Professional and Career Development Loans for Masters Degrees

Professional and Career Development Loans (PCDLs) were bank loans backed by the government to help pay for advanced courses that could improve your job chances. Students could borrow up to £10,000 for their studies. These loans had a 9.9% yearly interest rate on any money you still owed.

So you may be wondering "What has replaced the career development loan?", that's where I'm here to help. In this guide I will explain what these loans were, show you other ways to pay for your education, and tell you how loan repayments work after you finish studying.

Professional and Career Development Loans (PCDLs) were bank loans that helped people pay for Masters degrees or training courses in the UK. You could get up to £10,000 to pay for classes and other costs. Banks like the Co-operative gave these loans, and the Government helped support them so people could learn new skills and get better jobs.

People usually started repaying these loans one month after finishing their course. This gave them time to find a job first. The loans had fixed interest rates and different ways to pay them back.

The PCDL was discontinued in January 2019, so new Masters students can no longer use them as a form of funding for their degree. However, there are many other funding options still available for Masters students. We’ve listed some alternatives that you can look at if you’re looking to fund a Masters degree in the UK.

UK Government postgraduate loans

One of the most common forms of funding for UK Masters students, the postgraduate loans were actually developed as a way of providing financial support that PCDLs couldn’t offer by themselves. The loans are provided by the Student Finance in each country in the UK so loan amounts and eligibility criteria differ. Read our guides on Masters loans in the UK for more information.

It is important to note that the English and Welsh loans are only available for a full Masters so if you’re studying a PGDip and PGCert you won’t be eligible for a loan in England and Wales.

Some other funding options

If you think a postgraduate loan will not be enough for you to cover all your costs, you can always supplement with some other Masters degree funding options which include:

• Charities and trusts
• University scholarships
• Employer sponsorships
• Crowdfunding

You can also think about working part-time (or even full-time if your course load allows it) to help cover your living costs.

Even though new students cannot apply for a PCDL anymore, if you had applied for one before 2019, you’ll continue to receive them as normal. This also means you’re going to have to make repayments for your loan as well.

Professional and Career Development Loans need to be paid back in full, however, you only start repaying the loan (plus interest) one month after leaving your course. You have to repay your loan even if you don’t complete the course or your course provider goes out of business.

While enrolled on your course, the Government pays the interest on the loan for you, so you won’t be charged any interest until one month after you finish.

From then on, the bank will charge you interest at a rate of 9.9% per annum on your outstanding balance. The interest charges will be added to your loan balance quarterly until the loan is repaid in full.

Your bank should have already specified what the actual interest rate is when you first applied for the loan. If you still have any questions, you must call the bank and make sure there aren’t any surprises later.

Repayment period

Your first monthly repayment will be due in the second month after your course has ended. These monthly repayments will need to be made by standing order.

Loans can be repaid over one to five years, using 12 to 60 monthly repayments. By spreading your loan over a longer term, your monthly repayments may be lower, but bear in mind that the overall cost of borrowing may be higher.

You may be able to defer repayment for up to 17 months, but only in exceptional circumstances. You must discuss this with the bank before you start the repayments. Remember that you will continue to accrue interest on the loan all during the time that you defer repayments.

1. Have a repayment plan: Before you take out a loan, create a budget that includes your expected repayments. This will help you manage your finances once you finish your course.

2. Consider your future earnings: Think about how the qualification will impact your earning potential. This can help you feel more confident about taking on the loan.