Postgraduate Loan Student Loan Calculator
Postgraduate Loans have a lower repayment threshold, 6% repayment rate, and higher interest at RPI + 3%.
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Complete Guide to UK Postgraduate Loans
Postgraduate Loans are a separate category of student loan available to those studying a Master's degree or Doctoral (PhD) programme in the United Kingdom. They were first introduced in the 2016/17 academic year for Master's courses and in 2018/19 for Doctoral courses. Unlike undergraduate loans — which cover tuition fees and maintenance separately — Postgraduate Loans provide a single contribution towards your course and living costs, paid directly to you rather than to your university.
Critically, Postgraduate Loans are separate from and additional to any undergraduate student loan you may already have. If you hold both a Plan 2 undergraduate loan and a Postgraduate Loan, you will repay both simultaneously. This can result in significant combined deductions from your salary, which catches many graduates off guard.
Who Has a Postgraduate Loan?
- Postgraduate Master's Loan borrowers — those who took a loan for a Master's course (MA, MSc, MBA, LLM, etc.) from 2016/17 onwards
- Postgraduate Doctoral Loan borrowers — those who took a loan for a PhD or other doctoral programme from 2018/19 onwards
To be eligible, you must have been under 60 at the start of your course and studying at an eligible institution in the UK. Students from England, Wales, and eligible EU nationals can apply, though the specific arrangements vary by country within the UK.
Key Postgraduate Loan Facts for 2026/27
- Annual repayment threshold: £21,000 per year (£1,750 per month, or £404 per week)
- Repayment rate: 6% of your gross income above the threshold (NOT 9%)
- Interest rate: RPI + 3% = 6.2% (the highest rate of any current plan)
- Write-off period: 30 years after the April you were first due to repay
- Maximum Master's Loan: Up to £13,206 for the full course
- Maximum Doctoral Loan: Up to £31,122 for the full course (typically 3–4 years)
- Collection method: PAYE (automatic) or Self Assessment if self-employed
Key Differences from Undergraduate Loans
Postgraduate Loans have several important differences from undergraduate Plans 1, 2, 4, and 5:
| Feature | Undergraduate (Plan 2) | Postgraduate |
|---|---|---|
| Repayment rate | 9% above threshold | 6% above threshold |
| Threshold | £29,385 | £21,000 |
| Interest rate | 3.2% – 6.2% | 6.2% (flat) |
| Payment to | University (fees) + student (maintenance) | Student only |
| Max amount | £9,790/yr fees + maintenance | £13,206 total (Master's) |
| Write-off | 30 years | 30 years |
The lower repayment rate of 6% (rather than 9%) means each individual payment is smaller. However, the much lower threshold of £21,000 means repayments kick in sooner — you start repaying on a Postgraduate Loan at a salary well below the national median, whereas Plan 2 repayments do not begin until £29,385.
Dual Loan Repayments — The Combined Impact
If you have both an undergraduate loan (any plan) and a Postgraduate Loan, you repay both simultaneously from the same income. Each loan's repayment is calculated independently against its own threshold and rate. Here is what this looks like in practice:
Example — salary of £40,000 with Plan 2 + Postgraduate Loan:
- Plan 2 repayment: 9% × (£40,000 − £29,385) = £955.35/year (£79.61/month)
- Postgraduate repayment: 6% × (£40,000 − £21,000) = £1,140/year (£95/month)
- Total student loan deduction: £2,095.35/year (£174.61/month)
Combined with income tax, National Insurance, and any pension contributions, this can result in a significant reduction in take-home pay. It is important to budget for both deductions when planning your finances post-graduation. The calculator above models your Postgraduate Loan in isolation — if you want to see the combined impact, use the individual plan calculator for your undergraduate loan as well.
Repayment Examples at Different Salaries
| Annual Salary | Income Above Threshold | Annual Repayment | Monthly Repayment |
|---|---|---|---|
| £20,000 | £0 (below threshold) | £0 | £0 |
| £25,000 | £4,000 | £240 | £20.00 |
| £30,000 | £9,000 | £540 | £45.00 |
| £35,000 | £14,000 | £840 | £70.00 |
| £40,000 | £19,000 | £1,140 | £95.00 |
| £50,000 | £29,000 | £1,740 | £145.00 |
| £75,000 | £54,000 | £3,240 | £270.00 |
Postgraduate Loan Interest — The Highest Rate
Postgraduate Loans always charge RPI + 3%, regardless of your income. This is the maximum rate — the same ceiling that Plan 2 only charges to those earning above £52,885. For 2026/27, this means a rate of 6.2%. There is no sliding scale, no income-based reduction, and no exception.
On a Master's Loan of £13,000, this 6.2% interest rate adds roughly £806 per year to your balance. If your repayments (based on 6% of income above £21,000) are less than this amount — which they will be unless you earn above roughly £34,500 — your balance actually grows each year despite making repayments. This is why many Postgraduate Loan borrowers will see their balance increase for years before it begins to decrease (if it ever does).
Should You Overpay Your Postgraduate Loan?
The same principles apply as with undergraduate loans: only overpay if you would repay the full balance before the 30-year write-off. Given the relatively small balances (£13,206 maximum for Master's), some higher earners may indeed repay in full. However, the high interest rate of 6.2% means the bar for "worth overpaying" is higher — any alternative use of your money would need to beat 6.2% returns to be more cost-effective.
If you have both undergraduate and postgraduate loans, consider which (if either) you would repay in full, and direct any overpayments to that loan specifically. Use our early repayment calculator to model the impact. For general guidance, see our should I repay early? guide.
Salary Sacrifice and Postgraduate Loans
Salary sacrifice is particularly effective for Postgraduate Loan holders because of the low £21,000 threshold. Every £100 you sacrifice into a pension saves you £6 in Postgraduate Loan repayments (6%), plus additional savings on income tax and National Insurance. If you also have a Plan 2 loan, the total savings are £15 per £100 sacrificed (9% + 6%). This makes salary sacrifice one of the most powerful financial strategies available to dual-loan holders. Read our salary sacrifice guide for full details.
Postgraduate Loans and Mortgages
While student loans do not appear on your credit file, mortgage lenders consider your net take-home pay when assessing affordability. Dual-loan holders with both undergraduate and postgraduate deductions may find their borrowing capacity reduced. At a salary of £40,000, combined student loan deductions of £175 per month reduce your disposable income by over £2,095 per year — this can affect how much a lender is willing to offer. Being aware of this when planning a property purchase is important.
Related calculators and guides: Plan 2 Calculator · Interest rates explained · Should I overpay? · Compare all plans · Early repayment calculator · Salary sacrifice guide