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Postgraduate Loan for masters study- worth it?

The government offers a loan of up to £10,000 for postgraduate study.

But the repayment rate is 15%

This seems crazy to me. With other expenses I will have hardly anything left. Or am I wrong? Advice please....
Reply 1
Avatar for Klix88
Klix88
17
Original post by mouse81321
The government offers a loan of up to £10,000 for postgraduate study.

But the repayment rate is 15%

This seems crazy to me. With other expenses I will have hardly anything left. Or am I wrong? Advice please....

I can't see 15% mentioned on the government website:
https://www.gov.uk/postgraduate-loan/repayment
Reply 2
Avatar for mouse81321
mouse81321
OP
Original post by Klix88
I can't see 15% mentioned on the government website:
https://www.gov.uk/postgraduate-loan/repayment


undergraduate repayments (9%) + postgraduate (6%)
Reply 3
Avatar for Klix88
Klix88
17
Original post by mouse81321
undergraduate repayments (9%) + postgraduate (6%)

You didn't specify that you were including the undergrad loan.

But I think you've slightly misundrstood the way the SF repayment system works. You only repay the total 15% from anything you earn over £21,000. So anything you earn under £21,000 will not be affected and you won't have to make any repayments at all if you earn less.

You should never be left with "hardly anything".

An example: If you earn £30,000 a year, the 15% repayment would be levied on £9000 of that (£30,000 minus £21,000). This results in SF repayments totalling £1350 per year (15% of £9000) from your gross £30,000 wage. Obviously income tax, NI, pension payments etc would result in further deductions, but you wouldn't be left destitute.

As to whether a Masters is worth it, that depends on your financial situation, personal goals and why you want/need a Masters.
(edited 7 years ago)

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