NatWest pulls important College of Law loan

News has emerged that NatWest has pulled the important College of Law loan for students hoping to join the legal profession.

The bank, part of the Royal Bank of Scotland Group, which is majority-owned by the taxpayer, and whose Chief Executive was recently awarded a bonus of just over ?2 million, will be withdrawing the scheme from April 2011.

The decision means that students hoping to study at the College of Law will have to find alternative sources of funding before they embark on the next stage of their career.

However, as prospective LPC students must pay a non-refundable deposit to secure their place at most course providers by mid-March, they have been left with little time to explore other options before making crucial decisions about their future.

Indeed, the NatWest website contains no information about the loan being scrapped.

I must confess an interest at this point. I will be embarking upon the Legal Practice Course in the Autumn, and was in discussions only last week with an Advisor at my local NatWest Branch only last weekend about the loan.

But when I finalised a Current Account application with her today, I was hit with the bombshell that I, like thousands of potential students, will be unable to apply for the important financial help.

On the above article, a “College of Law Spokesperson” said that “We can understand why prospective students are so unsettled by the withdrawal of the NatWest Professional Trainee Loan Scheme. We were extremely concerned when NatWest informed us of their decision, as we know how vital the issue of funding is to our students.

“At the College we?re working hard to support students who may be affected by the closure of the scheme – both through advice on applying before the deadline of 14 April 2011, and through guidance on alternative sources of funding. We?re also in discussions with other major banks to secure an alternative arrangement for our students, although details have not yet been finalised.

“College of Law students in need of advice can call us on 0800 289997 or e-mail admissions@lawcol.co.uk and we?ll do our best to help. Advice on alternative sources of funding is also available on our website: www.college-of-law.co.uk/funding”

Law is not an easy profession to enter – employment opportunities are limited and competition is fierce.

However, as in all professions, the market should be able to select their graduates based on ability to work, not ability to pay.

I can understand the pressure the banking sector is under, but if banks keep closing the door on students then ability to work will become increasingly less important as employers are forced to select from those able to pay.

A situation which will, more than likely, have a detrimental affect on the quality a profession that most people will need to rely on at some point in their lives.