Postgraduate Loan Repayment Calculator

Postgraduate Master's loans of up to £13,206 for the whole course (courses starting on or after 1 August 2026) are available for taught and research master's courses. Repayment is at 6% of income above £21,000, collected alongside any existing undergraduate loan repayment. The two are separate deductions, so you can end up paying 9% plus 6%, that is 15% of income above the respective thresholds. There is no means-testing on household income, so the full amount is open to every eligible student.

Interest is charged at RPI plus 3%, which the 6% ceiling currently holds at 6%, and the loan is written off 30 years after the April following course completion. Eligibility is straightforward, since you must be under 60, normally live in England and be taking a first Master's. These are Student Finance England figures: Wales has its own postgraduate funding with different amounts, repaid on the same 6% terms, while postgraduate loans from Scotland and Northern Ireland are repaid under Plan 4 and Plan 1. The money arrives as one combined loan covering tuition and living costs rather than two separate payments. Doctoral study is funded separately, through a Doctoral Loan of up to £31,122 for courses starting on or after 1 August 2026, divided equally across each year of the course. Applications open through gov.uk from May for an academic year starting in September.

Enter your salary to see monthly repayments. If you also have an undergraduate loan, pick its plan and the calculator shows both deductions and the combined monthly amount taken from your pay. On a £35,000 salary with a postgraduate loan alone, income above the threshold is £35,000 − £21,000 = £14,000, giving an annual repayment of £14,000 × 6% = £840, or £70.00 a month. Add a Plan 2 loan and another £42.11 a month comes off, taking the total deduction to £112.11.

Running both loans together costs more than the headline percentages suggest, because the postgraduate threshold is the lower of the two and kicks in earlier. Someone on Plan 5 pays 9% above £25k and 6% above £21k at the same time, which is 15% on income above £25k. At a £40k salary that is 9% × £15k = £1,350 and 6% × £19k = £1,140, or £2,490 a year, a net £207 a month. At £60k the same sums come to £3,150 and £2,340, or £5,490 a year.

The loan rarely covers the whole bill. Master's tuition often runs £8-£15k with living costs of £10k+ on top, so a realistic total of £18-£25k against a maximum of £13k leaves a shortfall to fill from scholarships, studentships, employer sponsorship, savings, a career development loan or family help. Scholarships are free money but competitive, and studentships are generally restricted to PhD candidates.

Whether the debt earns its keep depends heavily on the field. UK Master's graduates typically earn £4,000-£10,000 a year more than equivalent undergraduate-only peers, with a lifetime premium of £100k-£400k, but the spread is wide. STEM, finance, law and medicine show strong returns, with a £13k loan and a £5k personal contribution, £18k in total, paid back within 2-5 years. Humanities and arts show a limited premium and a payback period closer to 8-15 years. A career-change Master's such as a PGCE can also pay well where the earlier profession was poorly paid.

Taking the loan makes sense when you cannot fund the course another way and the qualification will lift your earning power, since repayment is automatic through PAYE and anything outstanding disappears at 30 years. It makes less sense if the degree will not change your career direction, or if you are already a high earner who could pay outright. Unlike Plan 2, most postgraduate borrowers do repay in full, and graduates on £40k+ typically clear the balance and the interest within 15-20 years.