Student in Trouble!!

LeeSampson

So i've been a student for 2 years and opened a Santander student account in the summer of 2010, it started with a £250 overdraft, before increasing to £1000 when i got my loan and £2000 in the summer of 2011. So i've had this £2000 overdraft for a year now and i've never been out of it. Santander have sent me a letter saying they are decreasing my overdraft to £1000 on the 1st september. I've had it sent to an underwriter and they completely refuse to do this so basically i have to give them £1000 pounds by then or i'm going to be charged on it.

i have only just managed to secure a job and will be working 25 hours a week at £6.08 an hour. i'm not sure what i should do. I have a basic cash card account but no money is paid into it. Would i be better of asking santander if they can stop the charges and allow me to pay it off at a weekly rate (50 pounds a week for 20 weeks). i have no idea what to do as if they take this off i'm going to lose all of my loan and won't be able to pay my rent.

i'm desperate for help and would greatly appreciate it.

Kind Regards

PollyOnAMission

Is it likely that you would be accepted for a 0% on purchases credit card?

LeeSampson

No, i have a poor credit rating so i would seriously doubt it, i personally would not look at a credit card though, as you can tell im not the best with money

Danny11

LeeSampson wrote: »

So i've been a student for 2 years and opened a Santander student account in the summer of 2010, it started with a £250 overdraft, before increasing to £1000 when i got my loan and £2000 in the summer of 2011.

£2000 is not that much debt. It might seem it as a student but if you get a decent job when you graduate you could be on £30,000+ making it childs play to pay off. DONT PANIC!

LeeSampson wrote: »

So i've had this £2000 overdraft for a year now and i've never been out of it. Santander have sent me a letter saying they are decreasing my overdraft to £1000 on the 1st september. I've had it sent to an underwriter and they completely refuse to do this so basically i have to give them £1000 pounds by then or i'm going to be charged on it.

More experienced people than me will be along soon. You can fight this .

Also, I mention this later but they do realise your a student right? You should have a student account and be treated as such!

LeeSampson wrote: »

I have only just managed to secure a job and will be working 25 hours a week at £6.08 an hour.

Are you going to be entering your 3rd year this September? If so that's a terrible time to be starting a 25 hour a week job! What are your current grades? If your only just getting a 2.1 so far then it's going to be hard. If you believe you will get a 2.2 or less then you really need to think hard before taking on so many hours. A 2.2 is basically nothing in the world of work, most of the graduate schemes filter out anything 2.1 or less making a 2.2 worthless!

I would call the job and ask for less hours. Either that or quit your degree because working 25 hours and trying to do a 3rd year is !!!!ing in the wind big style!

You need to contact student counseling in your university and ask them for advice/support. Most universities have pretty strong support networks and sometimes extra financial support access too.

You could also look at the Student Room Wiki:

thestudentroom.co.uk/wiki/TSR_Wiki

Bound to be some articles and threads about student debt. I would read up if I were you.

LeeSampson wrote: »

I have a basic cash card account but no money is paid into it. Would i be better off asking santander if they can stop the charges and allow me to pay it off at a weekly rate (50 pounds a week for 20 weeks).

You should talk to Santander and explain your a student! They have student accounts which would delay your payments till you graduate plus all sorts of other perks. You really need to talk to them.

At the end of the day you are a student and hopefully doing a degree that will get you into a great career with lots of potential. Banks know this and they will often fight to get customers like yourself. It feels to me like your in the "Pleb with no opportunity pile" and are being treated as such. I think you need to get them to place you into the "Chance of a quality customer for years to come" pile ie: The Student Account holder!

LeeSampson wrote: »

I have no idea what to do as if they take this off i'm going to lose all of my loan and won't be able to pay my rent.

They won't do that, not if you TALK to them and explain your circumstances. At the end of the day your a student, graduate customers are highly sought after in banks. That's why they offer really good deals etc etc...

LeeSampson wrote: »

No, i have a poor credit rating so i would seriously doubt it

Everyone thinks they have a terrible credit rating. You need to check yours! Get over to Experian for your free trial!

Seriously dude, this is no time to play with your head in the sand. Find out the facts on everything because there is no debt problem that cannot be fixed. Thousands on this forum will tell you that! Even thinking about your problem for like 5 minutes I can see 3/4 possible information sources and ways to get yourself sorted.

