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Students & Graduates · 2025/26 threshold

Postgraduate Loan Calculator

The PG Loan covers Master’s and Doctoral degrees in England & Wales — 6% of income above £21,000, calculated separately from any undergraduate loan.

Your salary

£

Postgraduate Loan threshold: £21,000 (2025/26). Rate 6% on the excess.

Monthly repayment

£70

£840 per year

Calculation

  • Annual salary
    £35,000
  • Postgraduate Loan threshold
    −£21,000
  • Income above threshold
    £14,000
  • Annual repayment (6%)
    £840

How we calculated your result

Repayment = 6% × (annual salary − £21,000). PG repayments sit alongside Plan 1/2/5 — both can be deducted simultaneously.

Official UK rules in simple English

  • Threshold £21,000 (frozen until 2027).
  • Rate 6% — lower than undergrad’s 9%, but stacks with it.
  • Interest: RPI + 3% throughout the loan.
  • Written off 30 years after first April due.

Common pitfalls to watch out for

  • ⚠ PG + undergrad = 15% combined

    Earn £30k? You pay 6% on £9k PG + 9% on Plan-2 excess separately. Can sting at higher incomes.

  • ⚠ Only Master's/Doctoral

    PGCE (teacher training) is funded via undergraduate loans, not PG loans. Different rules.

Frequently asked questions

What if I drop out?
Pro-rata loan based on terms attended; same repayment terms apply.
Is the interest different in repayment?
No — PG loans use RPI+3% in study AND repayment (unlike undergrad which has income-tiered rates).

Estimate based on 2025/26 thresholds.

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