Lendwise Postgraduate Loan

Postgraduate studies refer to courses that are being taken after a first university degree (BSc, BA, LLB). The most usual postgraduate study qualification is the Masters Degree (MSc, MA, LLM) whilst the highest is usually doctorate level studies (PhD). There are also many other postgraduate studies such as certificates (PgCert) and diplomas (PgDip) which can be accomplished in a similar or less time and usually cost less but do not confer the same title level to the student.

The tuition fees for postgraduate study vary widely depending on the university, programme, how competitive the entry to the programme is, and range from a few thousand pounds to top ranked two year MBA programs that might reach or exceed £100,000 in tuition fees. One must also not forget to budget for maintenance or living expenses during the time of the course, lost earnings during the time studied (although the objective and aim of most of these courses is better preparations and tools to achieve higher earnings when accomplished) and servicing ongoing financial obligations.

The UK government has recognised that postgraduate studies are becoming mainstream, a necessity rather than an optionality and since 2016 has been providing student finance for masters courses and doctorate level courses with postgraduate loans.

The tuition fee cost of a postgraduate course can range from £2,500 a year for some distance learning diplomas and masters courses all the way up to nearly £100,000 for an executive MBA from a very exclusive and competitive business school. In addition to the tuition fees any aspiring student will be spending considerable time effort and the decision to embark on a postgraduate course is not an easy one. Considering also that in almost all cases the government student finance will only offer a government postgraduate loan once or only for the first attempt and that this opportunity is eligible until the age of 60, one should not rush into the decision of undertaking such an endeavour. The cost of the course and the institution offering it matter as much as the skills that each course offers, the opportunities for practical training or industry placements, the network of friends and associates that one can cultivate during the course and keep all their lives through friendships and alumni network and how employers view the graduates of any program as potential employees or the opportunities offered for entrepreneurship.

Following the exit of the United Kingdom from the European Union at the end of 2020, residents of the United Kingdom (as well as the Republic of Ireland) will be eligible for student finance from the UK Government using a postgraduate loan. The amounts offered, the courses and universities eligible differ in each of England, Wales, Scotland and Northern Ireland and the fees and funding pages. Dedicated student finance platforms like Lendwise look at a large number of data points to decide on granting a postgraduate loan that can assist a student if the government loan is not enough to cover the cost of studies. Previous credit history, education, employment, employment prospects and salary expectations are some of the key areas that are assessed to ensure that the any loan is affordable and will be affordable by a student and become a helping force in their lives and not a burden.

Postgraduate loans in England and Wales are not paid directly to the Universities, as the practice is with undergraduate student loans but are paid directly to the student’s bank account in three equal instalments. The student then has to pay the university tuition fees. If the tuition fees are lower than the postgraduate loan the students can use the remainder funds for their maintenance and living expenses during the course. If the tuition fees are higher than the postgraduate loan amount (as is usually the case) the student is responsible for the remainder amount and this is usually funded through savings, parental contribution, earning while studying or dedicated student finance platforms like Lendwise. In England for courses that started after the 1st of August of 2022 the postgraduate loan amount is £11,836 and is paid in three instalments to the student’s account. Practically, when dedicated student finance platforms are used, they settle part or all of the tuition fees directly with the university finance office and the students use the government postgraduate loan to finance their maintenance and living expenses as for most individuals there is no maintenance loan from government similar to the undergraduate student loan.

Repayments for a postgraduate loan do no start until after graduation and until earnings have reached a certain threshold published by the government. When earnings rise above the threshold a set percentage of ones salary is deducted by the employer to go towards repayment of the loan. This repayment amount does not increase if the student has undergraduate student loans or will take a doctorate loan later. Depending on the student finance agency (Student Finance England, Student Finance Wales, Student Awards Agency Scotland (SAAS) , Student Finance NI) after the age of retirement or a number of years after the loan is taken the remainder amount is written off. It should be also noted that student loans are not reported to credit rating agencies and do not appear on your credit report.

