What Happens To Student Accounts After Graduation?
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It is my last year in college and I’ve begun to wonder if I can still use my student checking account or student credit card when I’m no longer a student. After graduation, I’ll be just another adult, right? I’m sure many other students and graduates-to-be are pondering the same question.
As expected, every financial institution has its own terms and conditions regarding the specific accounts that are opened. So, it is difficult to provide a universal answer for what happens to student accounts after graduation. But, many of them follow similar policies.
Why should this be a concern to college students:
Student Checking Accounts
Many freshmen sign up for student checking accounts to get their foot into the world of banking. Student checking accounts offer free checking with no minimum balance required, no monthly maintenance fees, ATM fees, online banking and debit/check cards. After graduation, student checking accounts usually become regular checking accounts with your bank. These regular accounts charge monthly maintenance fees unless certain requirements are met, which waive these fees. You don’t want to be slapped with a charge that you could have otherwise avoided or expected.
- What happens after graduation:
Many banks will allow you to hold your student check account for 5 years since opening it (1 year after graduation). Afterwards, the student accounts usually become regular checking accounts and those terms and conditions apply. You become responsible for the fees and whatnot. Most banks require a monthly direct deposit or minimum monthly balance to waive these fees. So, you should look around to see if other checking accounts fits you better.
Student Credit Cards
Student credits usually start off with low credit limits and a higher APR than regular versions of the credit card. Switching from a student card to a regular card would increase the maximum credit line and lower the interest rate (provided that you have a good repayment track record).
- What happens after graduation:
Nothing really happens. The credit line remains accessible as long as the account isn’t closed. These cards are usually a young adults first trace of credit history so they shouldn’t be closed. What a graduate SHOULD do is to call in to convert the card to a regular card.
The transition to an regular accounts should be simple and easy. The concern is to avoid checking account fees and to upgrade from student credit cards. Building a good credit history would mean eligibility to credit cards for people with good credit score.
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9 Comments on this post
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Maayan Gordon said:
This article was very informative and helpful, especially for me, a student soon to be living on her own in college.
September 25th, 2008 at 9:50 am -
Ankit said:
the student account is automatically transfered to the adult account after graduation but it gives a one yr extended in case of dropping.
September 25th, 2008 at 10:07 am -
freelancer for hire said:
I don’t know if you can find the same offers in every state or country, but many banks now offer a checking account with no monthly fee. You also do not have to keep a minimum balance each month. Look for a bank that is well established in other areas but is just opening a branch near you. They often offer really good terms, so they can build a customer base quickly. I enjoyed your article. Thank you.
Kelli
September 25th, 2008 at 12:42 pm -
yanjiaren said:
This is a very informative article and something I will keep in my ind as I am trying to save some pennies for my Son to go into Higher Education as he wants to Study Law.
September 25th, 2008 at 12:55 pm -
chato said:
I think you will also stop getting tons of CC application too, and it might be a good idea to consolidate any outstanding balances… What to you think, will that help or just make things worse. That is to consolidated and get rid of higher cost CC’s?
September 25th, 2008 at 1:21 pm -
Rogue said:
When I was in college, I have had this student account. I was told that indeed, it would turn regular after graduation.. the qiestion and the vague part, the bank actually doen’t know unless you tell them you graduate!
Having regular account can have lesser limits but it is costly as well.
September 25th, 2008 at 1:33 pm -
Sofhal Jamil said:
What Happens To Student Accounts After Graduation? Wow, that’s a simple questions, my sister think. According to her, after she’s graduating for her study, she teach accounting on her campus as an assistant to her lecture, and has working as account on public accountant office.
September 25th, 2008 at 2:29 pm
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