Student/graduate bank loan

Dicdocs

Hello

I am enquiring on behalf of a family member who is unable to get anywhere with this.
He has had a Student Loan account with NatWest since 2017 and has now paid over £3.5K in interest, but has still not paid off the loan and doesn't have the ability to. 

Having never been a student I don't get this, but surely he shouldn't still be paying over £50 per month on this loan 6 years later!

Help

silvercar

Sounds like a standard loan from NatWest marketed at students. I know they used to offer them when people finished university and needed something to tide them over between university and work. It may be that the interest rate was low initially and has now increased. Your relative needs to look at the paperwork to see what interest was charged and what the agreed repayment schedule was.

400ixl

I assume you mean a student account, as in an account targeted at students.

If so, many of these have overdraft facilities. Did your family member go into their overdraft and has never managed to pay it all back, as overdrafts do not have end dates.

Or was it a formal loan which they have not been making the full monthly payments and therefore has fallen behind and not cleared the loan?

You really need to get your family member on here to give details as without these it is difficult to answer.

Dicdocs

This is the latest statement for the account. It has been renamed. What can be done? The owner of the account can no longer afford to pay. Thanks

silvercar

Select account is NatWest’s basic account. Quite possibly a student or graduate account would convert to a select account after the relevant time. Interest could be charged at a much higher rate for an unauthorised overdraft than one within the credit limit. The unauthorised overdraft rate is about 39%!

Your friend needs to speak to the bank and discuss options, maybe converting to a loan maybe an option.