FUNDED Durham University NEFirst Postgraduate Loan Scheme

For Full-Time, Durham University, UK self-financing students, we are delighted to be able to offer an opportunity to apply for a Postgraduate Tuition Fee Loan of up to £7,000, to cover the cost of tuition fees. (The standard loan scheme is designed for full time students who will complete their postgraduate course within one year, but applications from part-time students are welcomed and will be considered.)

If the Postgraduate Tuition Fee Loan is agreed, the tuition fees will automatically be paid by NEFirst directly to Durham University.

To apply for this loan you must have already applied to the University for a place on the course you are interested in studying and received either a conditional or unconditional offer letter. You will need your Banner ID to apply for the loan.

You MUST complete a Membership Application form as well as a Loan Application and send it to durham@nefirstcu.co.uk together with your programme offer letter.


Link to durham postgraduate application:
postgraduate application:


NEFirst Student Membership Application

NEFirst Student Online Loan Application

NEFirst Student Standing Order

Guarantor’s Agreement Form


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Financial Details

Financial Details

  1. The finance cost will be at an annual rate of interest of between 6.2% and 9.4% depending upon the outcomes of the Experian credit score.2. The maximum loan value will be seven thousand pounds (£7,000) to cover tuition fees.3. All loans will be on a twelve (12) month deferred payment schedule.

Example:

  • £7,000 loan granted on 1st January 2015
  • First repayment instalment due 1st January 2016
  • Term 4 years (following first instalment} at a fixed rate of APR 9.4%
  • Monthly instalments- £163.98
  • Interest during deferred period 0.00% APR
  • Total amount repayable £8274.96

Applicants may wish to include a guarantor as part of their application in a bid to reduce the interest rate.  A guarantor would be a UK based parent or guardian that owns their own property, has outstanding equity on the property and is not subject to any existing garnishee order. There would be no charge made over the property. The guarantor will however become liable for the loan in the event of non-payment by the borrower which may lead to charging orders in the event of recover

Questions and Answers

Questions and Answers

When do I apply for my loan?

Applicants should apply first to the University for a place on the course they are interested in studying. Once an applicant is made an offer of a place, the University will provide a link to the NEFirst application form to those students who are interested in applying for the loan.

Do I contact NEFirst to arrange my loan first or should I apply for my course first? 

Applicants should apply for your course with Durham University first. Upon receipt of an offer an applicant will also receive a link to NEFirst’s PG Loan application form.

Where do I find costs for courses?

Applicants can find the tuition fees for most of Durham’s courses through the University’s website.  If the fees are not available online please email Admissions for further details pg.admissions@durham.ac.uk

What are the eligibility criteria for the loans?

Applicants interested in studying on full-time* postgraduate taught programmes at Durham University can apply for the loan. The scheme is available to all UK residents with a UK bank account, regardless of their undergraduate institution.   However, NEFirst is bound by a ‘common bond’ requirement, meaning applicants must be living or working/studying within Durham. International (including EU) applicants are currently outside of the arrangement. Applicants must be self-funding and not having their fees paid by a professional body, for example, the NHS. (*The standard loan scheme is designed for full time students who will complete their postgraduate course within one year, but applications from part-time students will be welcomed and considered.)

What are the interest rates?

The maximum loan value will be seven thousand pounds (£7,000) to cover tuition fees. The finance cost will be at an annual rate of interest of between 6.2% and 9.4% depending upon the outcomes of the Experian credit score.

Applicants may wish to include a guarantor as part of their application in a bid to reduce the interest rate. A guarantor would be parent or guardian that owns their own property, has outstanding equity on the property and is not subject to any existing garnishee order.

There would be no charge made over the property. The guarantor will however become liable for the laon in the event of non-payment by the borrower which may lead to charging orders in the event of recovery. The interest rate for a loan supported by a UK based guarantor will be 0.5% (6.2% APR).

How long will I have to wait to hear if I can get a loan?

Interested applicants who are made an offer by the University will be referred to NEFirst for their standard loan application process.  NEFirst will make a data request from Experian as part of the credit risk profiling and will communicate the outcome to both the student and University usually within five working days.

What happens if I don’t qualify for a loan?

Any applicants who are not eligible for this scheme are still be eligible to spread the cost of their tuition fees, interest free, paying in instalments by Direct Debit, in line with University policy. Full details can be found here.

If I drop out of my course what will I have to pay?

Should a student withdraw from their programme, NEFirst will be advised by the University and the deferred repayment period will end, that is, the loan will become immediately repayable on a monthly instalment basis.

Are there any courses I can’t get a loan for?

The scheme is available to applicants applying for full-time postgraduate taught programmes. Applicants must be self-funding and not having their fees paid by a professional body, for example, the NHS.

Will the loan affect my credit rating?

The loan offered is a commercial product and will therefore be logged on the applicant’s credit file.

What happens if course fees for the course I want to do are more than the loan?

The maximum loan facility available is £7,000. If the fee is higher than £7,000, the full amount of the loan will be paid direct to the University. The applicant will also be required to pay any additional balance direct to the University.

