Lift for trainee barristers as HSBC reinstates BPTC loan
Cash-strapped would-be barristers have been offered a vital lifeline following HSBC’s decision to relaunch its BPTC loan.
The loan, which was rolled out following a recommendation in Lord Neuberger’s high-profile report on widening access to the bar, was suspended in November 2010 while the banking giant conducted a review of the product.
Aspiring lawyers have been finding it increasingly difficult to borrow money to fund postgraduate legal courses, a problem that was exacerbated by NatWest’s recent decision to withdraw its Professional Trainee Loan Scheme from April.
An HSBC statement said: “HSBC is committed to supporting bar students and the wider legal community. Following a review we’ve taken the decision to continue to offer specialist commercial and retail services to the legal community via our barrister unit and we’ll shortly announce full details of the 2011 Bar Loans Scheme.”
The previous Bar Loans Scheme offered a low interest rate of 1 per cent over HSBC’s base rate and a three-year repayment holiday.
A Bar Council spokesperson welcomed the decision and called for other providers to introduce similar schemes.
BPP Law School last week launched flexible payment methods for its LPC and GDL fees to enable full-time students to spread the payments over four instalments.
The LPC giant, which like most of its rivals is planning to hike its LPC fees later this year, is also in discussions with other lenders with a view to rolling out an alternative to NatWest’s loan scheme.
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Readers' comments (26)
Martin Glick | 7-Mar-2011 1:37 pm
Dissapointing HSBC could not have announced this in time for the National Pupillage Fair which took place yesterday in Lincoln's Inn.
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Maverick | 7-Mar-2011 7:54 pm
A foolish decision.
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Big Dave | 8-Mar-2011 10:51 am
Undergrad debt is enough of a millstone around your neck. Additional postgrad debt is plain stupid.
If you can't get funding for your postgrad course, whatever it is, do something else.
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Anonymous | 8-Mar-2011 12:02 pm
Big Dave - considering the top barristers can earn sums in excess of £1million each year, I don't think taking on £30,000 worth of debt is 'plain stupid' at all. You have to invest in yourself and your future earnings potential. If you don't have the ambition to take that risk then you're not cut out for the job anyway.
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Anonymous | 8-Mar-2011 1:54 pm
To the above.
Yes it is plain stupid.
The chances of earning that amount of money are so remote you may as well play the lottery.
Taking on debt in the hope that you might get a lucky break is not investing in your future it is gambling.
Pure and simple.
I'm guessing you probably sell legal education.
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Lamb | 8-Mar-2011 2:19 pm
Anonymous- top barristers may earn lots of money and yes you do have to invest in yourself but considering there are over 4000 people going for less than 500 pupillages, there are going to be a lot of people not earning lots of money and stuck with high debts!
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'Stupid' post grad | 8-Mar-2011 2:28 pm
The same applies to those wishing to become solicitors.
Unless you are lucky enough to have funding as part of a training contract, you must take on a substantial amount of debt if you wish to become a solicitor. In the absence of Bank of Mum and Dad and/or trust fund assistance, you must take on considerable debt at University, take on considerable debt at the College of Law and then earn next to nothing for 2 years whilst undertaking your training contract, which for most, produces considerable debt.
This is about the long game and a challenging and rewarding career, both intellectually and financially.
Having said all of this, if I had to start by taking on £27k of debt just for University tuition fees, I would probably just become a plumber, which apparently pays very well.
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Anonymous | 8-Mar-2011 3:29 pm
Sob Sob..
Take a gap year, work as a paralegal or whatever and pay for the BPTC/LPC. The upside is that you get some practical legal experience that you can put on your CV too.
If you are not willing to take risks then you should not even leave the house
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Jen | 8-Mar-2011 4:30 pm
This is great news. Access to the bar needs to be increased, and this will go a long way to helping students who do have the talent but don't have the money.
Big Dave - Why should students have to do something else instead of investing in themselves now to reap the rewards later? Taking on the debt is no more of a 'millstone round your neck' than our undergraduate debt is.
Regarding the statistics about students who don't get pupillage but have the debt - that's their choice. But what about the students who have secured pupillage, but can't afford to pay the bar fees now? Finance should be no barrier to the profession, the same way it should be no barrier to university.
Anonymous - taking a year out to pay for the BPTC working as a paralegal isn't as simple as it sounds. I worked as a paralegal last summer and only earned £5.80/hr. Taking out rent, food and other living costs, it's going to take me several years to save up £15,000 to cover my bar school fees. Moreover, I was one of the lucky ones who could actually find a paid paralegalling position - several of my friends are currently working unpaid for that practical legal experience to put on their CVs.
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IHateBPP | 8-Mar-2011 4:53 pm
Can anybody confirm if there is any logical reason (beyong greed) why the bar course costs considerably more than the, highly overpriced in most cases, LPC?
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