Undergraduate vs Postgraduate Loans - Comparison Guide
Compare undergraduate and postgraduate student loans in the UK, including how they work together if you have both.
Undergraduate loans in the UK fall under several “plans” depending on where and when you studied (e.g. Plan 1/2/4/5). Postgraduate loans (PGL) have their own rules. Both are income-contingent, but they use different thresholds, interest calculations, and write-off periods—so having both can change how much you repay each month.
This guide highlights the key differences and explains how combined repayments work at a glance. For an exact figure, use the calculators linked below.
Key Differences at a Glance
| Feature | Undergraduate | Postgraduate (PGL) |
|---|---|---|
| Repayment Threshold | Plan-dependent (e.g. Plan 1/2/4/5 each has a different annual threshold) | Separate PGL threshold (you only repay when income exceeds this level) |
| Repayment Rate | 9% of income over the plan’s threshold | 6% of income over the PGL threshold |
| Interest | Varies by plan (e.g. RPI-linked or RPI with caps/tiers depending on plan) | Typically RPI plus a fixed margin for PGL |
| Write-off | Plan-dependent (e.g. 25/30/40 years or age-based on older plans) | Usually written off after 30 years (PGL rules) |
| If You Have Both | UG and PGL repayments are calculated separately and taken at the same time via PAYE/Self Assessment | You’ll pay 9% (UG) + 6% (PGL) on the portions of income above each threshold, respectively |
How Combined Repayments Work
If your income exceeds both thresholds, HMRC will collect undergraduate and postgraduate repayments together. Each plan’s repayment is calculated independently using its own threshold and rate, then deducted in your payslip.
Because the thresholds differ, you might repay only one of them (e.g. PGL only) for a while, or both once your income rises. The calculators can show exactly when each kicks in for your numbers.
Calculate Your Repayments
See your monthly amounts for UG only, PGL only, or both together