Halifax are taking my student overdraft away

I'm in my first year at uni and have a current account with Lloyds and a student account with Halifax which has a £1000 overdraft. All throughout my year at uni I've not needed the overdraft and was going to get the account closed but my parents told me to keep in open just in case. So I have not used the account at all this year. However, this week I found myself needing to use the overdraft until I get money in September so I transferred the £1000 overdraft into my Lloyds current account. Today I got a letter saying that I have a month to either 'credit my account or contact us'. I've put £700 back into the Halifax account so now I stand at -£300 does that count as crediting the account or do I need to make it out of the red?

I don't know what to do. I've thought about closing my Lloyds current account and transferring everything to Halifax, however I won't be getting any money paid in until September. I've got £3000 in my account which I could put into Halifax and then transfer out straight away - would that count as crediting the account?

I have enough to pay the overdraft but will end up with no money for two months which isn't ideal but it's acheivable. I was just planning on using the overdraft to fund the rest of my summer and then pay it off as soon as student finance arrives.

Any advice please?

Most banks t&cs for student accounts say you can only have one student overdraft with one bank at any time so ideally you need to make it out of the red and just solely have an overdraft then with lloyds.

I only have one overdraft account which is the Halifax student account. I don't know whether to put the £300 back in, cancel the account and go and apply for a Lloyds student account. The difference being that Lloyds is what I use as my bank account now so it's very active and gets money paid in regularly.

I only have one overdraft account which is the Halifax student account. I don't know whether to put the £300 back in, cancel the account and go and apply for a Lloyds student account. The difference being that Lloyds is what I use as my bank account now so it's very active and gets money paid in regularly.

Student accounts usually have t&cs that say you need to make regular deposits for it to continue being a student account. (e.g. my natwest requires i make £750 deposit each semester.) Maybe that caused a problem?

(Also, are you sure you requested to have the student overdraft? Because just having a student account often won't automatically give you the overdraft.)