In the case of private postgraduate student loans if the course is full time and the student is not working it is usually expected that repayments will start after the end of the course and with an additional grace window to allow for finding employment and settling down into professional life. In the case of part time courses, short courses, bootcamps and remote courses it is usually expected that repayments start one month after the start of the loan. This practice is beneficial to the students as they do not incur interest for a longer time and over a larger loan balance.

Currently for the postgraduate loan the interest rate is 5.4% per annum. This changes every September and is pegged to the Retail Price Index (RPI), which measures inflation in the United Kingdom, plus 3%. For private postgraduate loans the interest rates vary by provider and for each individual depending on their circumstances. Lendwise aims to provide lowest possible interest rate that can be achieved from Lenders on its platform and if the calculated rate is too high or unattainable to be affordable to the student then a loan proposal will not be presented. Currently loans on the Lendwise platform have been funded at rates between 7% and 12%.

To see if one is eligible for a postgraduate loan in England they should apply to Student Finance England. Application usually open in March for courses starting in September onwards and one can apply until the 9 months after the start of the last year of their course. It is however strongly recommended for anyone aiming to pursue a postgraduate course to begin their budget early and confirm their financing sources as early as possible. The Lendwise loan application form providers a budget calculator that allows the student to enter their budgeted expenses and sources of funding and see whether and how much they need for a university postgraduate course. For more information and detail on eligibility criteria for Student Finance England the Lendwise Postgraduate Student Loan Almanac has gathered a lot of information useful to the student.

To see if one is eligible for a postgraduate loan in Scotland they should apply to Student Awards Agency Scotland (SAAS). Application usually open in March for courses starting in September onwards and one can apply until the 9 months after the start of the last year of their course. It is however strongly recommended for anyone aiming to pursue a postgraduate course to begin their budget early and confirm their financing sources as early as possible. The Lendwise loan application form providers a budget calculator that allows the student to enter their budgeted expenses and sources of funding and see whether and how much they need for a university postgraduate course. For more information and detail on eligibility criteria for Student Awards Agency Scotland (SAAS) the Lendwise Postgraduate Student Loan Almanac has gathered a lot of information useful to the student.

To see if one is eligible for a postgraduate loan in Wales they should apply to Student Finance Wales. Application usually open in March for courses starting in September onwards and one can apply until the 9 months after the start of the last year of their course. It is however strongly recommended for anyone aiming to pursue a postgraduate course to begin their budget early and confirm their financing sources as early as possible. The Lendwise loan application form providers a budget calculator that allows the student to enter their budgeted expenses and sources of funding and see whether and how much they need for a university postgraduate course. For more information and detail on eligibility criteria for Student Finance Wales the Lendwise Postgraduate Student Loan Almanac has gathered a lot of information useful to the student.

To see if one is eligible for a postgraduate loan in Northern Ireland they should apply to Student Finance Northern Ireland (Student Finance NI). Application usually open in March for courses starting in September onwards and one can apply until the 9 months after the start of the last year of their course. It is however strongly recommended for anyone aiming to pursue a postgraduate course to begin their budget early and confirm their financing sources as early as possible. The Lendwise loan application form providers a budget calculator that allows the student to enter their budgeted expenses and sources of funding and see whether and how much they need for a university postgraduate course. For more information and detail on eligibility criteria for Student Finance Northern Ireland (Student Finance NI) the Lendwise Postgraduate Student Loan Almanac has gathered a lot of information useful to the student.

Regarding the government postgraduate student loan no guarantor is required and the loan and amount is not means tested or subject to a student’s credit record nor reported in it. Some private lenders may require a guarantor. Lendwise loans do not require a guarantor.

The postgraduate loan amount one can get depends if they are resident in England, Scotland, Wales or Northern Ireland and where they will study.

