Postgraduate students aged under 30 will for the first time be able to apply for a student loan of up to £10,000 per course from 2016-17.

This is expected to help around 40,000 postgraduate students, says the Treasury.

Unlike undergraduate students, postgraduate students aren't currently eligible for a Government-backed student loan. So unless they are awarded a bursary, scholarship, or a grant they will have to fund their studies themselves.

While the maximum you can get per course is £10,000, the amount you'll be able to borrow depends on how much you earn when you first apply for your loan. Most courses last one year, but some are two, so the cash may have to spread between years.

The exact details of how the loan will work haven't yet been confirmed, but it's understood postgraduates could expect a similar loan repayment system to current undergraduate students. As such, postgraduates could be charged interest at RPI plus 3%, and repay 9% of what they borrowed once they're earning over £21,000.

It is unclear if the loan cash will go into a person's current account or go straight to the university to pay the fee and it's still being decided whether or not you'll be able to apply for the loan if you're mid-way through your course when the initiative begins. The Government will also consult on whether students aged 30 will also be able to apply.

Martin Lewis
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