Graduate student and student overdraft

Christa1

My son has just finished his final year at uni. We always pay his overdraft off for him, in his 3rd year he was allowed with a Nat West student account to be overdrawn by £1600.00. We weren't sure when to pay this off so he went to his local branch at Uni who said he has a year from graduation to pay the first £600.00, then another year to pay the other £1000.00 without any interest being charged. This seems too good to be true, I have looked at their site and can't find any mention of this.
Does anyone have experience of this and can tell me it's correct? He is going back after a gap year to do a masters, can he get a student :beer: overdraft for this too?
Thanks

rubuhoeikanaika

Christa1 wrote: »

My son has just finished his final year at uni. We always pay his overdraft off for him, in his 3rd year he was allowed with a Nat West student account to be overdrawn by £1600.00. We weren't sure when to pay this off so he went to his local branch at Uni who said he has a year from graduation to pay the first £600.00, then another year to pay the other £1000.00 without any interest being charged. This seems too good to be true, I have looked at their site and can't find any mention of this.
Does anyone have experience of this and can tell me it's correct? He is going back after a gap year to do a masters, can he get a student :beer: overdraft for this too?
Thanks

For your second question, yes - depending on the bank. See the student accounts article and the search function.

rubuhoe

[Deleted User]

1- Most banks convert your student overdraft into a graduate overdraft for two years with no interest payable.

and

2- He should be able to get a student account for a Masters

melancholly

Shivster wrote: »

2- He should be able to get a student account for a Masters

yeah - with natwest I just walked in with my student card at the university branch and they changed they changed the account from being a gradute one back to a student one again.

koksrob

yeap. you can still be a student account if doing a masters.
when leave you have a year and then they half your free over draft, then anouther year and its gone.

this is with natwest. -im making full use of it

bmouthboyo

Hi i am graduating this year and that is true with the natwest account, well almost.

You have 1 year after graduation to get it down to £1000
Then another year to get it down to £500
Then by last year the remainder

OR

You can take out there interest free loan that covers the £1600 total and pay back in installments (roughly 36 payments of £45). This is easier if you think the account holder might find it hard resisting the money in the account.

The link to the T&C is here:

http://www.natwest.com/global_options.asp?id=GLOBAL/MEDIA/88

Hope that helps

Christa1

Thanks for all your comprehensive replies.
If I pay the £1000.00 a year from graduation, that will still leave £600.00 owing, I take it this can be carried forward to a student account which he will then be for his masters, thereby reducing the OD limit for that year? Just seems too good to be true, as there is nothing in it for the banks really, a bit like 0% finance.

pinkshoes

I had a Natwest account at uni, which turned directly into a graduate account after my masters. The overdraft went from £2000 to £1500 straight away, and they've just written me a letter, exactly 3 years after graduation, saying my overdraft facility has now been terminated.

What a nice parent you are paying off your son's overdraft! My parents made me take nightshift jobs in various factorys to pay for my uni life!!!