In England, Student Finance England can provide up to £11,836 if your course starts on or after 1st August 2022.

In Scotland, Student Awards Agency Scotland may offer up to £7000 towards tuition fees for public universities. Students are eligible for funding of courses in the rest of the United Kingdom as long as the same course is not available in Scotland. SAAS postgraduate loans also funds full time postgraduate diplomas that have a study period of one year or less. Students that meet the residency requirement of SAAS may also be eligible for a maintenance loan of up to £4,500.

In Wales, Student Finance Wales allows a maximum of £18,430 which is made up of a loan and a grant (a maximum grant of £6,885 and loan of £11,545 if your household income is £18,370 and below OR a grant of £1,000 and loan of £17,430 if your household income is not taken into account or is above £59,200).

In Northern Ireland, the maximum loan amount offered by Student Finance Northern Ireland (Student Finance NI) is £5,500 for a tuition fee loan and under specific circumstances for a extra help in the form of an allowance that is non repayable for costs related to a disability or long term health condition. Residents of Northern Ireland can use their tuition fee loan for certain postgraduate diplomas or certificates.

Student Finance England and Student Finance Wales offer loans for Masters level courses and not for postgraduate diplomas or postgraduate certificates.

Student Finance Northern Ireland offers its tuition fee loan for Postgraduate Master’s, Postgraduate Certificate (PgCert), Postgraduate Diploma (PgDip) which can be studies in university attendance or remotely through distance learning and be research based or taught and can be studies part time or full time but must not last longer than three academic years.

Student Award Agency Scotland (SAAS) offers support for Postgraduate Diplomas but not Postgraduate Certificate courses.

The Graduate Diploma in Law (GDL) is a postgraduate diploma that allows graduates or professionals without a qualifying law degree to gain the necessary knowledge and skills to progress and be eligible for embarking in a Legal Practice Course (LPC) to become a solicitor or a Bar Practice Course (BPC or previously known as the Bar Professional Training Course (BPTC)) to become a barrister. Students with a non-legal education background are also attracted to such courses as they give a good legal education that is a good to have skill in many industries and professions. Some GDL courses are structured as integrated masters courses and thus are eligible as any other Masters courses for a government postgraduate course. Other students opt for a non integrated masters for the GDL and undertake an integrate masters with their LPC known as the LLM which is again eligible for student finance if it is the first professional qualification. Dedicated student finance platforms such as Lendwise provide private postgraduate loans for the GDL, LPC and BPC.

Part time masters courses are usually eligible for student finance under the government postgraduate loan scheme. There may be some eligibility restrictions depending on the time required for completion of the course and the loan is disbursed in instalments that span the length of the course.

MBA courses are usually eligible for student finance under the government postgraduate loan scheme. Due to their appeal, competition for places and expected boost in employability and earnings the most prominent attract a high number of applications both from the UK and from overseas students. A global student body is a lot of times a major factor in the decision of the students to select a specific business school or course. As the fees are usually quite high in comparison to other postgraduate courses and some courses are 15 or 24 months in duration the government postgraduate loan is not sufficient to cover the tuition fees and / or living expenses and dedicated student finance platforms like Lendwise offer loans that bridge the funding gap.

Distance Learning masters courses are usually eligible for student finance under the government postgraduate loan scheme. There may be some eligibility restrictions depending on the time required for completion of the course and the loan is disbursed in instalments that span the length of the course.

Bootcamps are quite a new form of postgraduate course that aim within a short period of time to teach practical skills that can allow an individual to reskill or upskill. There are usually no set prerequisites as each company or training provider makes its own selection and their duration, course content, tuition fee and mode of attendance are set by the training provider. Bootcamp courses are usually not eligible for student finance through the government postgraduate loan but some may be eligible through the apprenticeship scheme. Dedicated student finance platforms such as Lendwise offer:

• Postgraduate Loans for Bootcamps
• Other Professional Qualifications