Lloyds TSB has announced that it would offer its student account holders, starting University this autumn, an increase to their interest-free overdraft while the Student Loans Company processes a backlog of applications for grants and loans.
To help affected first year students manage their money, Lloyds TSB student account holders who have an existing relationship with the bank, will be able to apply to extend their interest free planned overdraft up to £1,000.
Currently, Lloyds TSB student account holders can apply for a tiered interest-free overdraft of £500 in the first six months, up to £1,000 in months seven to nine and then up to a maximum of £1,500 by the end of the year. This move means that students will immediately be able to draw on the entitlement they would have been able to apply for in months seven to nine.
Catherine McGrath, Director of Current Accounts, Lloyds TSB: “We are very conscious that these delays are causing considerable concern to our affected student account holders and we are keen to be as flexible as possible to help freshers that could otherwise really struggle.
“We hope that by providing the opportunity to extend their overdraft, we will help to ease the worry of those who need funding the most.”
In addition to the extended overdraft, The Lloyds TSB Student Account offers other perks to help students stretch their money further including a free NUS Extra card, one year’s free YHA membership, substantial discounts when learning to drive with the AA, and 35 free music downloads from eMusic.