or
Looking to list your Masters courses? Log in here.
It's only been a few months since UK postgraduates gained access to student loans for the first time. As regular readers of the blog will be well aware, these offer up to £10,000 for English-resident students to study a Masters anywhere in the UK.
But what if you aren't eligible for a UK Masters loan? What if you aren't ordinarily resident in England? And what if you don't actually want to study your Masters in the UK? Or, what if you're a resident of another European country, who does want to study a Masters in the UK?
Well, as of this autumn, there's now another option on the table. The Erasmus programme has extended its own Erasmus+ Masters Loans to Britain.
These aren't quite the same as a conventional student loan: they're offered by banks, not governments and they're only available for students who want to study abroad - specifically in Europe.
This post explains how the Erasmus loans work in relation to the UK, who offers them, who can benefit from them and how they compare to other student loan options.
Erasmus Masters Loans have actually been around for a couple of years, but it's only in 2016 that they've been introduced in the UK.
They're part of the wider Erasmus+ programme, which funds study abroad across Europe (including postgraduate courses). Whereas other Erasmus funding supports specific degree programmes (such as Erasmus Mundus Joint Masters Degrees) the loans are available for anyone who wants to study abroad.
Banks in participating countries agree to offer this finance, according to guidelines set by the scheme. This means that loan amounts, interest rates and repayment terms are all subject to guarantees.
The best place to go for a full explanation of the Erasmus Masters Loans as a whole is our detailed guide. The following is a quick run-down of their key points:
Interest rates and repayment terms are set by individual banks, but are guaranteed by the European Investment Fund (EIF). This means that you won't have to provide any additional collateral as part of your application.
Repayment terms must also follow guidelines set by the Erasmus+ Programme. You are entitled to a one-year grace period before making repayments and a further one-year repayment holiday at any point during your repayment process.
These measures are designed to reduce pressure on Masters graduates. They also provide a safety net for anyone who is temporarily out of work or faced with other financial commitments.
In the UK, Erasmus Loans are offered by a company called Future Finance. They began partnering with the Erasmus+ Programme in October 2016.
All of the normal terms given above apply to Erasmus Loans in the UK. Specific details of the Future Finance Erasmus Masters Loans are as follows:
The loans are available for students from the UK to study a Masters in another Erasmus Programme country, or for students from those countries to study a Masters in the UK.
2016 has certainly been an interesting year for postgraduate study in the UK, with loans now available from the UK government and the Erasmus programme.
This means that many UK and EU students now have two different finance options available to them.
So, how do they compare? The following table puts the two schemes side by side:
UK Postgraduate Loans | UK Erasmus Masters Loans | |
---|---|---|
Courses | Masters degrees in the UK | Masters degrees in any Erasmus Programme Country |
Length | Up to 4 years | Up to 2 years |
UK eligibility | UK national, resident in England, studying in the UK | UK national, resident anywhere in the UK, studying in an Erasmus Programme Country |
European eligibility | EU national, resident in the EU, EEA or Switzerland, studying in England / EEA or Swiss national, resident in the UK, studying in England | National of an Erasmus Programme Country, studying abroad in the UK |
Maximum value | £10,000 | £13,900 |
Repayment | 6% of income over £21,000 per year, beginning 2019, written off after 30 years | Full repayment within 6 to 10 years, beginning one-year after course ends, optional one-year repayment holiday |
Interest | RPI+3% | 7.5% |
Note that the above table only refers to the UK Erasmus Masters Loans as offered by Future Finance. Information is accurate as of November 2016, but you should check their official details for up to date information on lending terms, interest rates and other details.
For more general information on both loan schemes see our guide to the UK postgraduate loans and the Erasmus+ Masters Degree Loans.
The result of the UK's EU Referendum may have an effect on future participation in Erasmus funding schemes, but this isn't certain.
The UK is able to participate in the Erasmus Masters Loans because it is currently an Erasmus Programme Country. Not all Erasmus Programme Countries are members of the European Union and it possible that the UK may continue to participate in Erasmus after Brexit. However, this is likely to depend on the results of negotiations between the UK and EU and is hard to predict.
What we do know is that you can apply for an Erasmus Masters loan for a course beginning in 2017 if you:
And remember, it's not just the UK that offers Erasmus Masters loans. Banks in Spain and France also participate. For more details, see our full guide.
We'll be watching the Brexit process closely and making sure to update you with any postgraduate issues, here and via our newsletter.