Halifax extends interest-free overdraft for students

18 August 2006
High street bank Halifax has stepped up its pursuit for new business from university-bound students as it substantially increased the interest-free portion of its overdraft offerings.

With A-Level students receiving their results yesterday, many will now know where and when they will be heading off to higher education and to coincide with this, Halifax has said it will up interest-free limits for all years to £2,750.

Previously, the bank offered staggered limits on the interest-free portion of its student overdrafts, whereby first-year undergraduates would be allowed interest-free debts of up to £1,750, which rose to £1,900 in the second year and £2,100 in the third, fourth and fifth years of study.

Average student debts are rising all the time, according to recent findings from a number of research studies, with the average cost of a degree education now believed to be in the region of £33,500.

Although many students' parents will foot some of the bill, full-time undergraduates generally need as many low-cost ways as possible to fund their lifestyles during term-time.

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