Overdraft on student accounts

shareef

Simple question really, though one which I don't seem to be able to find the answer to. All this talk of interest free overdraft, but when isit actually due to be paid back before interest kicks in, it obviously won't sit like that forever. Isit all due after the course? Halifax are offerening £2700 a year, so at teh end of it I could potentially rake up £9000 overdraft, or does it not work that way. Whats worse is, my student friend who is already one grand overdraft doesnt seem to have a clue about what and when to pay it back! any help greatly appreciated!

CM86_2

I don't think it increases year on year, they just mean they'll offer you that for three years.

But don't forget it's not free money, it's money you can't afford to spend on stuff you don't need! And when you graduate there's no guarantee it'll remain interest free.

shareef

Thanks for the quick reply!

Paying it back won't be an issue, but thats exactly what I want to know. For how long and what are the conditions are these for staying interest free, I can't seem to find that info anywhere!

CM86_2

I think it'll depend on your circumstances at the time, i.e. probably won't be able to find out now! A lot of the banks offer good rates on graduate loans to pay off your overdraft.

misskool

Big banks will decrease the overdraft over 3 years as you graduate. As the new overdrafts are a LOT more than I'm use to I have no idea how they plan on decreasing it.
I know that with HSBC and Natwest, they go down by 500-750 each year depending on how big the overdraft is by the time you graduate.
So, if I have 1750 when I graduate (june 2006), in june 2007, it will be 1000.
June 2008, will be 500 and then should be back to 0.