Bank of Ireland Package to Ease Tightening Student Cashflows

"A student's relationship with a bank is no longer a 'nice-to-have' or somewhere to simply put money.  Students have to juggle increasingly complex finances particularly throughout their adult education with which banks can offer real assistance.  This has never been more true than today when student lifestyles are changing radically, largely because of greater financial pressure."  That was according to Patrick Farrell, Marketing Manager, Customer Recruitment, at the launch today (30thJuly 2003) of the Bank of Ireland Student package for the 2003 / 2004 academic year.

The Bank of Ireland package offers a range of interest free and flexible products to make cash accessible when and where the student needs it.

"The entire student package of products is tailored to tackle cash flow issues while making concessions for the fact that the student does not have the income to support large interest payments.  With us, cash-flow problems can be eased without necessarily getting into debt,"he said. 

Data* shows that the student cost of living both in Dublin and outside - is increasing by as much as 30 per cent per annum.  At the last estimate, it stood at EUR683 per month or EUR6,147 for the nine-month academic year just to get by as an Irish student.  However the basic grant, under the most recently announced government scheme, is just EUR3,264.  The remaining 47% needs to be raised by the student.  

Recent government decisions will also further impact on student finances.  The stamp duty on credit cards and laser cards holds a potential cost of EUR60 per annum.  The student summer job scheme has been abolished, wiping out a potential EUR600 income and the Back to Education support for mature students has been reduced from 12 to 9 months.

To manage the shortfall in finances, 57% of students are working part-time on average 20 hours a week on top of their study and lectures.  With the increase in rent and the shortage of quality accommodation, there is also a growing trend for students to live at home and commute long distances or stay in Ireland throughout the summer in order to retain their rented accommodation for the following year.

"Our goal is to play our part in meeting students' needs today, together with the student's traditional supports of parents, part-time work and grants.  For example, it takes an average of four months to receive the basic grant.  Imagine the cash flow issue this introduces on top of everything else.  One of our products is designed to tackle just that. Just demonstrate eligibility for the grant and we'll give the student the money now, interest-free for nine months.  The same idea applies to any tax rebates that are due having worked abroad for the summer.  Just let us know and we'll give you an advance until the money finally arrives. 

We are working on the principle that many of today's students will become valuable customers in the future. As our investment in securing that future business, we are supporting and assisting them now,"concluded Farrell.

(ENDS)

*           Union of Students in Ireland data

Note:             Product description attached

30thJuly 2003

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