Margin money on an education loan
Margin money is the share of the total cost the lender expects you to fund rather than borrow. It is a real cash requirement, it is often discovered late, and it arrives at the same time as every other expense of leaving the country.
How it works
- It is expressed as a percentage of the total cost of the course, not of the loan.
- It is typically required proportionately with each disbursement, not once at the start.
- Scholarships and assistantships usually count towards it, which is worth confirming.
- It is frequently lower or nil below a threshold loan amount.
The practical consequence is that a family planning for the loan to cover everything finds a gap at each fee instalment. Ask for the margin percentage and the disbursement schedule at sanction, and plan the cash accordingly.
Reducing it
- Ask whether a scholarship offsets it — most lenders allow this.
- Ask whether it differs for a secured loan, which it usually does.
- Ask whether it applies to living costs as well as tuition, which varies by lender.
- Compare lenders on margin as well as rate; a lower rate with a higher margin can be the worse deal in the year you need the cash.
Margin money is one of the three costs families consistently under-budget. The other two are the visa financial requirement, which must be shown separately, and the first months abroad before any part-time income starts.
Margin money — FAQs
2 questions
The share of the total cost you fund yourself rather than borrowing. It is usually required proportionately with each disbursement.
Usually yes. Confirm with the lender at sanction rather than assuming it.
Not sure which lender fits? A counsellor compares what you would actually be offered across all twelve — free, and with no application.
Sources
Checked against these sources on 1 October 2026.