Issue 2
First announced as part of the UK Chancellor’s 2014 Autumn Statement, Postgraduate Loans were reconfirmed as part of the 2015 Spending Review.
The announcement has been widely welcomed by several higher-education organisations. Megan Dunn, NUS Vice President (higher education), said: “A government-backed postgraduate loans scheme will make a fundamental difference to the lives and opportunities of students. Many postgraduates are currently funding their study through potentially disastrous measures such as credit cards, overdrafts and personal loans.”
The loan will contribute towards their course and living costs, opening up opportunities for students who might not be able to commit financially to a postgraduate course.
Here’s a rundown of the things you need to know about the new loans system.
What can they get?
They can apply for up to £10,000 to contribute towards the cost of their course and their living costs while they study. Payments will be made straight to the student in three instalments during the academic year.
For students on courses that are longer than one year, they can borrow up to £5,000 in their first year and the rest in their second year.
When can they apply?
They can apply for a Postgraduate Loan this summer, and they’ll only have to apply once, even if their course is longer than one year.
What about repayments?
They’ll repay 6% of their income over the threshold (currently £404 a week, £1,750 a month or £21,000 a year) towards their Postgraduate Loan. Repayments will normally start the April after they finish or leave their course, but no repayments will be taken before April 2019.
What you need to know
When it comes to repayment there are a couple of differences from other student loans that you, and your students should be aware of:
Interest will be charged at RPI plus 3% from the day the first payment is made to the student until the loan is repaid in full or written off. It won’t vary depending on their income after they finish their course.
If they have any other loans from the Student Loans Company they’ll also repay these at the same time. This means that students may have two payments taken from their wages once they start making repayments, 6% of their income over the threshold for their Postgraduate Loan and 9% of their income over the threshold for the loans they took for their undergraduate course.
▌New Postgraduate Loan resources are available now
Our new film to introduce Postgraduate Loans to your students, is available on our YouTube channel and our practitioner website.
You can order free printed copies of our Introduction to Postgraduate Loans quick guide to hand out to your students.
During Student Money Week taking place from 8-14th February, we’ll have experts on hand to answer any questions you or your students have about Postgraduate Loans in a dedicated surgery.
There’s also a helpful factsheet just for you, and more information about who can get Postgraduate Loans and what courses are eligible on our practitioner website – www.practitioners.slc.co.uk
We’ll be adding more information in the spring, so make sure you check back here then.
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