Is there a penalty if I repay the loan before the repayment period starts?

All loans will be subject to a minimum charge which is equivalent to a full year’s interest at the standard interest rate. (For example a loan of £7,000 will be subject to a minimum charge of £658).

I don’t live in the North East at the moment but I will be moving there when my course starts. Can I apply for the loan now even though I don’t have an eligible postcode at the moment?

Under NEFirst’ s common bond qualification all full-time students of Durham University qualify so once an applicant is enrolled onto their course they automatically qualify to apply for a loan. Any UK resident who receives an offer can therefore apply for a loan via NEFirst and payments will be made to the University and the applicant as per the agreed schedule.

How is the Durham loan different to what the Government are offering?

The Durham University loan is available to all full-time eligible students who will be studying at Durham, regardless of age, and will be available for 2016 entry. The full details of the Government loan are yet to be announced, but it may only be available to students under the age of 30.

Examples of loan repayments

Amount Condition Repayment Interest Rate InitialPayment Monthly payment TotalPayments InterestCharge
£7,000 Bank Four years 9.4% APR £ 173.53 £ 175.53 £8,425.34 £1,425.34
£7,000 NEFirst Year one + four 0.75% per month9.4% APR £ 300.00 £ 163.98 £8,274.96 £1,274.96
£7,000 NEFirst Year one + four 0.50% per month6.2% APR £ 300.00 £ 160.47 £7,834.73 £  834.73
£5,000 Bank Four years 9.4% APR £125.38 £ 125.38 £6,018.10 £1,018.10
£5,000 NEFirst Year one + four 0.75% per month9.4% APR £ 300.00 £ 119.03 £ 5,894.36 £   894.36
£5,000 NEFirst Year one + four 0.50% per month6.2% APR £ 300.00 £ 112.45 £5,585.60 £  585.60
£3,500 Bank Four years 9.4% APR £   87.76 £  87.76 £4,212.67 £  712.67
£3,500 NEFirst Year one + four 0.75% per month9.4% APR £ 300.00 £  81.10 £ 4,108.94 £  608.94
£3,500 NEFirst Year one + four 0.50% per month6.2% APR £ 300.00 £  76.56 £3,898.71 £  398.71
£7,000 Bank Two years 9.4% APR £ 321.08 £ 321.08 £7,705.91 £ 705.91
£7,000 NEFirst Year one + two 0.75% per month9.4% APR £ 300.00 £ 318.25 £7,619.49 £ 619.49
£7,000 NEFirst Year one + two 0.50% per month6.2% APR £ 300.00 £ 409.09 £7,409.37 £ 409.37
£5,000 Bank Two years 9.4% APR £ 229.34 £ 229.34 £5,504.22 £ 504.22
£5,000 NEFirst Year one + two 0.75% per month9.4% APR £ 300.00 £ 223.24 £5,434.59 £ 434.59
£5,000 NEFirst Year one + two 0.50% per month6.2% APR £ 300.00 £216.89 £5,287.16 £ 287.16
£3,500 Bank Two years 9.4% APR £ 160.54 £ 160.54 £3,852.95 £ 352.95
£3,500 NEFirst Year one + two 0.75% per month9.4% APR £ 300.00 £ 152.00 £3,795.88 £ 295.88
£3,500 NEFirst Year one + two 0.50% per month6.2% APR £ 300.00 £ 147.65 £3,695.51 £ 165.51

This table shows the NEFirst charges at 9.4% (on reducing balance) compared to a typical bank repayment at 9.4% (from www.thisismoney.co.uk) for £7000, £5000 and £3500 loans over 5 years and 3 years.

 

Terms and Conditions

Terms and Conditions

  • The loan product offered by NEFirst would be a maximum finance facility of £7,000, which would cover tuition fees which, will be paid directly to the University.
  • The scheme is available to all “UK resident” who “have a UK bank account”. regardless of their undergraduate institution. However, NEFirst is bound by a ‘common bond’ requirement, meaning applicants must be living or working/studying within Durham. Eligible applicants will be sent the link to the application form as part of their offer to study. This application will be the standard NEFirst loan application process. NEFirst will make a data request from Experian as part of the credit risk profiling. Prospective applicants are also invited to include guarantors as part of the application to lower the risk profile, and subsequently the cost of finance to the applicant. NEFirst will communicate the outcome to both the applicant and University usually within five working days.
  • All applicants will become members of the credit union and would be required to save a minimum of £25 per month, by standing order, from the commencement of membership.
  • No interest would be incurred, and no repayment required for the first twelve months following enrolment. Interest will be incurred and the loan will become repayable from month thirteen at a rate dependent upon the applicants credit profile.
  • There is no formal early repayment penalty for credit union loans during the borrowing period but all leans are subject to a minimum repayment.
  • Should a student withdraw from their programme, NEFirst will be advised by the University and the deferred repayment period will end, that is, the loan will become immediately repayable on a monthly instalment basis.
  • Loan applications can only be accepted subject to the availability of finance. Applications will be dealt with on a first come first served basis (subject to meeting the eligibility requirements).