Student Bank Accounts:(

Horasio

They encourage students with free overdrafts to build up a debt.

They are so headstrong and they don't listen to anyone - the banks are taking advantage of students by encouraging them to get into debt.

Agreed overdrafts are fine if given to people with a responsible attitude.

I am sure there are loads of responsible students but the ones who are not are being encouraged to ruin their lives.

dmg24

Students are also adults. No one is forcing them to spend money.

BargainHunterCat

dmg24 wrote: »

Students are also adults. No one is forcing them to spend money.

Well said.:D

Sadly, though adults aren't necessarily very clever with money...

We can argue that banks are trying to get all of us into debt hence why MSE exists!!

gyzmo

Of course, if such a vital feature of society (decent higher education) was provided free of charge instead of students having to take loans out, the situation would be a lot better....

Mark7799

When I worked in banking, our policy was to encourage the students to use their overdraft limits before their student loans were fully utilised - the overdrafts were interest free and the student loans accrued interest (yes that did tie them to the Bank but it was a form of MSE). Students couldn't survive without SOME form of borrowing but as with all borrowing it needed some self-responsibility.

To the OP, does your wrath here have anything to do with other threads you've posted recently?

Horasio

Yes it obviously connects but I was bought up not to use them as it encourages you to overspend.

I am worried it will create bad habits. I have a facility for the odd time I accidently overdraw which I use very rarely.

What happens when you graduate?

btw. Uni is free in Scotland and he lives at home, gets a basic allowance but doesn't work to pay for his luxuries - he doesn't need to build a debt

peter_the_piper

Mark7799 wrote: »

When I worked in banking, our policy was to encourage the students to use their overdraft limits before their student loans were fully utilised - the overdrafts were interest free and the student loans accrued interest (yes that did tie them to the Bank but it was a form of MSE). Students couldn't survive without SOME form of borrowing but as with all borrowing it needed some self-responsibility.

To the OP, does your wrath here have anything to do with other threads you've posted recently?

My daughter is entitled to a grant which she puts into a high interest account (approx 5%) from which she transfers any amount she needs to clear the overdraft each month. The overdraft is minimal at any one time as she's been brought up to be careful. Any money left over from the grant when she leaves Uni will be left in there to build up for a mortgage deposit. As the loan repayment is about 2.5% and bank interest about 5% she is on a winner here.

IvanOpinion

What is the alternative ... don't give students loans? Only the elite and rich get to go to university? Personally I would like to see more companies offering and funding scholarships, however many students would not want to give up their holidays in return.

Ivan

Horasio

IvanOpinion wrote: »

What is the alternative ... don't give students loans? Only the elite and rich get to go to university? Personally I would like to see more companies offering and funding scholarships, however many students would not want to give up their holidays in return.

Ivan

I don't disagree with loans for students when they really need them such as for living away from home and not for luxuries when they won't work to get them when they are perfectly capable of doing so.

It would good for their work experience if they could work for a scholarship in their very long vacations - they are even longer than they get at school!

There are some very responsible students but some are plain dumb about money management. I worry banks are using them to make some very lucrative customers for themselves in the future and people build up some serious debt.