What is a student overdraft?

An arranged overdraft is extra money you can borrow from us to help you while you study. We agree an amount of credit on your current account that you pay back later.

Arranged overdrafts are designed for short-term borrowing, and you only pay back the amount you use. There are no interest or other charges with our student overdraft.

When you apply for our student bank account, FlexStudent, you can ask for an arranged overdraft and set a limit. You could also add one later and change the limit at any time.

You will need to pay back the amount you borrow, either after you graduate or while at university.

How does a student overdraft work?

  • You can ask for an arranged overdraft when you apply for a FlexStudent or after you open the account.
  • You set the arranged overdraft limit. This is the maximum you can borrow.
  • The maximum you can ask for depends on things like the length of your course and what year of study you are in.
  • You must stay within your overdraft limit. If you try to go beyond it, you will not be able to make payments or withdraw cash.
  • To help you pay it back, we will gradually reduce your limit after you graduate.

Benefits of our student overdraft

  • It is interest-free
    Our interest-free student arranged overdraft has no fees or charges.
  • It has a generous arranged overdraft limit
    Apply for up to £1,000 arranged overdraft in your first year, up to £2,000 in year 2 and up to £3,000 in year 3 and onwards.
  • You can pay back your overdraft gradually
    After graduating, your arranged overdraft limit will gradually decrease over 2 or 3 years.
  • You control your student overdraft
    We will only increase the overdraft limit if you ask us to.
  • You can manage your student overdraft on your phone
    We will text you updates about your arranged overdraft. You can also track it online with our banking app or internet bank.

Student overdrafts in a nutshell

  1. Open your student account

    Choose whether you want an arranged overdraft and how much you want to be able to borrow.

  2. Borrow money while at university

    Head off to university and apply for an overdraft limit each year. You can also start repaying it.

  3. Repay and reduce your borrowing

    If you have not repaid your overdraft by the time you graduate, repay it gradually after graduation.

To keep your arranged overdraft, you need to:

  • pay at least £500 in to your account each term or have paid in at least £1,500 in 2 or more payments over the past year
  • maintain a good credit record
  • stay within your arranged overdraft limit.

If you don't do these things, we may reduce or remove your arranged overdraft.

Frequently asked questions

Discover how our arranged overdraft works if you open a Nationwide student bank account.

Ready to apply?

You can apply for an arranged overdraft in your FlexStudent application.

If you already have one of our student or graduate accounts, you can apply for an overdraft online.

Help with your student arranged overdraft

Change your overdraft limit

To increase or decrease your arranged overdraft limit, apply online or over the phone.

We will check it is affordable, what your maximum arranged overdraft limit is and when that limit is due to change.

As a form of borrowing, an arranged overdraft will be on your credit file. Increasing your arranged overdraft limit frequently can lower your credit score.

Struggling to repay after graduation

Call us to talk through your options or read our support articles.

Call us

Monday to Friday, 8am to 6pm.
Saturday, 9am to 12pm.

Support with managing your finances