12 Myths About Masters Degree Loans

Applications for postgraduate loans for Masters degrees are due to launch later on this summer.

But these loans are a little different to the undergraduate student finance you may be used to. Avoid mistakes and misunderstandings with this spot of mythbusting.

#1 "Postgraduate loans are the same across the UK"

Actually, there are four postgrad loan systems: one for students from each part of the UK.

They all do pretty much the same thing (let you get a student loan, for a postgrad course) but there are some pretty important differences when it comes to value, repayments and even eligible courses. So check our guides and make sure you don't get the loans mixed up.

#2 "The loans are the same every year"

I'll spare you the history lesson, but postgrad loans have actually changed loads since they were first introduced in 2016.

Sometimes the maximum amount changes (as it has for English loans every year). Sometimes the whole system changes, as it did in Wales last year. Sometimes the changes are smaller, as Scotland and Northern Ireland have kept the value of their loans the same, but made them available to more and more students on different types of course.

We can help you stay updated about all the different loan systems (and more).

#3 "You can only get a loan for a Masters degree"

In fact, Scotland and Northern Ireland provide loans for Postgraduate Certificates and Diplomas (shorter courses at Masters level) and England and Wales also provide student loans for PhDs.

Basically, it looks a little like this:

England - Masters degrees and PhDs
Wales - Masters degrees and PhDs
Scotland - Postgraduate Diplomas and Masters degrees
Northern Ireland - Postgraduate Certificates, Postgraduate Diplomas and Masters degrees

#4 "The loans are means-tested"

New changes mean that Welsh Masters loans do use a partially means-tested system to calculate how much of a student's funding is a loan and how much is a grant.

But all other UK postgrad loans aren't means tested. The amount of money you have in your bank account doesn’t make any difference to what you can borrow. Nor does the amount in your parents’ bank account. Or whatever you have stuffed down the back of the sofa.

There’s also no credit check for a postgraduate loan – you just need to be an eligible student, studying an eligible course.

#5 "It's just for fees"

Well, not necessarily.

Northern Irish postgraduate loans are just for fees and are paid directly to your university. The same is true for part of the Scottish loans.

English and Welsh loans, on the other hand, are what the government calls a ‘contribution to the cost’ of Masters (or PhD) study. They aren’t specifically provided for fees or maintenance. Instead the money is paid to you in regular instalments and you can do what you like with it. Of course, this makes it even more important to budget effectively during your postgrad degree.

#6 "You have to borrow the full amount"

The amount of postgrad loan you can get for a Masters-level course depends on which part of the UK you're from:

Students from England can borrow up to £11,570
Students from Wales can borrow up to £17,000 (this is means-tested)
Students from Scotland can borrow up to £10,000
Students from Northern Ireland can borrow up to £5,500

All four schemes are flexible though. If you only need a smaller amount of money – to cover fees, help out with living costs or top up other funding – you can borrow less. You can actually request as little as £1, but that would be a bit odd.

#7 "You have to study an MSc in Economics at Cambridge after graduating from Oxford with a double-first in PPE"

Actually, you can study more or less whatever you want, wherever you want. There are no general subject restrictions and postgraduate student finance is available at all public universities (and many private providers) in the UK.

Your undergraduate degree (or result) doesn’t matter either. If you’ve been accepted to study on an eligible course, you’re good to go!

#8 "You have to study in the UK"

Well, yes and no. Your course has to be delivered by a UK university, but you only need to be in the UK for 50% of it. You're free to take advantage of Erasmus placements or other study abroad opportunities during your Masters.

#9 "Brexit means. . ."

Unfortunately, EU nationals are no longer eligible for postgraduate loans unless they have EU settled status or indefinite leave to remain.

Our FAQ is the place to go for other questions about Brexit and postgraduate study.

#10 "You'll end up repaying everything you earn, forever"

Postgrad loans will add to your student debt, but they won't necessarily add a huge amount to your repayments.

English and Welsh Masters loans currently use a lower repayment rate (6%) than undergraduate loans (9%). Scotland and Northern Ireland combine undergraduate and postgraduate loans so that students only ever make one repayment.

All of the loans stop taking repayments whenever your income drops below a certain threshold and all of them write off any unpaid debt after a certain period of time.

#11 "You need to repay your undergraduate loan first"

Actually, you don't. It's perfectly fine to apply for a postgraduate loan before you've even started paying off your undergraduate student loan. This is what most students who continue straight to a Masters will end up doing.

The only time you'll have an issue is if you should have repaid some of your existing student loans and haven't. This could happen if you've moved abroad and not told the Student Loans Company about your earnings there. Best to sort that, if so.

#12 "This is the only postgrad funding you can get"

Actually, there are plenty of other options out there, from university scholarships and charitable grants to employer support, or even crowdfunding. All are worth considering as you plan your funding.

. . .So there you have it. Hopefully this has made postgraduate loans seem a little bit less confusing. Remember that you can check our guides and FAQs for more information. If you still can't find the answer to a question you're looking for, email us at editor[at]findamasters.com.