Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
It’s been one month (17 July 2023) since you may have heard of the new changes that the UK Government published to the Immigrant Rules which affect international students studying in the UK. So if you’re an international student looking to study a postgraduate research programme, you’ll need to be aware of what the changes mean to you.
What are the changes?
There are two parts to the changes.
Firstly, as an international student, you will no longer be able to switch your study route visa to a work route visa before you complete your course. This means you will be unable to drop out of your course and work elsewhere in the UK. You are encouraged to complete your studies before switching.
Secondly, from January 2024, if you are an international student studying a non-research postgraduate course, you will be unable to bring family members to the UK during your studies. These include your immediate family such as your mother, father, spouse or children.
What are ‘non-research’ programmes?
Typically, there are two different types of master’s taught at the postgraduate level. These are taught and research programmes. But what are the differences between the two?
Research master’s are independent in nature – you won’t have many classes on your timetable (maybe even none). Instead, the focus of your programme will be on your own research work, which you’ll still be able to receive support and guidance from your lecturer and expert supervisors.
Taught master’s are similar to undergraduate programmes. You’ll have a set series of modules with timetables for seminars, lecturers, and other activities. You won’t have as much autonomy on your chosen topic as the lecturers and academic leaders will lead you through your course.
You can find more information about the new rules on the UK Government website for Student Visa.
Frequent Questions
When will the changes come into effect?
From 3pm on 17 July 2023, international students won’t be able to switch their student route visa into a work visa until they complete their course.
From 1 January 2024, the new rules to international students can no longer bring their dependency will be enforced.
Can I bring my dependency between now and 1st January 2024?
If you are an international student on a student visa currently studying a research or taught postgraduate degree (Master’s or PhD), you will still be allowed to bring your dependencies to the UK by the end of 2023.
My course starts in September/October 2023. Can I still bring my dependants?
Yes, this is permitted under the current rules.
Does the new rules affect PhD students?
We don’t believe so. This is because PhD’s are research-based programmes.
However, if you are looking at doing a 1 +3 programme, you’ll need to speak with your university first as to how the course will be classified. This is because there may be taught elements in your first year.
My course starts in 2024. Will I still be able to work part-time while on a student visa?
Yes, international students can work up to 20 hours during term time and more during official vacation periods.
There are no current plans in place to change this rule.
I’m still unsure whether the new rule affects me. What should I do?
If you’re unsure whether the new rules affects you, it would be best to speak to your university. From there, they will give you advice or recommendations where you may seek professional assistance.
For further information on the visa, please visit the Student Visas page on the UK Government website.
I need help to finance my postgraduate studies
At Lendwise, we aim to bridge the financial disadvantage gap when it comes to funding postgraduate studies. If you are looking to study an MBA or equivalent degree in the UK, you may be in luck. Transform your MBA dreams into Business Schools such as London Business School, Saïd Business School and Imperial College Business School into reality.
We’re here to help turn your aspirations into reality. *Apply online.
*Credit is subject to status and loan approval is not guaranteed. Over 18’s only. Terms and condition apply.
Representative Example: Assumed borrowing of £30,825 over 120 months at 12.73% APR representative. Monthly cost of £509.26. Total amount repayable of £61,199.65. Interest rate of 11.62% p.a.(fixed) and total fees of £925.00. Available for loan amounts between £5,000 – £100,000.
(Representative Example date: October 2024)
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment
to be high risk.
What are the key risks?
You could lose the money you invest
Many peer-to-peer (P2P) loans are made to borrowers who can’t borrow money from
traditional lenders such as banks. These borrowers have a higher risk of not paying
you back.
Advertised rates of return aren’t guaranteed. If a borrower doesn’t pay you back as
agreed, you could earn less money than expected. A higher advertised rate of return
means a higher risk of losing your money.
These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does
not reduce the risk of the investment or protect you from losses, so you can still
lose all your money. It only means that any potential gains from your investment
will be tax free.
You are unlikely to get your money back quickly
Some P2P loans last for several years. You should be prepared to wait for your money
to be returned even if the borrower repays on time.
Some platforms may give you the opportunity to sell your investment early through a
‘secondary market’, but there is no guarantee you will be able to find someone
willing to buy.
Even if your agreement is advertised as affording early access to your money, you
will only get your money early if someone else wants to buy your loan(s). If no one
wants to buy, it could take longer to get your money back.
Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is
risky. Spreading your money across different investments makes you less dependent on
any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk
investments.
The P2P platform could fail
If the platform fails, it may be impossible for you to collect money on your loan.
It could take years to get your money back, or you may not get it back at all. Even
if the platform has plans in place to prevent this, they may not work in a
disorderly failure.
You are unlikely to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS), in relation to claims against
failed regulated firms, does not cover investments in P2P loans. You may be able to
claim if you received regulated advice to invest in P2P, and the adviser has since
failed. Try the FSCS investment protection checker here
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment
performance. If you have a complaint against an FCA-regulated platform, FOS may be
able to consider it. Learn more about FOS protection here
If you are interested in learning more about how to protect yourself, visit the FCA’s website
here
For further information about peer-to-peer lending (loan-based crowdfunding), visit the FCA’s
website here
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