From 1 July 2026, US graduate students starting a new program can no longer take out Grad PLUS loans. For a UK Master's, that changes how you plan your budget. The good news: a one-year UK Master's is often cheap enough that the remaining federal loans, plus savings or a scholarship, can still cover it.
This guide is general information, not financial advice. Loan rules are set by the US Department of Education and can change. Always confirm with StudentAid.gov and the university's US loans office.
What changed on 1 July 2026
- Grad PLUS has ended for new borrowers. If you start a new program on or after 1 July 2026, it is not available.
- Direct Unsubsidized Loans remain. Graduate students can borrow up to $20,500 a year, with a $100,000 lifetime limit for graduate study.
- Part-time study is prorated. Borrowing less than full time reduces how much you can take out.
- Legacy borrowers. If you already received a federal loan for your current program before 1 July 2026, you may keep the old rules for a limited time. Ask your university's US loans team.
How far does $20,500 go in the UK?
Many UK taught Master's programs last 12 months. Tuition for international students commonly ranges from about $16,000 to $40,000+, and living costs vary a lot by city (London is the most expensive). At some universities, $20,500 covers most or all of the tuition. At others, you will need to fill a gap for tuition and living costs.
A one-year degree also uses far less of your $100,000 lifetime limit than a two-year US Master's, which leaves room if you later go on to a PhD.
Ways to fill the gap
- University scholarships. Many UK universities offer automatic or merit awards for US students, often $2,500 to $10,000 off tuition.
- Major awards. Marshall, Fulbright, Rhodes, Gates Cambridge and Mitchell (Ireland) fund some or all of your studies. They are competitive and have early deadlines.
- Private student loans. Some US lenders lend for study abroad at eligible schools. Compare rates and terms carefully, as they lack federal protections.
- Savings and family support. A shorter program means fewer months of living costs to cover.
- Choose a lower-cost university or city. Outside London, both tuition and rent are often noticeably lower.
UK universities that accept US federal loans
The US Department of Education publishes the official list of foreign schools in the federal loan programs. It includes over 200 UK institutions marked "Eligible". Below is a selection of well-known universities shown as Eligible on that list when we checked it on 3 November 2026. For the full and latest list, see the official StudentAid.gov list.
England
- Aston University
- Bath Spa University
- Birmingham City University
- Bournemouth University
- Falmouth University
- Goldsmiths, University of London
- Imperial College London
- King's College London
- Kingston University
- Leeds Beckett University
- Loughborough University
- Manchester Metropolitan University
- Nottingham Trent University
- Oxford Brookes University
- Queen Mary University of London
- University College London
- University of Bath
- University of Birmingham
- University of Bristol
- University of Cambridge
- University of Central Lancashire
- University of Chester
- University of Durham
- University of East Anglia
- University of Essex
- University of Exeter
- University of Hertfordshire
- University of Kent
- University of Lancaster
- University of Leeds
- University of Leicester
- University of Manchester
- University of Newcastle upon Tyne
- Northumbria University
- University of Nottingham
- University of Oxford
- University of Sheffield
- University of Southampton
- University of Warwick
- University of York
Scotland
- Edinburgh Napier University
- Glasgow Caledonian University
- Heriot-Watt University
- University of Aberdeen
- University of Edinburgh
- University of Glasgow
- University of St Andrews
- University of Stirling
- University of Strathclyde
Wales
- Aberystwyth University
- Bangor University
- Cardiff University
- Swansea University
- University of South Wales
Northern Ireland
- Queen's University Belfast
- Ulster University
Eligibility can change, and some programs (for example online, distance or certain certificate courses) may not qualify even at an eligible university. Confirm with the university before you apply.
How to apply, step by step
- Check your program qualifies. Email the university's US loans or funding office.
- File the 2026-27 FAFSA at StudentAid.gov, using the university's Federal School Code (UK codes usually start with "G" or are numeric; the university will give you its code).
- Complete entrance counseling and the Master Promissory Note on StudentAid.gov.
- Send any forms the university asks for so it can work out your Cost of Attendance and certify your loan.
- Plan for timing. Funds are usually paid in installments each term, often after you arrive. Have enough money for your first weeks.
Next steps
Read our FAFSA and federal loans guide for more detail, then browse universities to compare tuition in US dollars.
