Bank Changes - Might they affect you?

In 2007 Student BMA News reported that Barclays had withdrawn its professional studies loan – a loan students have used to help fund their way through medical school. Those who already had the loan could continue it but they could no longer extend it.

Manil Malanawa of the BMA Medical Student Committee commented, ‘It’s not an ideal source of funding as it’s a commercial loan, but if people needed it at least it was there for them.’

At the time three banks were still offering this type of loan ie HSBC (Professional Studies Loan), Lloyds TSB (Further Education Loan) and Natwest (Professional Trainee loan).

See our information on borrowing money for the pros and cons (see 'related links') Essentially, avoid this kind of loan if you can, because it will mean more debt and a higher interest rate than your student loan – but if you don’t have any alternative, for instance because you’re a second degree student, make sure you know what is involved (see 'related links')

HSBC Graduate Overdraft Interest Shock

At the same time MSN Money UK advised  HSBC would be charging 9.9% interest on all graduate overdrafts – ie ending the previous two year interest free period.

If you’re an HSBC customer you might want to move to a bank which still offers an interest free period.

The top three graduate overdrafts according to thisismoney.co.uk in July 2007, were Royal Bank of Scotland, Abbey and Lloyds TSB. Check with this.money.co.uk for the latest figures.