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How to pay off student overdraft?

Hi, how do you actually pay off your student overdraft? Does the bank wait until your earning before they make you pay it back or before they add interest because a student account is interest free.
I'm concerned I won't be able to pay it back or they will add interest and the amount will just keep increasing.
I'm with natwest so I'm not sure about other banks. I could get an overdraft of up to £2000 during my final year of uni, during my first year post-graduation I kept this overdraft interest free, the next year it was £1000 interest free and in the third year my interest free overdraft went to £0, I could still have an overdraft but I have to pay fees (which are not much, makes less than £10 a month if I'm £1000 overdrawn)

so the bank will slowly reduce your overdraft with the expectation you pay it off until you start paying fees
Reply 2
Original post by doodle_333
I'm with natwest so I'm not sure about other banks. I could get an overdraft of up to £2000 during my final year of uni, during my first year post-graduation I kept this overdraft interest free, the next year it was £1000 interest free and in the third year my interest free overdraft went to £0, I could still have an overdraft but I have to pay fees (which are not much, makes less than £10 a month if I'm £1000 overdrawn)

so the bank will slowly reduce your overdraft with the expectation you pay it off until you start paying fees


Thanks, I'm with natwest too and have an overdraft of 2000, so is it when it turns into a graduate account this happens? I'm just confused as to how you pay it off if you don't have a job due to still being in education
Original post by Mango65
Thanks, I'm with natwest too and have an overdraft of 2000, so is it when it turns into a graduate account this happens? I'm just confused as to how you pay it off if you don't have a job due to still being in education


when your account switches to a graduate account you will be expected to pay it off so it's like

student account: 2000
grad account year 1: 2000
grad account year 2: 1000
grad account year 3: 0 (or you can arrange an overdraft and pay fees)

well plenty of people get jobs while still in education, but you'll have a year of being a graduate before your overdraft drops so you should be able to work off £1000 in that time
Reply 4
Original post by doodle_333
when your account switches to a graduate account you will be expected to pay it off so it's like

student account: 2000
grad account year 1: 2000
grad account year 2: 1000
grad account year 3: 0 (or you can arrange an overdraft and pay fees)

well plenty of people get jobs while still in education, but you'll have a year of being a graduate before your overdraft drops so you should be able to work off £1000 in that time


ah okay thanks thats great, I plan to do a 1yr masters so should have a job after the first grad account year :smile:
Original post by Mango65
ah okay thanks thats great, I plan to do a 1yr masters so should have a job after the first grad account year :smile:


tbh isn't the purpose of the overdraft not a 'loan', but an overdraft that you only should use temporarily (right?)
Reply 6
Original post by subject1
tbh isn't the purpose of the overdraft not a 'loan', but an overdraft that you only should use temporarily (right?)


I practically use it as a loan due to the lack of money I get through my course.
Keep in mind any money you put into your account pays off your overdraft first.. So say if you go 500 into your overdraft, your account will show as -500, then if you add £600 in, you'll be £100 positive if that makes sense?

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