Student Withdrawn from Course, Student Account?

DunPin

I've been asked to find out what happens to a student bank account when the student is withdrawn from the course, does he have to inform them that he's been withdrawn from the course and no longer eligible for the account or does the university?

What about the overdraft and credit card, he got a package deal with HSBC with an overdraft of £750 and a CC of £500, both maxed out (the silly !!!!!! :eek:), would he have to pay them back straight away or can he make the minimum payments compared to paying it off in full when he had the loan?

Any help would be much appreciated

EarthBoy

The university won't tell the bank anything, because they don't know which banks their students have their accounts with. It is up to the ex-student to inform their bank of their new circumstances.

DragonQ

It's up to the ex-student to inform the bank that they are no longer a student. They will not be asked to pay back the overdraft immediately but they will lose the 0% interest rate, meaning they had better pay it back in a timely manner to avoid spiralling further into debt.

[Deleted User]

When I left uni my student account continued for about a year as I hadn't told the bank (HSBC) that I'd finished. It continued despite me clearly having a regular income of a couple of thousand pounds a month from salary going into the same account.

Read the T&Cs about this but I personally wouldn't be in too much of a hurry to inform the bank. Use the time to pay back as much as possible while the OD is at 0% so focus on the CC at first. The Student Loans Company (if applicable) is another matter - tell them straight away as if they make an overpayment they will request it back in full - I speak from experience!

212

Will he be returning to university? Starting again somewhere else etc?

I ask because I had the same situation (withdraw in the ~Feb a few years ago). Asked the bank in the October (once I was back at uni) to add more years to my account and they just did it with proof of the new course (a current student status letter). So if he's going anywhere else I'd hang on until Sept/Oct when he's a current student again and just tell them then - then the 0% etc should be extended (although most banks will have a limit).

As for SFE - as stated above, you should tell them though. I didn't as I desperately needed the money. They paid me a whole term they shouldn't have, plus they wanted to pro-rata the term where I quit and get most of that back).

They did demand it back, but as I was going back into uni and after looking at my circumstances, they eventually agreed to dock it from the next years payments (1/3 each time), but they can put a block on any further funding, and demand the lot back, if they think you're messing them around - they threatened me with it

- and if you don't tell them, the uni generally will (whilst still getting their fees!!!)

Caladan

Basically - Don't inform the bank. In fairness, most staff wouldn't take you off student terms anyway, it's just bad for the customer and doesn't really gain anything for the bank (whereas leaving you on student terms even though you aren't eligible shows they're on 'your side').

You aren't doing anything wrong by not informing them, although if you find a full-time job and go to apply for grown-ups credit they'll expect you to be off student terms before you can get it.

If you ARE taken off student terms, you'll just be put on standard. Lending wouldn't we pulled from under your feet unless you weren't paying money in or the account was run terribly.