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Postgraduate loans 2016/2017 starters

edited 18 March 2016 at 4:48PM in Student Money Saving
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  • Ed-1Ed-1 Forumite
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    Hello I completed a masters from September 2014 to September 2015. I took out a career development loan for the masters and have documents that prove that's where the money has gone to. Is it possible to move this debt into a student finance loan?
    if you took out a career development loan for a masters are you able to convert it into a student finance postgraduate loan?

    No, postgraduate master's loans are only for new students starting courses from 2016/17 onwards.
  • Zobo127Zobo127 Forumite
    1 posts
    Hi,

    I am new to this forum thing, but just a few questions....
    This bit -
    This must be your only funding: If you're able to apply for a bursary instead, eg,a healthcare bursary from the NHS, a social work bursary from the Department of Health, Social Services and Public Safety (DHSSPS) or a bursary from Student Awards Agency Scotland (SAAS), you won't be eligible for the postgraduate loan.

    I thought the social wok bursary was not guaranteed for all social work courses....and was only available with some university courses. So where It states "if you are able to apply" does that mean that because there are some courses/universities that are HCPC accredited as so could apply for a bursary; I woyld not be eligible to apply for the loan?
    Also am I able to apply if it's for an employment based course?

    Sorry for all the questions?
    Hope you can help?
  • I have taken some post graduate modules with the Open University but have not completed a Masters. I have paid for these myself. I am registered with OU for working towards a masters.

    The information on the gov website is rather tenuous as it says it depends if you have studied on a post grad course before then you are not eligible if you already have a masters degree or equivalent.

    If I were to apply for a masters at a regular university would I be able to get a post grad loan as I don't actually have a post grad qualification. In which case I would not finish the OU qualification and do a taught masters at a standard university.
  • surfsistersurfsister Forumite
    7.5K posts
    I've been Money Tipped!
    The Government is indeed 'Omnicompetent' in its ability to breach regulations and laws that a private provider could not.


    Age is a protected characteristic. So denying anyone over 60 student funding for postgraduate study should be as unacceptable as denying access because of other protected characteristics - disability, gender, etc. etc.


    Is there anyone out there willing to challenge this? I write as someone prevented from funded retirement because of changes to retirement age; with the 'right' to work forever (despite having worked since 16 years old).

    Yes totally agree as most people now have to work to 67/8 or longer to get their pension why should the loan stop at 60. Surely it's ageist?

    Could we start a petition or similar??
  • Ed-1Ed-1 Forumite
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    surfsister wrote: »
    Yes totally agree as most people now have to work to 67/8 or longer to get their pension why should the loan stop at 60. Surely it's ageist?

    Could we start a petition or similar??

    It's generous as it is. Any higher than age 60 and they'd be effectively giving you a grant and no-one would earn enough to pay it back (it's perfectly legitimate for income-contingent finance to restrict accessibility on age criteria).
  • surfsistersurfsister Forumite
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    I've been Money Tipped!
    whatever the ins and out it's definitely ageist!! the BA loan had to be changed as it was ageist. This is just the same.

    60 is no longer retirement age anyway it's 67 for many people now!!!
  • Ed-1Ed-1 Forumite
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    surfsister wrote: »
    whatever the ins and out it's definitely ageist!! the BA loan had to be changed as it was ageist. This is just the same.

    60 is no longer retirement age anyway it's 67 for many people now!!!

    This loan is designed to be paid back on income-contingent terms over 30 years. I don't think the prospect of the SLC dealing with the over 90s appealed very much...
  • YopYop Forumite
    1 posts
    I hope someone can help me with a few questions I had regarding the postgraduate loan. I have tried to contact student finance in writing but have had no response, and I cannot seem to find any clear answers anywhere on the online materials.

