MSE News: Postgrads will be able to apply for loan of up to £10,000: Autumn Statement

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Postgraduate students aged under 30-years-old will for the first time be able to apply for a student loan...
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Postgrads will be able to apply for loan of up to £10,000: Autumn Statement 2014

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  • charlie-chan
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    This is a good idea but it is a shame that I will be at the age of 30 when it finally starts :(
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  • ericctheking
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    All well and good until the loans are sold off to some seriously dodgy company and you find yourself in a world of pain.
    Remember the plan is to sell of the entire student loan book.
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    I know this is a money saving site, but ignoring the money element.

    In terms of places on courses, post grad courses for 2015-16 will now see a reduced number of applicants as many will wait a year and apply to take advantage of the loans on offer.

    Most undergraduate courses are 3 years long. wind back 3 years and the students applying for post grad in 2015-16 are the same who applied as undergrads in 2012-13, the first year of higher fees. There was a lower application level that year because very few took a year out in 2011-12, so there were very few post gap year students looking for places in 2012-13.

    Less competition - easier entry to courses. Again.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
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    silvercar wrote: »
    I know this is a money saving site, but ignoring the money element.

    In terms of places on courses, post grad courses for 2015-16 will now see a reduced number of applicants as many will wait a year and apply to take advantage of the loans on offer.

    Most undergraduate courses are 3 years long. wind back 3 years and the students applying for post grad in 2015-16 are the same who applied as undergrads in 2012-13, the first year of higher fees. There was a lower application level that year because very few took a year out in 2011-12, so there were very few post gap year students looking for places in 2012-13.

    Less competition - easier entry to courses. Again.

    As a 'stop-gap' until the loans are in place, the government has redesignated £50million from the National Scholarship Programme as postgraduate bursaries each worth £10000 for 2015-16 which are matched by the HEIs so £100million worth of scholarships of £10000 each are available next year.
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    Ed-1 wrote: »
    As a 'stop-gap' until the loans are in place, the government has redesignated £50million from the National Scholarship Programme as postgraduate bursaries each worth £10000 for 2015-16 which are matched by the HEIs so £100million worth of scholarships of £10000 each are available next year.

    Will you know on application if you will be lucky enough to get one?
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
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    silvercar wrote: »
    Will you know on application if you will be lucky enough to get one?

    You'll have to apply to the university for a scholarship and it will be up to them to set the criteria upon which they will award one (within suggested HEFCE criteria) and they will decide who gets one.

    More info here: http://www.hefce.ac.uk/pubs/year/2014/cl322014/name,99146,en.html

    See Annex A for the minimum number of scholarships each institution will offer.
  • Bravo_Zulu
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    What's the interest rate on the loans and will they be treated the same as student loans ie not shown on credit files and pay back being linked to earnings?
    Debt Free 03 Dec 2014/£25k repaid
    Mortgage: Dec 2014: £98,392.77. Jan 2018: £78,000. Nov 2018: £74,736. July 2019: 70,000

    *Life is what happens when you're busy making other plans*
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
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    edited 19 December 2014 at 5:20PM
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    Bravo_Zulu wrote: »
    What's the interest rate on the loans and will they be treated the same as student loans ie not shown on credit files and pay back being linked to earnings?

    All we know so far is that they will definitely be income contingent (i.e. repayments will be taken as a portion of your salary). The terms have yet to be finalised and a public consultation will be launched early in the new year to inform final decisions. There is a hint as to how the government is thinking. They have suggested that one way it could work is repayment being concurrent with any undergraduate loan repayments (i.e. repayments would be made in addition to undergraduate loan repayments) at the same rate of 9% above the threshold of £21000 which would be frozen for 5 years, while interest could be charged at RPI+3% (as opposed to between RPI and RPI+3% with undergraduate loans) which would beat commercial rates.

    http://www.theyworkforyou.com/wrans/?id=2014-12-16a.65.3

    I'm guessing that one of the concerns raised in the consultation will be that taking 9% of earnings twice for student loan repayments creates a rather high marginal tax rate on top of income tax and National Insurance contributions. The government are likely to argue that the threshold is relatively high so it only effects those earning enough to afford it.
  • silvercar
    silvercar Posts: 46,960 Ambassador
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    So applying for 2016 and you know you could get £10,000 student loan, applying for 2015 and you may get an allocation depending on how your institution allocates.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
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    silvercar wrote: »
    So applying for 2016 and you know you could get £10,000 student loan, applying for 2015 and you may get an allocation depending on how your institution allocates.

    Yes that's right.
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