Masters Loans and Career Development Loans.

Are you allowed to get a Master loan from the government and also get a CDL?

I was thinking of getting a CDL on top of my Masters loan and putting it into a high interest savings account, and immediately paying it back after I graduate. Can you do this and is there any disadvantage that I've missed?

Thanks :smile:

Reply 1

Klix88

Original post by _Bright Eyes

The CDL is only available for courses which have no other source of funding. If your Masters coure is eligible for the Postgraduate Loan then you cannot get a CDL as well, even if you choose not to take the Postgraduate Loan. One of the reasons Barclays has stopped offering the CDL, is that the new Postgraduate Loan will remove a large chunk of their potential customer base.

The disadvantage of any savings-from-loans plan these days, is that you're likely to be charged more interest than you're getting paid. The gamble is that the situation won't get worse whilst you have the money - probably not a safe bet these days. There are other factors, such the the one remaining CDL (from the Co-Op Bank) carrying a potential early repayment charge..That could wipe out any gain.

Reply 2

_Bright Eyes

Original post by Klix88

Thank you for such an informative reply, it's exactly what I needed.

Reply 3

99_Problems

Original post by _Bright Eyes

Thank you for such an informative reply, it's exactly what I needed.

The National Careers Service and the Student Loans company told me it is possible and that the "only courses that aren't funded" eligibility requirement was written before postgraduate loans existed and was trying to say it was not possible for undergraduate degrees which are completely funded. But postgraduate loans are not "funded" £10,000 doesn't even cover tuition in some places so I would phone the bank and check but the Student Loan company said on their end it's fine.

Reply 4

_Bright Eyes

Original post by 99_Problems

Thanks!

Do you have the same plan? If so, found any good high interest accounts?

Reply 5

Saliency

I asked Barclays (managed to get int here before they stopped doing their loans), and they said it was fine to have the SFE Postgraduate loan and their loan.

Reply 6

Klix88

Current basics:
http://www.co-operativebank.co.uk/loans/career-development-loan#important-information

To apply, you need to be:
- Between 18 and 69 years of age.
- A UK citizen.
- Not subject to any County Court Judgments (CCJs), been declared bankrupt or defaulted on any credit agreement in the last 6 years.
- Planning to work in the UK, European Union (EU) or European Economic Area (EEA) after the course.
- Unable to finance the course yourself with reasonable or adequate access to funds.

Your course must:
- Start within 8 weeks from the date of your application.
- Only last up to 2 years, or 3 years if it includes 1 year of work experience.
- Be provided by an organisation on the Professional and Career Development Loan Register - check with your course provider.
- Help with your career - however, it doesn’t need to lead to a qualification.

The first highlighted statement appears to allow wiggle room for Masters funding alongside a PCDL. However that may be a matter of interpretation, depending on how much Postgraduate Loan you get and how that compares with your tuition fee + living costs. Hopefully we should have clarification as more Masters students with SF funding apply over the coming weeks. The 8 week window is quite tight.

The second highlighted statement is probably key. Whatever you do, don't tell the bank that you are just doing the Masters for the interest. It must be vocational and aimed at either helping you into a career or to develop in your current career.