A birds-eye view quickly reveals the inadequacy and complexity of UK postgraduate student finance, as four systems operate (and awkwardly overlap) in a world of high tuition fees and rising living costs.
As practitioners, we have a much more ground level perspective: seeing how students struggle through these systems in practice and witnessing the winners and losers who result from a system that should, at least in principle, be equally useful to all.
With the UK’s national funding agencies opening applications for 2025-26, now is the time to update our understanding of postgraduate loan options, and highlight anomalies. Doing so reminds us to spot the obstacles students may not see: the metaphorical potholes that can quite literally slow a student’s progress or stop them progressing at all.
It also helps us ask whether some of these obstacles really need to be there.
When moving to study reduces the amount you can borrow
One major factor that prospective students often overlook is how changing their country of residence affects their eligibility for future funding – and how this can happen without them realising.
Take this real-world example:
- A student from England completed their bachelors and masters’ in Scotland
- As many students do, they supplemented their Student Finance England (SFE) Masters loan with part-time work (at their university)
- They chose to continue to a PhD, having found a supervisor and a place
- However, their residency had been updated from England to Scotland… meaning they are no longer eligible for a SFE doctoral loan (despite having already received its UG and PGT support)
- Because Student Awards Agency Scotland (SAAS) doesn’t offer doctoral loan, they were left in postgraduate funding limbo
Whilst moving to study doesn’t affect residency status, moving to work does. This prevents people who have moved permanently to work from picking a preferred loan based on their address history. But it introduces perverse pitfalls that potentially incentivise against study mobility. And in some cases, like this one, it could hamper the chances of students from less affluent backgrounds – those who need to work while studying – from progressing to doctoral study.
The easy solution here would be for each funding organisation to ensure that work during study doesn’t impact residency.
When you better get it right first time
Most of the PG loan systems restrict finance for candidates with equivalent or higher qualifications.
Again, the design is fair in principle, but confusing in practice. Do students readily understand the difference between holding a postgraduate masters, an undergraduate integrated masters or a conferred “Oxbridge MA”?
And is the principle actually practical? To take a slightly hypothetical example:
Mark has an MA in Gothic Studies (yes, really). He paid for this himself almost 20 years ago (again – yes, really). He now wants to take an MSc in Data Analytics to support his work analysing prospective PG audience shifts at scale. A master’s loan would help him do so, but he can’t get one. Because he has a self-funded MA in Gothic Studies from 20 years ago.
In an age of upskilling and reskilling, it’s worth asking if this is really what we want for the UK economy. And no, the LLE won’t help either.
Should we allow access to the PG loan for courses in priority subjects, and/or where student finance hasn’t previously been awarded? It’s a conversation worth having, but there are no signs that the issue is top of anyone’s list of priorities.
When the postgraduate student finance system penalises you for being… a postgraduate
Postgraduate students are, by definition, older than undergraduates. As such, they’re also more likely to have children (or, indeed, other caring responsibilities).
A childcare grant is offered in England to help support student-parents, but eligibility explicitly excludes anyone not receiving undergraduate student finance or receiving a postgraduate loan. This feels like a fairly difficult needle for a masters student to thread and a clear blocker to seeing more of the UK workforce taking advantage of postgraduate-level training (something Mark has drawn attention to before).
Perhaps it is time to extend the existing Childcare Grant to postgraduates on similar age and earnings criteria.
When you could borrow less but pay nothing back
A more outlandish example, but one that also speaks to the unintended consequences of having multiple loan funding systems.
Meet Ewan and Evan, two 59 year-olds, financially independent and planning to retire at 60. Both have enrolled on the same MSc History (Online, Part-time, 2 years) at The University of Edinburgh, starting September 2025 with a course fee of £17,100. Here’s where things differ:
- Ewan is Scottish-resident and eligible for a SAAS loan of £7,000 which is paid directly to the university. He needs to find another £10,100 to cover the fees.
- Evan, a Welsh-resident can access a SFW loan of up to £19,255, paid directly to him. After paying the course fees, he may have up to £2,155 remaining
The likelihood is that neither will fully repay their loan given their age and the repayment thresholds. But whereas Ewan has had to find extra money, Evan has studied a masters “for free.
While there’s no simple fix, it’s crucial that funding agencies continue to provide clarity on terms, conditions and eligibility criteria. Universities should also signpost where to find this definitive information and ideally clarify the difference in funding arrangements to help prospective students better understand their options.
The importance of professional guidance
Exploring the nuances of the loan system in this way may feel somewhat obscure, but it allows us to better understand the genuine confusion and frustration that prospective students often feel when navigating the complexities of postgraduate funding, particularly UK postgraduate loans.
As professionals in the postgraduate space, our aim is not to encourage manipulation of the system, but we do need to understand how its unintended quirks can misdirect students and be ready to guide them when that occurs.
We also need to stay updated on loan policies and repayment thresholds. That way, we can help students make informed decisions.
The more we understand the nuances of postgraduate funding, the better equipped we all are to support students in their academic journeys.
