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Loans

Loans 

What do I need to consider before taking out a loan?

It is important to check whether the loan company offering you a loan is authorised by the Financial Conduct Authority (FCA) so you can protect yourself from fraud or other unauthorised activity. The FCA website which explains how you can do this and where you can check the register of authorised firms.

You should also make sure you fully understand the terms and conditions of any loan or credit that you take. Before you decide to take out a loan first check:

  • how much you need to borrow
  • how much your monthly repayments will be
  • what the interest rate is and whether this is fixed or variable
  • the length of the loan agreement
  • the frequency and timing of payments
  • how you will repay the loan from your future earnings
  • at what point in your studies to take the loan – this will depend on your own circumstances; some students may need the money earlier in their studies, while others may need it later
  • what happens if you take longer to complete your studies than originally planned
  • whether you can reduce the amount you need to borrow by exploring other sources of funding or reducing your spending
  • How much in total you will end up repaying

Contact a Welfare Adviser in the Advice and Counselling Service if you would like some help thinking through these issues before you make a decision about taking out a loan.

 

Student Finance England Postgraduate Master's Loans

Postgraduate Master's Loans are intended as a contribution towards the cost of study, so eligible students can use them as they wish to (e.g. for tuition fees, or living costs, or other costs). 

The Masters Loan is paid directly to you, not the University. Unlike undergraduate funding there are no additional loans to pay course tuition fees or support children or other dependents.

The loan is non-income assessed and has to be paid back. 

You must be aged under 60 on 1st August of the year in which you start the course. 

Which courses can I get a Master's Loan for?

Master's Loans are available for study at any UK university with degree awarding powers, or an alternative funding provider with degree awarding powers.

Master's Loans are available for both taught Masters programmes as well as Masters by Research, and across all subject areas. They are also available for designated distance learning courses, provided you are living in England.

Students are not eligible for a Master's Loan where they are eligible to apply for a healthcare bursary or are in receipt of a social work bursary from any of the following:

  • National Health Service (NHS)
  • Department of Health, Social Services and Public Safety (DHSSPS)
  • Student Awards Agency Scotland (SAAS)

A full-time course must be a maximum of 2 years long, and a part-time course must be either:

- a 1 year full-time equivalent course studied part-time over 2 years, or

- a 2 year full-time equivalent course studied part-time over 3 or 4 years, or

- 3 year part-time course which does not have a full-time equivalent

How much can I borrow?

Eligible students can borrow up to a maximum for the whole course of:

  • £10,909 for students starting in 2019-20
  • £10,609 for students starting in 2018-19
  • £10,280 for students starting in 2017-18
  • £10,000 for students starting in 2016-17

If the course is longer than one year, the total loan amount will be split across the number of years of the course, for example on a two year course starting in 2019 you would get up to £5000 in each year.


If you initially choose to borrow less than you are entitled to, but later decide that you need to borrow more, you can ask SFE to amend the loan amount. You need to complete a ‘loan request form’ which you can download under the 'change an application' section (you cannot make this request online). The deadline for doing this is the end of May in the first academic year if your course is one year long, or by the end of May in the second academic year if your course is more than one year long.

What is the interest rate on the Master's loans?

Interest is charged from the date you receive your first loan payment. The interest rate is the current RPI (Retail Prices Index) percentage rate, plus an additional 3%. This means that from 1 September 2018 until 31 August 2019 the interest rate will be 6.3%.

How is the Master's Loan paid?

Payment will be released once your university has confirmed to SFE that you are studying. The Master's Loan will be paid from the Student Loans Company direct to you in three equal instalments across the academic year as follows:

Payment 1 – Once you have enrolled on your course (normally in late September or early October)

Payment 2 – last Wednesday of January

Payment 3 – last Wednesday of April

How and when do I apply for a Master's Loan?

Applications should be made online to Student Finance England. Apply as soon as you can to try and ensure that your loan is available at the start of the academic year.

You must apply no later than the end of May in your first year if your course is one year long, or by the end of May in your second year if your course is more than one year long.

The application deadline may be extended if you were not eligible for the Postgraduate Loan at the start of the academic year but only became eligible part way through.

You will submit your online Terms and Conditions (OTC) via your online account with an Electronic Signature (E-Signature) so you will not need to sign any paper forms and send them by post.

What documents will I need to provide?

This is explained on the gov.uk website.

Do I need a National Insurance Number (NINO)?

