UK Postgraduate Loan Changes for 2017

It doesn't seem so long ago that the UK introduced its first ever postgraduate loans for Masters students. In fact, it wasn't: the loans were made available from the 1st of August last year. A mere five months ago.

Well, they're already changing. But the news is all good.

Students beginning a Masters in 2017 will be able to borrow slightly more (£10,280 instead of £10,000). There will also be more flexible arrangements for courses lasting more than two years.

We've already updated our main guide to the loans, but this post will run you through the major changes. There's also some exciting news for students in Scotland, Wales and Northern Ireland who weren't able to apply for a loan in 2016.

The biggest change is the increase in the loan amount from £10,000 to £10,280. This is in line with inflation, essentially, but it should help allay concerns that loans might increase the cost of a Masters.

So, can I increase the amount of my existing postgraduate loan?

Unfortunately not. This increase only applies to loans taken out for the 2017-18 academic year. If you took out a Masters loan last year you won't be able to increase the amount.

Have there been any other changes to the loan payments?

Payment terms for courses lasting longer than two years have been altered (see below). Otherwise the main details of the loan are the same.

You can still decide how much you want to borrow (up to the new maximum) and your loan will still be non-means-tested, paid directly to your bank account.

What about repayments?

These haven't changed either. You'll still repay at 6% of income over £21,000 once you graduate - it's just that you'll be paying back a slightly larger loan.

Loans are still available for courses lasting up to two years full time, or four years part time. However, the payment terms are now more flexible.

Previously, students only received money in the first two years of their course (even if it lasted longer). This didn't reduce the total amount you could borrow, but it did make budgeting harder.

Now, students on three and four year Masters programmes will receive loan payments across their course.

The system for this will be the same as before:

• Your loan will be divided equally across each year of study.
• You'll receive each annual portion for each year in three roughly equal instalments: 33% in the first and fourth months of your course, and 34% in the seventh.

Can you give me an example of how payments would work for different students?

Sure.

Let's first say you're a full-time student, on a one-year Masters. You also decide to take out the full £10,280 loan. Your loan is paid out across the academic year, in three instalments as follows:

• Approximately £3,392 (33%) in the first month of your course.
• Approximately £3,392 (33%) in the fourth month of your course.
• Approximately £3,495 (34%) in the seventh month of your course.

Now let's say you're a part-time student, on a four-year Masters. You still decide to take out the full £10,280, but now this amount is divided into four annual portions of £2,570.

Each £2,570 is still split into three instalments, across each year, as follows:

• Approximately £848 (33%) in the first month of the first year of your course.
• Approximately £848 (33%) in the fourth month of the first year of your course.
• Approximately £873 (34%) in the seventh month of the first year of your course.

This pattern would repeat across the second, third and fourth years of your Masters.

I started a three or four year Masters last year, will the payment terms for my loan become more flexible?

Probably not. The new terms will generally only apply to new students as altering the instalments for existing payment plans could be complicated.

These changes still only apply to the 'English' loans (available to English-resident students) introduced in 2016. And, if you're normally resident in Scotland, Wales or Northern Ireland, well, you're probably sick of hearing about loans for English students.

But that's all changing this year. There's a very good chance that all UK students will be able to access a postgraduate loan of some sort in time for the 2017-18 academic year.

• Northern Ireland has had its plans for £5,500 tuition-fee loans for postgraduate courses in place for a while. They'll be available for students in 2017-18.
• Scotland confirmed plans for its own £10,000 loans at the end of 2016. They'll be available for students in 2017-18.
• Wales is planning some of the UK's most ambitious postgraduate funding and finance, with up to £17,000 in loans and grants on the cards from 2018. An interim system of £10,000 loans may also be introduced in time for 2017-18.

You can see a quick summary of the different loans in the table below:

Don't worry about it.

All parts of the UK have confirmed that EU students will have access to existing fee and student finance arrangements for the 2017-18 academic year.

It's unlikely that this will exclude new postgraduate loans. We'll be taking a close look at the details for the Scottish, Northern Irish and Welsh schemes once they're finalised.