anyone else have experience of this?

In my case they sent a letter and advised that it has been automatically converted. No documentation/branch visit needed.

jonesMUFCforever

AFAIK you have to show means of Graduation before your account is upgraded.