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Posted May 9, 2013

Peer-to-Peer Lending For Postgraduate Funding

The financial difficulties faced by postgraduates is nothing new, however in recent years the issue of funding has become of paramount importance to business sectors who fear that with fees rising and the banks tightening up their lending regulations , we will be faced with a qualification shortage in future years in the highest paid positions within the workplace.
 

There has never been more importance placed on the need for postgraduate qualifications in industry, yet it has never been harder for students to get mainstream funding . The peer-to-peer lending market has seen a resurgence in recent years, and this is now being explored by postgraduates.

Family Lending

The idea of family lending is by no means new, but reports are showing that levels of borrowing from friends and family to fund postgraduate studies are at an all time high. It is not an option for many students, whose close connections simply do not have the funds available, but for others who are able to turn to family and friends for a loan, it can provide a much less stressful and inexpensive way of finding the funds to cover their studies. It is not without its problems however, as there can be a number of complications associated with defaults on the repayments as it can cause friction with loved ones if the terms cannot be met.
 

Peer-to-Peer Loan Companies

The largest increase in peer-to-peer lending actually comes from companies such as Zopra, Funding Circle, and GraduRates, all of whom are creating direct connections between students and private investors who are looking to sponsor postgraduates through their study in return for a profitable repayment. Funding Circle and Zopa operate this model for individuals and small businesses, and it is now being applied to postgraduate studies, whereas GraduRates are offering a postgraduate-tailored service. CEO of GraduRates Jonathon Webb believes that there is a “postgraduate sized gap in the market,” and this is why he is tailoring a service geared towards those who have been unable to secure a Career Development Loan, and are still eager to enrol for a postgraduate course. In 2012 45% of those applying for a CDL were refused, and there are not many other options available to those students.
 

Whilst the model of peer-to-peer lending which is offered by these companies seems like an ideal solution to the funding problem for these students, it is reliant on the investors being there and being willing to put their faith in a return on investment from the individual students. This is something of a sticking point for many, as it is incredibly difficult to work out the repayment terms based on a degree as earnings during and after the course are liable to alter.
 

2 comments

Robson Urai July 23, 2017, 9:49 p.m.

Dear Potential Lender,

I got an offer to study master level degree at the University of Portsmouth, UK in Engineering Geology.

I commencement date for study is 19/09/2017, I hereby wish to seek funding support.

Thank you,

Robson Urai

Charlotte King July 25, 2017, 10:40 a.m.

Hi Robson,

As you have an offer to start your postgraduate studies in September 2017 you are eligible to apply for one of our Postgrad Solutions Study Bursaries worth £500.
The application deadline is 14th September 2017 - so you still have time:
https://www.postgrad.com/fees_and_funding/postgrad_solutions_study_bursaries/information/

Good luck.

Charlotte

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