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Students need financial advice

Published: Monday, 24 September 2007   Category: Public sector

University students should be given financial advice to ensure that banks do not take advantage of them, the National Union of Students (NUS) has claimed.

According to the NUS, a number of banks tie students to high interest credit cards and unfavourable rates of graduate overdraft interest by luring them in with gimmicks, such as free gifts.

Commenting on the need for financial knowledge, a spokesperson for the NUS said: "We'd say they're not getting enough advice."

She added: "Banks [are] offering gimmicks to bribe students to go there. The advice we give is that students shouldn’t look at the gimmicks and they should compare like with like, with interest rates in particular."

"There was the case with HSBC where they were intending to withdraw the interest-free period after students graduate. They do lull you in and then attack you quite viciously, especially with the commercial rate of debt. Students are an absolute prize market and you can see the way they market towards students."

Meanwhile, students have also been told that could save money on contents insurance by checking their parent's policies to see if they are covered, before going out and taking out their own cover.ADNFCR-1068-ID-18291459-ADNFCR

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