What Is a Postgraduate Loan Student Loan?
The Postgraduate Loan funds Master's and Doctoral study across the UK. It works differently from the undergraduate plans: you repay 6% (not 9%) of income above £21,000 a year, interest is a flat RPI + 3%, and the balance is written off after 30 years.
Postgraduate Loan at a Glance
- Who
- UK-wide
- All years
- Repayment threshold
- £21,000/yr
- £1,750/mo
- Repayment rate
- 6%
- of income above threshold
- Interest
- RPI + 3%
- 6.2% now
- Written off after
- 30 years
What Postgraduate Loan means
A Postgraduate Loan is repaid at 6% of income above £21,000 a year (£1,750 a month). The threshold is the lowest of any plan, and interest is a flat RPI + 3% regardless of your salary.
Crucially, a Postgraduate Loan is repaid alongside — not instead of — any undergraduate loan. If you hold both, the deductions stack, so a graduate on Plan 2 plus a Postgraduate Loan can face two repayments at once.
Who is on Postgraduate Loan?
You are on a Postgraduate Loan if you borrowed for a Master's or Doctoral course from Student Finance anywhere in the UK from 2016 onwards.
It sits on top of any undergraduate plan you already have. Your undergraduate loan keeps its own threshold, rate and write-off — the Postgraduate Loan is calculated separately.
Not sure this is you? Take the 3-question which plan quiz to confirm.
Postgraduate Loan interest rate
Postgraduate Loan interest is a flat RPI + 3% — currently 6.2% — for everyone, whatever you earn. There is no income-based sliding scale like Plan 2 and no cap like Plan 1 or Plan 4.
That makes it one of the higher interest rates in the system, so the balance grows quickly. Combined with the 30-year term, many postgraduate borrowers repay well beyond what they originally borrowed.
For a full walkthrough of how student loan interest compounds, read how student loan interest works.
How Postgraduate Loan compares to other plans
The Postgraduate Loan has the lowest threshold (£21,000) but the lowest repayment rate (6% versus 9%). Its flat RPI + 3% interest matches Plan 2's ceiling, and because it stacks on top of an undergraduate loan, the combined deductions can be heavier than any single plan.
| Plan | Who & when | Threshold | Rate | Interest | Write-off |
|---|---|---|---|---|---|
| Plan 1 | England, Wales & N. IrelandPre-2012 (all years for NI) | £26,892 | 9% | Lower of RPI or base rate + 1%3.2% now | 25 yrs |
| Plan 2 | England & Wales2012-2023 | £29,376 | 9% | RPI to RPI + 3% (income-based)3.2%–6.2% now | 30 yrs |
| Plan 4 | ScotlandAll years | £33,792 | 9% | Lower of RPI or base rate + 1%3.2% now | 30 yrs |
| Plan 5 | England2023+ | £24,996 | 9% | RPI only3.2% now | 40 yrs |
| Postgraduate Loan | UK-wideAll years | £21,000 | 6% | RPI + 3%6.2% now | 30 yrs |
See the full breakdown on the UK student loan plans hub.
Why middle earners feel Postgraduate Loan the most
Postgraduate borrowers feel the middle-earner squeeze twice over: the 6% postgraduate deduction stacks on top of a 9% undergraduate deduction, while RPI + 3% interest keeps both balances growing. Middle earners with two loans running at once can lose a meaningful slice of every pay rise. Model the combined effect to see it clearly.
Middle earners repay the most across every UK plan — enough to make real repayments, but not enough to clear the balance before interest bites. Put your own salary into the student loan repayment calculator to see exactly where you fall.
Postgraduate Loan FAQs
- What is a Postgraduate Loan?
- A Postgraduate Loan funds Master's and Doctoral study in the UK. You repay 6% of income above £21,000 a year, interest is a flat RPI + 3% (currently 6.2%), and the balance is written off after 30 years. It is repaid alongside any undergraduate loan.
- What is the Postgraduate Loan threshold?
- The Postgraduate Loan threshold is £21,000 a year (£1,750 a month), the lowest of any plan. You repay 6% of everything above it — a lower rate than the 9% charged on undergraduate plans.
- What is the Postgraduate Loan interest rate?
- Postgraduate Loan interest is a flat RPI + 3% for everyone, currently 6.2%. Unlike Plan 2 there is no income-based sliding scale, and unlike Plan 1 and Plan 4 there is no low-rate cap.
- Do I repay a Postgraduate Loan and an undergraduate loan at the same time?
- Yes. A Postgraduate Loan is repaid on top of any undergraduate plan, not instead of it. Each has its own threshold and rate, so if you hold both you make two separate deductions — 6% above £21,000 for the postgraduate loan plus 9% above your undergraduate threshold.