    First a brief explanation of my situation. I am taking out the full £10, 000 postgraduate loan to start a masters course in October 2016. I also currently have an undergraduate student debt. I started my undergraduate course before 2012, so the interest rate on this is currently set at RPI (subject to repayment plan 1). Once I have taken the postgraduate loan, I will have an additional £10, 000 debt which increases at a rate of RPI +3%. My queries are:

    1) Will taking out the postgraduate loan have any effect on the undergraduate debt I currently have. Specifically, as explained above my undergraduate debt is subject to plan 1 (has a lower level of interest). Will taking out a postgraduate loan increase the interest rate of my existing undergraduate loan (from RPI to RPI + 3%)? Or will my undergraduate loan remain as it is (i.e. increase just by RPI each year)?

    2) It would make more financial sense for me to try to clear the higher interest loan (postgraduate) before the other (undergraduate). If I wanted to make voluntary repayments once I start earning, would it be possible to specifically make these to the postgraduate loan, or will voluntary repayments have to be split between the two debts? For example if I wanted to repay a lump sum of £1000, would it be possible to direct this solely to my postgraduate debt, or would it have to be divided between this and the debt I already hold from my undergraduate loan. As an aside, if voluntary repayments did have to be split between the two debts, how would this be done: 50/50, or proportionally based on the size of each debt relative to my total debt?

    3) Finally, do you have any tips on how someone in my situation should best go about repayment. I anticipate I will clear the postgraduate debt within 30 years, and this is going to be gathering interest: so my current plan is to try to clear that one as quickly as is reasonably possible with voluntary repayments, and leave the undergraduate one as it is (minus compulsory repayments).

    Thanks very much in advance.

    Yop
  • silvercarsilvercar Forumite, Board Guide
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    1. Your plan 1 loan remains unchanged.

    2. I don't know for sure, but I would have thought that voluntary repayments be directed where you want, given they are voluntary.

    3. Save and use your savings to clear the debt? Remember that this is not like any other debt in that it doesn't appear on your credit rating, is not repaid if you don't earn enough, eventually gets wiped etc
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  • edited 17 August 2016 at 11:58AM
    Ed-1Ed-1 Forumite
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    edited 17 August 2016 at 11:58AM
    Yop wrote: »
    1) Will taking out the postgraduate loan have any effect on the undergraduate debt I currently have. Specifically, as explained above my undergraduate debt is subject to plan 1 (has a lower level of interest). Will taking out a postgraduate loan increase the interest rate of my existing undergraduate loan (from RPI to RPI + 3%)? Or will my undergraduate loan remain as it is (i.e. increase just by RPI each year)?

    No, they are separate loan balances with different terms of repayment.
    Yop wrote: »
    2) It would make more financial sense for me to try to clear the higher interest loan (postgraduate) before the other (undergraduate). If I wanted to make voluntary repayments once I start earning, would it be possible to specifically make these to the postgraduate loan, or will voluntary repayments have to be split between the two debts? For example if I wanted to repay a lump sum of £1000, would it be possible to direct this solely to my postgraduate debt, or would it have to be divided between this and the debt I already hold from my undergraduate loan. As an aside, if voluntary repayments did have to be split between the two debts, how would this be done: 50/50, or proportionally based on the size of each debt relative to my total debt?

    You're going to be making repayments for undergraduate and postgraduate loans together anyway so it's not a question of which gets paid first. 9% of income above the plan 1 threshold (£17,775 from April 2017) goes to your undergraduate loan and a further 6% of your income above £21,000 goes to your postgraduate loan (postgraduate loans don't enter repayment until April 2019 at the earliest so no deductions will be made before then).

    You can ask SLC to put any voluntary repayment towards paying off your postgraduate loan (I don't know whether doing this online has this option so you might have to ring them to do it).
    Yop wrote: »
    3) Finally, do you have any tips on how someone in my situation should best go about repayment. I anticipate I will clear the postgraduate debt within 30 years, and this is going to be gathering interest: so my current plan is to try to clear that one as quickly as is reasonably possible with voluntary repayments, and leave the undergraduate one as it is (minus compulsory repayments).

    Bear in mind that borrowing on income-contingent terms is the best form of borrowing you will ever have access to so think carefully before making any voluntary repayments. Only make voluntary repayments if you're certain that you will repay the postgraduate loan in full within 30 years from April 2019 and won't need to borrow on commercial terms in future.

    Otherwise, treat both loans together as an extra 15% tax.
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