Sold Term Loan after Student Loan refused

Malone85

Hello,

I would really like some help with this.

In 2009 I took out a loan for 17500 for a masters and laptop etc...

I went to BOI and was told that I was not eligible for a student loan as they don't offer student loans to that amount.

Instead I was offered a term loan to cover the amount on 15.8% my payments are just under €500 per month and the total loan cost about €23,800

Here's my problem, I called today to say I'll be paying a chunk off the principal and I wanted to see about restructuring, after asking about my graduation date the loan manager from my branch said we should look at applying for a "graduate" loan which has a 9% rate.

Should the bank not have offered a graduate loan in the first place as I had finished my undergraduate degree?

Am I in a position to make a complaint to the financial services ombudsman because they did NOT offer me a graduate loan originally and thus should they remove the difference that I have already paid off?

I feel like they've really screwed me, after two years of repayments I can't belive I'm only uncovering this now. I looked into a number of options for the loan and was refused the student loan and told the Term loan was the only way, surely they should have offered the graduate loan???

I really appreciate any help, I want that 3k back/knocked off the remainder...

I feel like I want to falling down the place.

dotsman

Don't see how the Financial Ombudsman would really be able to do anything. They offered you a loan at 15.8%, you accepted and that's what you got. Just because you might have been able to get it for cheaper does not necessarily mean they have done anything wrong.

Think of it another way. If you go into a shop and buy 6 bags of crisps - You can't really say that the shop screwed you if you later found out the crisps are also available in a much cheaper "6-pack" and that the person at the till should have told you. Don't get me wrong, it would have been nice if they did, but they haven't officially screwed you.

With regards the "might" above. Although this loan may be suitable now, it doesn't mean that it was at the time. Firstly, you can either only be a graduate or a student. Once a graduate your account automatically upgrades (downgrades) to a regular account after 18 months. So, by keeping your account as a "student" they were looking after you best interests there. Secondly, although the current remaining balance may qualify for a "graduate" loan, the original 17,500 might have exceeded the maximum amount (similar to how it exceeded the "student" loan maximum).

To be honest, when you are speaking to the rep next, you can ask him/her as to why. If it turns out that you would have been eligible at the time, you might have a case for some sympathy from them and could even argue that whoever sold you the loan was not looking after you best interest as they are obliged to do.

testicle

Jaysus, you'd have gotten a better rate than 15.8% on a credit card back then!

chris85

Grad loans are for people just finished college and working, hence the lower rate as they are working. You had a high interest which is assoiciated with the fact you were a student and this has associated risks for the banks. Basically just because you are a degree graduate doesnt mean you are a graduate for loans as you are continuing studies. I really dont see the problem here.