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)
James | 14-Mar-2011 11:07 pm
I'm currently doing the LPC with CoL funded by the Natwest Professional Training Loan with a training contract lined up for when I finish with a niche litigation firm.
I was shocked when I heard that natwest withdrew their loan as I just couldn't see how someone like me, who didn't want to practice in a large corporate firm who offer funding, could afford to do the LPC. For this reason I think the news of HSBC offering a similar product has to be welcomed.
What I do wonder though, is why the LPC could not be incorporated as a 4th year of the LLB and therefore come under normal university funding?
I'm not one for conspiracy theories, but there seems to be a lot of people profiting from the law student gravy train who have no interest in making the legal profession more readily accessible to people from all backgrounds.
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Anthony | 24-Mar-2011 9:39 pm
As much as I lament the death of availability of funds for the GDL/LPC, be sensible. It isn't a charity, no one has an obligation to fund your training and you don't have a "right" to be a lawyer. It's unfortunate that this crisis has dried up credit but...
Why -was- there so much credit in the system to begin with? Blame the central banks and government.
Why are there so many 2:i's and even 1's? Blame government social engineering.
So really, people need to get a wake up call. If the profession is over-saturated with potential applicants, the proper course of action for said applicants - myself included - is to consider less oversubscribed areas of the market. And no, trainees don't earn "low" salaries. They earn a bloody fortune compared to most people. Such a horrid entitlement mentality...
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Anthony | 24-Mar-2011 9:42 pm
Also, Jen raises a good point. Lawyer's salaries are artificially high due to the regulatory entry barriers to become one (and the pseudo-laments against legal practitioners who don't go through all the SRA's hoops to become lawyers.) It isn't a "conspiracy". It is an open attempt to artificially inflate salaries. Doctors enjoy this kind of protection too, as do many professionals. They've been slick enough to wrap it under the pretence of maintaining "quality"... but why not let the consumer choose what level of quality they want?
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N | 30-May-2011 10:31 am
I called HSBC this morning, the advisor said they do not offer BPTC loans and that all that would be available is a personal loan to those that have had a salary being paid into a HSBC account in the last three months.
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Adrienne | 5-Jul-2011 4:20 pm
7.5% is hardly a life-line. You could get that rate anywhere on the high street.
HSBC are clearly not the barrister's bank it once was.
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Mantaray | 25-Jul-2011 11:39 am
Clearly the comments made regarding those students who take on these types of loans as 'stupid' are not made by aspiring lawyers.
How many recent graduates have £12,000 just sitting in the bank ready to dedicate to a qualifying year? How many have the means to work a full-time job along-side the BPTC? How many of us have well-off mummies and daddies willing to fork over such a huge sum?
If a law student is serious about becoming a barrister, they will undertake any costs necessary, just as they will dedicate every working hour to gaining the experience needed to join a top set.
A med student in the USA can have upto $125,000 worth of debt by the time they take up residency. Would you consider those students 'stupid' as well?
It is a means to an end and whether that end makes you £35,000 a year or £1,000,000 a year, a would-be barrister of any speciality will do whatever it takes.
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