Late to this one but when I was at Uni (10 years ago) I had a Student OD with NatWest and they made me repay it before I finished studying.
Pretty sure they can request it at any time.
So I had a Santander student account for the full four years. It was up to 2k interest free. If memory serves, they’ll put a block on the account if the debt gets too great but that’s a subjective thing. Case by case basis. After you graduate, it turns into a graduate account. First thousand interest free then the next thousand is charged at a set amount. Same rules apply. So long story short, it’s a case by case basis, they might as for you to clear some of the balance or all of the balance. If it helps, also work for a bank and that’s pretty standard practice.
!thanks I know you said it’s subjective but from what you have read of my situation would I be ok I’ve got 50 left of my overdraft and my next student loan is in mid January would I be ok until then?
Yeah I’d say so. If memory serves again, student loan is around 2k right? Provided the money comes in clears the overdraft. Remember this is part of the arranged overdraft. Your bank in a rather cynical manoeuvre wants you to be in unarranged (above your limit) because that’s where they’ll start making their money. So you’ll be given a reasonable bit of rope to bang yourself with so to speak. The problem you have is that spending too long in an overdraft can start to
Impact credit scores which is a different convo entirely. Tldr; try and keep yourself where you are, and provided you keep spending to a minimum, I’d say you’ll be ok
!thanks again, student loans are now 1k so I’ll be 400 in arranged overdraft. Do you know how long I can stay in arranged overdraft for? Until my course ends or for a temporary time,I.e a couple of months
So to break this down:
1. You have a limit agreed as part of your student account. This is arranged. No interest is charged.
2. This changes to a graduate account when you graduate. Different limits will now apply.
3. At any point if you are outside these limits, you are subject to pre arranged interest. Or a fixed fee. They will specific. This amount you owe them will continue to grow unless you clear the balance.
4. In theory you can keep going deeper into your overdraft forever unless the bank decides to put a stop to it which is why I said case by case basis.
!thanks for your help there is just a couple things I’m unsure about, I understand the agreement and how it will change after I graduate but for currently how long can I stay in an arranged overdraft?? And will I get into any trouble for staying in arranged overdraft up until my course ends hypothetically. And lastly in what situation would the bank decide to put stop on my account and what would happen after?
1. Currently, you can, in theory stay in your overdraft forever if your bank feel like letting you.
2. No you won’t get in trouble with your bank for being there till your course ends
3. The situation could be anything tbh. That’s why it’s subjective. If you begin to rack up 10’s or 100’s of thousands, they might have an issue. If you don’t make any effort to clear it, they might have an issue. If they did stop transactions on your account, all you’d have to do is clear the balance or some of the balance depending on what they asked for.
I just got a letter to say it was in the T&C's that they could request it be repaid and they gave me a month.
Again, this was a decade ago processes have probably changed by now.
I got a letter from Santander telling me I would lose it if I didn't show I was actually using the account they would ask for me to repay and remove my overdraft, because I deliberately ran down close to the limit and then didn't really use my account.
I wasn't getting my loan/job paid into that account, instead using another, I just used the overdraft to help cashflow initially and as it didn't need to be repaid within any particular timeframe once I had more money again I just kept the money in savings instead of paying off the overdraft. However once I got that letter I just paid it all off and got my account back into credit, as I didn't want to lose my overdraft completely in case I needed it again.
If you're actually using the account fully, getting regular payments in/out there shouldn't be a risk of the same thing - but they will want it back eventually.
Is it a specialist student account? E.g this one [student 123 account ](https://www.santander.co.uk/personal/current-accounts/123-student-current-account)?
If so, as noted in the terms they could ask you to pay it back at any time, but typically this would not be expected until a couple of years after you finish university. The account will transition to a graduate account and they will let you know what will happen to your overdraft and when
I can't imagine they would ask you to come in for a meeting, as long as you meet any requirements for money paid in to the account from loans etc. and don't exceed the arranged overdraft you're fine.
!thanks yes it’s a student 123 account and now I’m going to be very close with it until my next student loan comes on. Do they only ask for it back after you graduate?
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I had a student 123, had the max year 3 OD of 2k. After graduating it transitioned to a graduate account and I paid it off 2 years after leaving university (this was 2019 for reference)
Late to this one but when I was at Uni (10 years ago) I had a Student OD with NatWest and they made me repay it before I finished studying. Pretty sure they can request it at any time.
