HSBC Will Add 10% to Debts
James Charles wrote in the June 22, 2007 edition of the Times Online that HSBC has just announced that they will be charging students high overdraft interest payments. They say they will be the first to do away with free borrowing from those leaving university.
Traditionally, banks have given graduates a three year interest free period after graduation to give the students time to pay back their loan. But students having an account at HSBC will need to pay 10% on their overdraft starting in August. HSBC claims that this will prepare students for life after university and give them a taste of what life will be like as a young working professional.
HSBC will not reveal how many graduates will be affected but the National Union of Students say that HSBC is a popular lender among students and there will be close to 280,000 students left to face this high interest rate. (more…)