Students should remember that overdrafts are to be taken seriously and not treated as long-term loans
or extra disposable income, a banking industry body has said.
The advice was given by the British Bankers’ Association (BBA), which said that students need to learn to be “committed” to their finances.
According to the BBA, overdrafts should be considered as borrowed money “isn’t intended for just going out”.
Spokesman Brian Capon advised students: “Bear in mind it’s a loan, not a grant – long gone are the days when you got an automatic grant to pay for your studies.”
He added that studying at university in the modern climate requires a big financial commitment, both during and after the study term.
Mr Capon told students they should begin saving as much as possible, to help with both course materials and life after university.
In related news, debt advisory service Credit Action recently stated that student loans
do not cause debt problems for graduates, but do “contribute to a culture of borrowing”.
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