Masters Degree Loans Round-up - Postgraduate Finance in 2017

Last week was a pretty important one for future postgraduates. For the first time ever, student loans for Masters degrees were available across the UK, with applications now open in all of England, Wales, Scotland and Northern Ireland.

This is great news if you've yet to sort your student finance next year. But, with four loan systems available in the UK alone, things could get a little bit confusing.

That's where this post comes in.

If you aren't sure which loan to apply for, what loans to apply for (or whether you can apply for a loan at all) the following summaries should help.

It's not all about UK students, either. Support for EU and international students is also covered below.

Masters loans may feel like (relatively) old news in England, but their value has increased for new students this year.

English loans of up to £10,280 are now available for taught and research Masters degrees across the UK in 2017.

The good

English postgraduate loans are some of the most flexible, financially. You can borrow whatever you want up to the maximum and use that money as you see fit: for fees, living costs or anything else.

The repayment threshold for English (and Welsh) loans is also slightly higher than for Scottish and Northern Irish loans - £21,000 rather than £17,775. This means you can earn more before you start making repayments (and deductions will be made on a smaller part of your income).

The bad

English loans are slightly less flexible when it comes to the courses you can study. Taught and Research Masters degrees are eligible, but courses below Masters level (such as Postgraduate Certificates and Diplomas) aren't.

The eligibility criteria

In order to apply for an English postgraduate loan you'll need to be either:

• A UK student ordinarily resident in England (not simply studying there).
• An EU student moving to study a Masters in England.

See our guide for further information.

Wales has some ambitious plans for postgraduate funding, but the loans it offers for 2017-18 are currently modelled on the English system.

Welsh postgraduate loans of up to £10,280 are available for taught and research Masters degrees across the UK in 2017.

The good

Welsh postgraduates currently benefit from loans with all the advantages of the English system. You can borrow up to the same amount and the money will be paid directly to you (not to your university). Taught and research Masters degrees are also eligible.

The bad

Again, the Welsh system is (currently) more or less identical to the English system. You can't take out a loan for a course below full Masters level (worth less than 180 credits) but you can study a taught or research programme.

The only minor difference is that repayment rates for Welsh loans are currently slightly higher than for English loans (9% rather than 6%). However, this is likely to have been lowered by the time you actually begin repayment.

The eligibility criteria

In order to apply for a Welsh postgraduate loan you'll need to be either:

• A UK student ordinarily resident in Wales (not simply studying there).
• An EU student moving to study a Masters in Wales.

See our guide for further information.

Scotland has actually provided loans for Postgraduate Diploma courses for several years, but it's only in 2017 that this support has been extended to Masters degrees.

The country's new postgraduate finance system is also unique in offering two loans: up to £5,500 for fees and up to £4,500 for maintenance (£10,000 in total).

The good

Unlike England and Wales, Scotland offers support for Postgraduate Diploma courses as well as full Masters degrees - perfect if you want to study a shorter course (or don't fancy a dissertation).

Interest rates for Scottish (and Northern Irish) postgraduate loans are also currently lower than those in England and Wales (1.25% rather than RPI+3%).

The bad

In some ways, Scottish postgraduate loans are a little more limited than options in other parts of the UK. For one thing, this support is only available for taught courses.

The split between tuition fee and maintenance loans also means that only part of what you borrow will be paid to you. (On the other hand, you can 'top up' your tuition fee loan with your maintenance loan, if your course fees require it).

At £17,775, the repayment threshold for Scottish postgraduate loans is lower than those in England or Wales (but the same as that in Northern Ireland). Scottish loans also take longer to expire (your debt won't be written off until 35 years after graduation - five years longer than England and Wales).

Finally, EU students should be aware that they'll normally only be eligible for a Scottish tuition-fee loan.

The eligibility criteria

In order to apply for a Scottish postgraduate loan you'll need to be either:

• A UK student ordinarily resident in Scotland (not simply studying there).
• An EU student moving to study a postgraduate course in Scotland.

See our guide for further information.

Northern Ireland recently became the final UK country to open applications for its postgraduate loans, with up to £5,500 available for tuition-fees on taught or research postgraduate courses across the UK in 2017.

The good

When it comes to courses, Northern Ireland offers the most flexible postgraduate loans in the UK. You can borrow towards the cost of taught or research course at Postgraduate Certificate, Postgraduate Diploma, or Masters level.

Like Scotland, Northern Ireland also charges a slightly lower interest rate for its loans (currently set at 1.25% rather the than RPI+3% rate used in England and Wales).

Finally, Northern Irish postgraduate loans are also written off earlier than others: at 25 years, rather than 30 or 35.

The bad

Though they may be flexible in terms of course eligibility, Northern Irish loans are more limited financially.

You can only borrow up to £5,500 and this can only be used for tuition fees. In fact, you won't actually see the money yourself: it will be paid to your university.

Like Scotland, Northern Ireland also begins repayments at an income threshold of £17,775 a year (less than the £21,000 threshold used in England and Wales).

The eligibility criteria

In order to apply for a Northern Irish postgraduate loan you'll need to be either:

• A UK student ordinarily resident in Northern Ireland (not simply studying there).
• An EU student moving to study a postgraduate course in Northern Ireland.

See our guide for further information.

The good news is that all of the UK postgraduate loan schemes described above are open to EU students in 2017-18 - and this won't be affected by Brexit.

If you already live in the UK, you should normally apply for a loan from the UK country you are ordinarily resident in. You can then use this to study a Masters in any other part of the UK, much like a 'domestic' student.

Alternatively, if you are moving to the UK specifically for a postgraduate course, you should apply for a loan from the country you will be living and studying in. Unfortunately, you won't be able to pick and choose a loan from one country to study a Masters in another.

Erasmus loans

Of course, UK postgraduate loans aren't the only source of postgraduate finance in Europe - or even in the UK.

Erasmus loans are another option for eligible EU students, offering up to €18,000 to study a Masters abroad (including in the UK).

UK students are also eligible for this funding next year, provided they are studying abroad in Europe for the first time.

Students from outside the EU aren't normally eligible for UK postgraduate loans or Erasmus loans. Exceptions may apply, but you'll normally need to look for other sources of funding.

Thankfully, other international postgraduate funding options are available in the UK and elsewhere.

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