All You Need To Know About The Postgraduate Masters Degree Loans

All You Need To Know About The Postgraduate Masters Degree Loans

In the summer time of 2016, the federal government launched a postgraduate loan to assist bridge the talents hole we at present face within the UK. The £10,906 Postgraduate loan is out there for UK and EU students, topic to phrases and circumstances. Here’s a listing of the most recent FAQs that can assist you discover out precisely what it’s worthwhile to know.

Are postgraduate loans only for full-time programs?

No, whether or not you’re trying to apply for a full-time or part-time course, the federal government has put the postgraduate loan choice in place to assist students all through additional schooling.

Will I nonetheless be eligible for a postgraduate loan if I’ve already had a student loan for an undergraduate diploma?

Yes, the postgraduate loan was launched to assist students additional their research from undergraduate-level to Masters.

What can the loan be used for?

The loan is obtainable by the federal government as a contribution to fund a Masters programme. However, in contrast to a daily student loan, the funds are made right into a student’s bank account, a bit like a month-to-month revenue. A student chooses how this cash is spent, whether or not that’s on to the programme, or put in the direction of lodging and residing prices.

Is the loan sufficient to cowl a Masters?

The postgraduate loan ought to be enough to fund your Masters programme. However, we will’t assure whether or not the loan can be sufficient to additionally fund residing prices and lodging. You could have the accountability of budgeting your cash accordingly and prioritising the place it ought to be spent.

Can I borrow lower than £10,906?

Yes, the £10,906 postgraduate loan isn’t a set loan. It’s simply the utmost quantity you may borrow. If you require lower than that quantity then it is possible for you to to take action.

Can I alter the quantity I’ve borrowed if wanted?

Yes, from the primary day you began your educational 12 months, you will have as much as 9 months to have the ability to change the quantity you will have determined to borrow. This will should be performed through a loan request type as this can’t be modified on-line.

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Is the eligibility for a postgraduate loan based mostly on revenue or financial savings?

No, the eligibility for postgraduate loans will not be based mostly round your revenue or financial savings. Unlike a bank loan, there doesn’t should be proof that it is possible for you to to pay it again. The postgraduate loan is there to assist students additional their careers by taking on further {qualifications}.

Is there a separate loan for upkeep?

No, the postgraduate loan is there to fund the prices of the programme and to handle residing prices and lodging if needed. If you’re counting on the postgraduate loan for upkeep, you’ll need to price range accordingly.

Can I nonetheless apply for the postgraduate loan if I don’t have a very good credit rating?

Yes, the eligibility for the loan isn’t based mostly round credit scores. The solely credit interference you can encounter is in the event you had beforehand taken out a student loan for an undergraduate diploma and had points with loan repayments. In this case you would want to talk with Student Finance England to attempt to get the issue resolved.

Will the postgraduate loan have an effect on any advantages I obtain?

Yes, a postgraduate loan may probably have an effect on any welfare assist you obtain as in contrast to undergraduate loans, the cash is paid instantly into your bank account as a substitute of a college. If you’re receiving advantages and wish to apply for a postgraduate loan, the best choice can be to debate this with Student Finance England or your advantages supplier.

Can I nonetheless obtain Disabled Students’ Allowance (DSA) if I’ve a postgraduate loan?

Yes, the DSA is completely different to some other monetary assist you can be receiving and won’t in any manner be affected by a postgraduate loan.

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Does an age restrict apply?

Yes, the postgraduate loan is obtainable to folks as much as the age of 60. If you’re already 60 years previous and want to apply for a postgraduate loan, you will be eligible offering you’ll stay the identical age on the beginning date of your first educational 12 months.

I have already got a postgraduate qualification, can I nonetheless apply for a loan to do a Masters?

You will solely be entitled to a postgraduate loan if the qualification you maintain is under Masters degree equivalent to a postgraduate certificates or diploma. The postgraduate loan is simply used for full Masters programmes to not progress an current postgraduate qualification.

Can students apply for the postgraduate loan in the event that they’re from Scotland, Wales or Northern Ireland?

The authorities launched the postgraduate loan for English students. However, if a student is from Scotland, Wales or Northern Ireland and may show they’re resident in England, they need to be entitled to the postgraduate loan.

Are EU students entitled to the postgraduate loan?

Yes, offering the student can show that they’ve been residing within the EU, EEA or Switzerland for a minimum of three years previous to the start of the course, they need to be eligible. However, the loan is used to review a Masters at a college in England. This can both be on-campus or distance studying choices.

Will Brexit have an effect on EU eligibility?

As of but, no. EU students will nonetheless be eligible for student loans till the UK has formally left the UK which won’t be anticipated to occur till 2019 at its earliest. In the meantime, postgraduate loans will nonetheless be out there to EU students for the 2018/19 educational 12 months.

Are worldwide students outdoors of the EU eligible for a postgraduate loan?

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A postgraduate loan will not be out there to worldwide students outdoors of the EU. You will solely be eligible in the event you’re a UK or EU citizen.

How are the postgraduate loans paid?

Your postgraduate loan shall be divided into instalments throughout the complete size of your course and paid right into a UK bank account. The variety of instalments you obtain relies on the quantity you determine to take out and the size of your course.

What occurs if I don’t full my Masters?

Payments are topic to affirmation of attendance which is supplied by your college. The loan funds will stop in the event you exit the programme early. However, you’ll nonetheless be liable to repay the quantity you will have borrowed.

What is the present rate of interest on postgraduate loans?

The present rate of interest is 6.1%. This is predicated on the Retail Price Index (RPI) of 1.6% plus 3%.

Will the rate of interest change?

The rate of interest on postgraduate loans will change if the RPI determine is up to date.

How a lot do it’s worthwhile to earn to start out paying again the postgraduate loan?

You will should be incomes £21,000+ each year to start out making the loan repayments. The authorities has determined to boost the compensation threshold for undergraduate student loans to £25,000+, nevertheless, this won’t be making use of to postgraduate programmes.

The data contained on this weblog is supplied represents the info as understood on the time of publication in June 2018. Please bear in mind that future adjustments to this data as attainable, and that accountability is with the person to verify essentially the most up to date data earlier than committing to review. For essentially the most up-to-date data, please go to: gov.uk/masters-loan