Financial support available and repayment

Financial support available and repayment

You can find out about:

 How much is available

Students can apply for a Postgraduate Loan of up to £10,000 to help with course and living costs.  This contribution is the total amount available for the duration of their course (one to four years).

If a student is studying over:

  • one academic year, then they can get a loan of up to £10,000
  • two academic years or more, then they can get up to £5,000 in their first year, with the remainder available and paid in their second year.

The Postgraduate Loan is not income assessed

 Applying

Students can apply online or download an application form from www.gov.uk/postgraduateloan.   

Only one application needs to be completed to apply for the Postgraduate Loan, even if the student is studying for two academic years or more.  This is different to undergraduate support where the student needs to apply each academic year.

Applications for the Postgraduate Loan should be made within nine months of the first day of the:

  •          academic year where the course is a one year course
  •          second academic year where the course is two years or more

Students who don’t apply until the second year of their course, will still be entitled to receive up to £10,000.

How it’s paid

Payment of the Postgraduate Loan will be made in the first and second academic year only. Students who are studying part-time over three or four academic years, will therefore receive full payment of the Postgraduate Loan in their first two years.

Payment will be made in three instalments of 33%, 33% and 34% in each of the first and second academic year (if applicable) once the university or college have confirmed attendance. 

As with undergraduate support, students will need to provide both valid UK bank details and a National Insurance Number (NINO) in their own name.  

Overpayments

Payment of the Postgraduate Loan is made to the student for each term of study.  If a student withdraws from their course within a term, they will not be reassessed based on the number of days in attendance for that term.  Instead, they will be made ineligible for any future payments and these will be cancelled.

The Postgraduate Loan will only be considered overpaid when:

  •          we receive confirmation that the student withdrew before the next payment date which they then received;
  •          the student is subsequently reassessed and deemed ineligible for the Postgraduate Loan.

A student will need to make an arrangement to repay these loan overpayments as soon as possible.

Interest rate

Interest will be applied to the total Postgraduate Loan balance from the day the first payment is made to the student until the loan is repaid or written off.  Interest will be charged at a rate of RPI +3%.  Unlike undergraduate loans, this rate will apply while the student is studying and in repayment.

 Repaying the Postgraduate Loan

The Postgraduate Loan balance is repayable and will come into repayment from 6 April 2019.

The amount a student will repay is 6% of their earnings above the repayment threshold of:

  •          £1,750 monthly or
  •          £404 weekly

If they earn below this, then no repayments will be required.  The monthly and weekly figures shown are the equivalent of an annual salary of £21,000 before tax.

Repayments made for the Postgraduate Loan balance will be in addition to any undergraduate loans in repayment.

For example, if a student has a Postgraduate Loan and also an undergraduate loan which they took out after 1998, a total of 15% will be deducted from their annual income once they’re earning over the thresholds for these loans.  This is based on a deduction of 9% for their undergraduate loan and an additional deduction of 6% for the Postgraduate Loan.

 Disabled Students’ Allowances (DSA)

Postgraduate students can apply for a single allowance DSA payment of up to £10,362 to support them in their course.  They don’t need to apply for the Postgraduate Loan to receive this support.  However, in all instances, when DSA support is required for a Master’s course, students should complete a DSA1 full form in all circumstances

 

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