Repaying Student Overdraft After Graduation? (Santander)

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SpicyTomato
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Hi,

I've read many threads like this - all be it, old ones. I can't find a thread that actually answers the question or has peoples experiences?

So, same old story; like the vast majority of students I have a student overdraft with Santander. First 1 and a half years, I managed to avoid using it but then my personal savings ran dry and I had no choice to use it. I work between term times and have usually been fine to top it up and not run too close to the end of my 2000£ limit. However, I now have and I haven't been able to return to work as they simply don't have space for me this summer. So far, no luck gaining employment elsewhere with such short time at home before returning to uni (however the hunt will continue).

My concern now being that I may not get the opportunity to pay back the overdraft previous to finishing my studies.

How does Santander typically handle this situation? As I feel it's obvious that if students have run into their overdrafts, it's because they have no money and can't afford to place £1500/£2000 straight back into the account to clear it - as much as I would love too.

At the end of my studies, it may be possible to pay a chunk off (say £500?) in one go. But not the full £2000. Is there anyway to extend the overdraft 0% or what sort of charges would I be looking at incurring?

I have read through their terms and conditions, but can't find anything useful or understandable about what happens AFTER graduations. Just some nicely advertised perks of having the account and overdraft with them.

Any information from previous santander overdraft account holders would be useful?

Regards
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Reality Check
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(Original post by SpicyTomato)
Hi,

I've read many threads like this - all be it, old ones. I can't find a thread that actually answers the question or has peoples experiences?

So, same old story; like the vast majority of students I have a student overdraft with Santander. First 1 and a half years, I managed to avoid using it but then my personal savings ran dry and I had no choice to use it. I work between term times and have usually been fine to top it up and not run too close to the end of my 2000£ limit. However, I now have and I haven't been able to return to work as they simply don't have space for me this summer. So far, no luck gaining employment elsewhere with such short time at home before returning to uni (however the hunt will continue).

My concern now being that I may not get the opportunity to pay back the overdraft previous to finishing my studies.

How does Santander typically handle this situation? As I feel it's obvious that if students have run into their overdrafts, it's because they have no money and can't afford to place £1500/£2000 straight back into the account to clear it - as much as I would love too.

At the end of my studies, it may be possible to pay a chunk off (say £500?) in one go. But not the full £2000. Is there anyway to extend the overdraft 0% or what sort of charges would I be looking at incurring?

I have read through their terms and conditions, but can't find anything useful or understandable about what happens AFTER graduations. Just some nicely advertised perks of having the account and overdraft with them.

Any information from previous santander overdraft account holders would be useful?

Regards
After you graduate, your student account will be changed to a graduate account. This usually continues the interest-free overdraft for a period of time, but starts to taper it downwards, to allow you to pay if off. The limit is usually lowered in sensible chunks over two or three years, and interest starts to become payable on at least part of the overdrawn balance.

This allows you to pay it off gradually and not have to either find a large lump sum at the end of your studies, or suddenly start incurring large fees and charges.
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s1s9s9s5
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Not sure if it's the same with yours but with Barclays the student account remains with the interest free overdraft etc until around a year after the studies finished then it transitions into the graduate account
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SpicyTomato
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(Original post by Reality Check)
After you graduate, your student account will be changed to a graduate account. This usually continues the interest-free overdraft for a period of time, but starts to taper it downwards, to allow you to pay if off. The limit is usually lowered in sensible chunks over two or three years, and interest starts to become payable on at least part of the overdrawn balance.

This allows you to pay it off gradually and not have to either find a large lump sum at the end of your studies, or suddenly start incurring large fees and charges.
(Original post by s1s9s9s5)
Not sure if it's the same with yours but with Barclays the student account remains with the interest free overdraft etc until around a year after the studies finished then it transitions into the graduate account
Thanks both for the reply.

I have contacted Santander just now also, and what Reality Check has said is right (thanks!). So I'll just post what they told me, incase anyone comes here looking for similar answers.

Once I graduate, my account will automatically turn to a graduate account; which currently offers a 2 year 0% and fee-free overdraft.

So no immediate worry regarding them wanting an instant repayment.

Thanks again for the replies guys
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Reality Check
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(Original post by SpicyTomato)
Thanks both for the reply.

I have contacted Santander just now also, and what Reality Check has said is right (thanks!). So I'll just post what they told me, incase anyone comes here looking for similar answers.

Once I graduate, my account will automatically turn to a graduate account; which currently offers a 2 year 0% and fee-free overdraft.

So no immediate worry regarding them wanting an instant repayment.

Thanks again for the replies guys
You're welcome
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Cartin96
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In terms of this above thread I just wanted to add something which I have experienced. When I graduated last summer I rang Santander to tell them. The man I spoke to advised me that I had interest free for 3 years. In my naivety I thought I just had 3 years to pay this off. I usually bank with Halifax and so was paying off £40 here and there between getting a new job, beginning to rent/ buy furniture etc. In July this year my overdraft was stripped from my account leaving me with a £1500 unauthorised overdraft. I am trying to sort this out but is proving extremely difficult with trying to get an appt/ ringing santanders very unhelpful and intimidating collections department!! I would be very careful and make sure you are putting at least £500 in the account each month as they can't take it all away from you if you don't adhere! Hope no one else has to experience this or santanders collection team!!
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Arls
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Hi, so does this mean you have 2 years to repay your overdraft? Thank you
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SpicyTomato
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(Original post by Arls)
Hi, so does this mean you have 2 years to repay your overdraft? Thank you
Hey,

Yes, so in July/august (I graduated this year), my student account converted automatically to a graduate account which offers a 2 year 0% overdraft, allowing me that time to pay it back.
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piggy_mkx
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what was the outcome of this?
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piggy_mkx
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what was ur outcome of this? currently in the same position
(Original post by Cartin96)
In terms of this above thread I just wanted to add something which I have experienced. When I graduated last summer I rang Santander to tell them. The man I spoke to advised me that I had interest free for 3 years. In my naivety I thought I just had 3 years to pay this off. I usually bank with Halifax and so was paying off £40 here and there between getting a new job, beginning to rent/ buy furniture etc. In July this year my overdraft was stripped from my account leaving me with a £1500 unauthorised overdraft. I am trying to sort this out but is proving extremely difficult with trying to get an appt/ ringing santanders very unhelpful and intimidating collections department!! I would be very careful and make sure you are putting at least £500 in the account each month as they can't take it all away from you if you don't adhere! Hope no one else has to experience this or santanders collection team!!
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Sophiejade10
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How long did it take them after you graduated and not putting £500 a month to take your overdraft off you?
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rebecca-melody
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Thanks for posting - I'm new to the Santander Student Account and to the concept of overdrafts in general. Due to being wrongly paid this month, I might need to dig into my overdraft before the new term comes. Am I right in my understanding that there are no catches to the overdraft being fee-free with no interest? I don't plan to be under for longer than a couple months, so I just want to know if I can go under without worrying!
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