Student/graduate bank loan

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

Comments

  • silvercar
    silvercar Posts: 46,721
    Academoney Grad Name Dropper Photogenic First Anniversary
    Ambassador
    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.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • 400ixl
    400ixl Posts: 2,593
    First Anniversary First Post Name Dropper
    Forumite
    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.
  • 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
    silvercar Posts: 46,721
    Academoney Grad Name Dropper Photogenic First Anniversary
    Ambassador
    edited 7 December 2022 at 8:50PM
    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. 
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
Meet your Ambassadors

Categories

  • All Categories
  • 341.6K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.7K Work, Benefits & Business
  • 605.8K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards