That's the case for undergraduate loan; however, with postgraduate, the money directly comes to you as at postgraduate stage, it is accepted that the masters' loan does not necessarily cover the entirety of course fees (e.g. some LLM courses are north of £20k) - and the best part is it is up to...
I don't see why not - the student loan company expressly says that if your additional income comes from a scholarship or grant, you are still eligible for the full loan so long as the LPC is paired with an LLM or MSc.
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