LeeSampson wrote: »

I personally would not look at a credit card though, as you can tell im not the best with money

NO NO NO! Credit cards with a 0% deal for like 10 months will:

a: Give you breathing space
b. Allow you to take a much smaller job
c. Spread the repayment of £1000 over a much longer period
d. Give you time to become an MSE!

"I'm not the best with money" is a painfully crap excuse! Become good with money! If you go through life with that attitude then you should quit your degree and get a job in KFC. Seriously dude, this debt is a wake up call! WAKE UP!

To make it easy you have 4 options, research them all!

1. Continue as you are, fail and get a 2.2 degree/drop out.
2. Check your credit rating and if good obtain a 0% card for as long as you can get, spreading the debt payments out over a good year hopefully.
3. If your rating is good talk to another bank about a student account and explain your circumstances.
4. Talk to Santander and explain to them your circumstances and make sure they know your a student.
5. Talk to student counselling and see if there is access to extra funding.
6. If all above options fail. Get a basic bank account, switch student loans to that account and tell Santander to stick it. Go for a DRO and take a stress free year to make sure you get a 2.1 or higher.

Your education and future is alot more important than £1000. Santander should know this and possibly would if they had you on a student account.

Racheldevon

Avoid the credit card option!

You should have a student account with your bank - these generally offer a 0% interest free overdraft at least until you have graduated. For example the natwest one I had offered 0% up to £2000 until one year after graduating when it dropped to £1500/1000 interest free. So check whether you actually have a student account, and if not perhaps speak to them about changing it.

Go and visit your student welfare team and speak to someone in the finance dept. They will be able to advise on whether you can access a hardship grant for example which doesn't have to be paid back.

I would think very carefully abuot working that many hours whilst in your third year. It's likely to have a heavier weighting towards yuor final degree mark, compared to your second year. If you end of with a 2.2, as someone else said above, it's not really worth it. Perhaps you can work during the holiday periods and much less in term time?

Aryndeneth

This is going slightly off-topic from your financial concerns so I'll be very brief but, as a professional Careers Consultant and a previous hirer/recruiter of students a 2.2 is not worthless and a grad scheme is not the only option after graduating. So much more is taken into consideration. Speak to your Uni's Career's service if this is a concern for you.

awayinchina

you also have another option. OPen a new student account with another bank get the overdraft and pay off the whole of the santander over draft with a combination of new overdraft and your pay and then close the account.
that might be an options?

[Deleted User]

if they are just going to charge you interest on the £1000 then it wont be as bad as you imagine as money goes into the account the interest will decrease,its only if you pay no money at all into the account that it could e.g cost you £200 a year,thats 20%apr on the £1000

LeeSampson

Thanks for the reply guys, i did a foundation degree, followed by a year on web design. however i decided it was the wrong course for me and changed this summer therefore im starting my first year now. This is reason santander is taking my overdraft of me because their saying that i've got a graduate account despite showing them paper work to say i am still a student.

its not the fact that i'm 2000 in debt its the fact i have to pay 1000 to santander by 1st of sept that is the issue. where am i going to find 1000 pound in a month. thats why i wanted to pay them off bit by bit as and when i get money

LeeSampson

and no bank will accept me for a student account because i have a poor credit rating because of a phone bill i failed to pay 2 years ago however this is now paid off.

RAS

Hi

You did a foundation degree in subject A? So as far as the bank are concerned you are a gradaute (you have a degree).

Was the year you spent on web-design a top-up degree, or the first year of another course?
You now intend starting a degree in subject B? is this a top-up degree or the first year of a completely new course (as suggested by your first sentence?

Where do you think the funding is going to come from for your student fees?

You only get a maximum of 4 years funding you studies. If you start a completely new 3 year degree you are hit by two things.
1. You will get no fee or maintenance support in years 1 or 2 because you have already had three years support, only for year 3.
2. because you already have an equivalent or equal qualification, you are hit by the ELQ rules, which means you get no funding for year 1 or 2 which are at the same or a lower level than the course you have already studied.

Can I suggest that you speak to your union and univwersity student welfare people and maybe student finance urgently?