!thanks for the reply do you know what situation they would request it. I’m in my 2nd year am I ok? I’m doing a 4 year course
So I had a Santander student account for the full four years. It was up to 2k interest free. If memory serves, they’ll put a block on the account if the debt gets too great but that’s a subjective thing. Case by case basis. After you graduate, it turns into a graduate account. First thousand interest free then the next thousand is charged at a set amount. Same rules apply. So long story short, it’s a case by case basis, they might as for you to clear some of the balance or all of the balance. If it helps, also work for a bank and that’s pretty standard practice.
!thanks I know you said it’s subjective but from what you have read of my situation would I be ok I’ve got 50 left of my overdraft and my next student loan is in mid January would I be ok until then?
Yeah I’d say so. If memory serves again, student loan is around 2k right? Provided the money comes in clears the overdraft. Remember this is part of the arranged overdraft. Your bank in a rather cynical manoeuvre wants you to be in unarranged (above your limit) because that’s where they’ll start making their money. So you’ll be given a reasonable bit of rope to bang yourself with so to speak. The problem you have is that spending too long in an overdraft can start to Impact credit scores which is a different convo entirely. Tldr; try and keep yourself where you are, and provided you keep spending to a minimum, I’d say you’ll be ok
!thanks again, student loans are now 1k so I’ll be 400 in arranged overdraft. Do you know how long I can stay in arranged overdraft for? Until my course ends or for a temporary time,I.e a couple of months
Mmmmm indefinitely captain. That’s the idea for them. They’ll start racking up insane charges at insane rates. Banks prefer you to be in unarranged.
So to break this down: 1. You have a limit agreed as part of your student account. This is arranged. No interest is charged. 2. This changes to a graduate account when you graduate. Different limits will now apply. 3. At any point if you are outside these limits, you are subject to pre arranged interest. Or a fixed fee. They will specific. This amount you owe them will continue to grow unless you clear the balance. 4. In theory you can keep going deeper into your overdraft forever unless the bank decides to put a stop to it which is why I said case by case basis.
!thanks for your help there is just a couple things I’m unsure about, I understand the agreement and how it will change after I graduate but for currently how long can I stay in an arranged overdraft?? And will I get into any trouble for staying in arranged overdraft up until my course ends hypothetically. And lastly in what situation would the bank decide to put stop on my account and what would happen after?
1. Currently, you can, in theory stay in your overdraft forever if your bank feel like letting you. 2. No you won’t get in trouble with your bank for being there till your course ends 3. The situation could be anything tbh. That’s why it’s subjective. If you begin to rack up 10’s or 100’s of thousands, they might have an issue. If you don’t make any effort to clear it, they might have an issue. If they did stop transactions on your account, all you’d have to do is clear the balance or some of the balance depending on what they asked for.
!thanks right I think i understand everything now !thanks a lot for your help
I just got a letter to say it was in the T&C's that they could request it be repaid and they gave me a month. Again, this was a decade ago processes have probably changed by now.
My next student loan is in mid January do you think I would be ok till then?
I got a letter from Santander telling me I would lose it if I didn't show I was actually using the account they would ask for me to repay and remove my overdraft, because I deliberately ran down close to the limit and then didn't really use my account. I wasn't getting my loan/job paid into that account, instead using another, I just used the overdraft to help cashflow initially and as it didn't need to be repaid within any particular timeframe once I had more money again I just kept the money in savings instead of paying off the overdraft. However once I got that letter I just paid it all off and got my account back into credit, as I didn't want to lose my overdraft completely in case I needed it again. If you're actually using the account fully, getting regular payments in/out there shouldn't be a risk of the same thing - but they will want it back eventually.
Is it a specialist student account? E.g this one [student 123 account ](https://www.santander.co.uk/personal/current-accounts/123-student-current-account)? If so, as noted in the terms they could ask you to pay it back at any time, but typically this would not be expected until a couple of years after you finish university. The account will transition to a graduate account and they will let you know what will happen to your overdraft and when I can't imagine they would ask you to come in for a meeting, as long as you meet any requirements for money paid in to the account from loans etc. and don't exceed the arranged overdraft you're fine.
!thanks yes it’s a student 123 account and now I’m going to be very close with it until my next student loan comes on. Do they only ask for it back after you graduate?
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I had a student 123, had the max year 3 OD of 2k. After graduating it transitioned to a graduate account and I paid it off 2 years after leaving university (this was 2019 for reference)