Adam Wright, Research and Policy Officer from the NUS, and expert on all things postgraduate, brings us up to date on the recent announcement about postgraduate student loans for entry in 2016, and explains what we know and what is yet to be confirmed:
In the Chancellor’s autumn statement in December 2014, it was announced that a postgraduate loan scheme will be implemented for English-domiciled students and EU students studying in English institutions from 2016-17.
The scheme will offer students up to £10,000 to help with the costs of studying a masters degree. Students are eligible for the loans if they are under the age of 30 and are studying for a full-time masters, or part-time at 50% intensity or above. There are no subject restrictions.
The finer points of the scheme have not yet been finalised, but the scheme will be income-contingent meaning that, like undergraduate loans, graduates will only pay them back if they earn over a certain amount. The repayment threshold will likely be the same as undergraduate loans (£21,000), and students are likely to have to repay at a rate of 9% of income above the threshold.
We also know that the government’s preferred loan model is to charge an interest rate of RPI+3% on all loans. However, unlike undergraduate loans where the interest rate is tapered according to income (from RPI at £21,000 to RPI+3% at £41,000 and above), it is expected that all students will have to pay RPI+3% regardless of their income.
Although the scheme is for England only, there are discussions in Wales and Northern Ireland as to whether to implement a similar scheme. Scotland has some different schemes for funding some postgraduate study.
There will be a consultation starting in February 2015 where NUS and students’ unions will be lobbying for the removal of the age cap, as well as looking into more favourable terms and conditions and controls on fee inflation.