No payments will be released until a valid National Insurance Number (NINO) has been received and verified, unless you are a non-UK EU student. If you have already had your NINO verified as part of an earlier SFE application, the NINO does not need to be verified again.

What if something changes after I have applied?

If any personal information changes after you submit your application, such as a change of address or bank account details, you can update this information via your online account.

If other changes happen, for example you decide to enrol at a different university or on a different course, you cannot change this online, so you need to download and send in a ‘change of circumstances form’.

I already hold a Masters or higher level qualification – can I get a Master's Loan?

You won't normally be eligible for a Master's Loan if you already hold a Masters degree or higher level qualification, regardless of how it was funded or whether or not it was achieved in the UK.

I started a previous Masters but did not complete it – can I get a Master's Loan?

Eligibility for a Master’s Loan is not affected by previous postgraduate study if you did not achieve the qualification and did not receive a loan. However, in order to receive a Master's Loan you must undertake a full master’s degree course and not a partial course topping up from previous study or experience.

You will be ineligible for a Master's Loan if you undertook a previous postgraduate Master’s degree, did not successfully complete it and received the Master's Loan (or any other loan provided by a UK government authority) for that course.  This applies even where you did not receive full payment of your loan.  However if SFE accept that you did not complete the course due to a compelling personal reason (CPR), they can award a Masters Loan for a second course.  Evidence must be provided to SFE for them to consider this. Contact a Welfare Adviser if you think this applies to you. 

What is the personal eligibility criteria?

Please see the Appendix at the end of this guide for information about eligibility.

How will loan repayments work?

Loans are normally repayable from the April following course completion, so if you study a one year programme starting in September in the 2019/20 academic year, you will become liable for repayments in April 2021.

You will only be liable to make repayments once you are earning at least £21,000 gross in a tax year, or the equivalent to this amount in any shorter period that you work (for example if in any week or month your earnings would equivocate to an annual income of at least £21,000). You will repay 6% of your income above £21,000.

The Postgraduate Loan repayment information on the Find a Masters website has worked examples and a calculator you may find useful to help you calculate your individual repayments. The gov.uk page also has repayment information.

If you are repaying from overseas, the repayment threshold will be based on the cost of living in your country of residence.

What happens if I fail to complete my Masters?

If you do not achieve your Masters qualification, or if you are awarded a lower level qualification, Master's Loan funding that you have already received will not be considered an overpayment. However, further Master's Loan funding will not be available for a new course unless you failed to complete the first course due to compelling personal reasons.

Where can I get more information?

https://www.practitioners.slc.co.uk/products/postgraduate-education/postgraduate-masters-loan/ 

https://www.gov.uk/masters-loan

www.findamasters.com/funding/guides/new-uk-postgraduate-loans-scheme.aspx

 

I am from Wales, Scotland or Northern Ireland 

If you normally live in Scotland, Wales or Northern Ireland, your package of government Student Finance will be different. You need to contact the funding authority in your home country. 

Postgraduate Master's Loan:

The findamasters.com website explains how much Postgraduate Master's Loan is available in 2018/19 for students from Wales, Scotland and Northern Ireland who are studying in the UK.  Also visit Student Finance WalesStudent Awards Agency Scotland and Student Finance Northen Ireland.

Doctoral Loan:

Visit Student Finance Wales to find out about their Doctoral Loan.  The Student Awards Agency for Scotland and Student Finance Northern Ireland do not currently provide these loans.

If you have moved to England from Scotland, Wales or Northern Ireland also read the information in our Student Finance England Eligibility  page specifically for students from Scotland, Wales and Northern Ireland.

 

Student Finance England Postgraduate Doctoral Loans

If you’re starting a Postgraduate Doctoral course, you may be eligible for a Postgraduate Doctoral Loan to help towards your tuition and living costs. Postgraduate Doctoral Loans are non-income assessed and have to be paid back. 

What is the eligibility criteria?

  • You must be aged under 60 on the first day of the first academic year of your course. Please click here for the definition of an academic year
  • You must not be receiving any Research Council Funding (even a partial award)
  • You must not have already received a Doctoral Loan
  • You must be studying for your first Doctoral degree. If you already hold an equivalent or higher level qualification, you aren't eligible
  • You must be studying on an eligible course (see below)

Which courses are eligible?

Your course must:

  • be a full, standalone doctoral course (not a top-up course)
  • have started on or after 1 August 2018
  • last between 3 to 8 academic years
  • be provided by a university in the UK with research degree awarding powers

There are no restrictions on subjects, disciplines, research areas or topics.

If more than one university delivers your course and one is overseas, you’ll still be eligible for the Postgraduate Doctoral Loan so long as:

  • the UK university is the lead institution
  • you spend at least 50% of your study time over the whole course in the UK

The course can be either full or part-time.

If your course is undertaken by distance learning, you must be living both in England on the first day of the first academic year of your course, and within the UK for the whole of your course.

Eligibility also depends on your nationality and residence. Please see the Appendix of this guide for eligibility information.

How much can I borrow?

If your course starts in 18/19, you can borrow up to £25,000 for the whole course. If your course starts in 19/20, you can borrow up to £25,700. This is not income assessed. 

How is the Doctoral Loan paid?

The total loan will be divided equally across each year of your course. For example, if your course starts n 18/19 and you apply for the maximum amount of Postgraduate Doctoral Loan and study over four years, you’ll get £6,250 in each year of your course.

The amount of loan you can receive each year will be split into three instalments and payments will be spread across the year. After your application has been approved you’ll be sent a letter with your payment dates or you can check them in your online account. You will usually get the first payment shortly after you have enrolled.

How and when do I apply for a Doctoral Loan?

You should apply online as soon as possible to ensure your funding is in place before you start your studies. 

What is the interest rate?

Interest is charged from the date you receive your first loan payment. The interest rate is the current RPI (Retail Prices Index) percentage rate, plus an additional 3%. This means that from 1 September 2018 until 31 August 2019 the interest rate is 6.3%.

How will loan repayments work?

Loans are normally repayable from the April following course completion. You will only be liable to make repayments once you are earning at least £21,000 gross in a tax year, or the equivalent to this amount in any shorter period that you work (for example if in any week or month your earnings would equivocate to an annual income of at least £21,000). You will repay 6% of your income above £21,000. If you already have a Postgraduate Master’s Loan then you’ll make a combined repayment of 6% covering both postgraduate loans.

Where can I get more information?

https://www.practitioners.slc.co.uk/products/postgraduate-education/postgraduate-doctoral-loan/

https://www.gov.uk/doctoral-loan

https://www.findaphd.com/funding/guides/uk-phd-loans-scheme.aspx​

Professional and Career Development Loans

The Professional and Career Development Loan (PCDL)scheme closed on 25 January 2019 and no new applications can be made.   The closure will not affect existing loans. 

You may already have taken out a PCDL or submitted an application before the closing date and it is possible to hold both a Postgraduate Loan and a PCDL at the same time if your student loan does not provide you with sufficient income.

Before taking out both loans, you should think very carefully about whether you will be able to afford the repayments of two loans after course completion. See the previous section 'What do I need to consider before taking out loans?'

Shariah-Compliant Loans

Islamic Sharia law prohibits 'Riba', which means the paying and receiving of interest for profit. The prohibition is usually applied to excessive or unreasonable interest but is sometimes deemed to include the commercial rate of interest paid on a Professional and Career Development Loan, Student Finance loan, bank overdraft or credit card. For more information on Shariah-Compliant loans see the Advice and Counselling Service Student Loans and Shariah law webpage.

Other Loans

Other bank, private and payday lending loans are available. They may seem attractive but their terms and conditions such as high interest rates or immediate repayments tend to make them unsuitable for students.

A credit card is another type of loan which enables you to borrow money. Unless you pay off the balance in full every month, you will be charged interest. Although there are some 0% interest and balance transfer offers, there can be hidden charges such as transfer fees as well as high interest rates once the offer period ends. Always check the terms and conditions before taking a credit card and make sure you know what the interest rate is, how you will afford the repayments and what you will be charged if you fail to make the minimum monthly repayment.

If you already have credit cards and cannot afford to make repayments or you are only making the minimum monthly repayment and being charged high levels of interest, contact a Welfare Adviser in the Advice and Counselling Service for advice about your options. You might also find it helpful to look at the debt section of our website and you could contact the charity Stepchange for advice about your options.


Disclaimer:
Law, regulations and policies can change quickly. The information on our website is given in good faith and has been carefully checked but QMUL cannot accept responsibility for any errors or omissions. QMUL is not responsible for the content or reliability of the linked websites which are provided for further information.

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