Plan 3 Student Loan Explained
Plan 3 is real. It is the Department for Education's name for the Postgraduate Loan. Here is what it means for your repayments.
Key Takeaways
- Plan 3 is the Department for Education's official designation for the Postgraduate Loan. It is a real plan, not a gap in the numbering.
- The name feels unfamiliar because the Student Loans Company and HMRC borrower-facing documents call it “Postgraduate Loan” instead. The DfE uses “Plan 3”.
- Plan 3 has a £21,000 threshold (unchanged since 2016), a 6% repayment rate and a 30-year write-off. These are very different terms from the undergraduate plans.
- Interest on Plan 3 is RPI + 3% uncapped, but has been capped at 6% since 1 September 2026 for the 2026/27 academic year.
- On your payslip Plan 3 appears as PGL, because payroll software follows HMRC's “postgraduate loan” wording.
In this article
If you have searched for “Plan 3 student loan” and arrived here, you are not alone. Thousands of people search for it each month, usually after being told it does not exist. The short answer: Plan 3 is real. It is the Department for Education's designation for the Postgraduate Loan, used in its own published guidance, including the April 2026 interest rate cap announcement.
The threshold, rate, interest and write-off rules are set out in full on the Postgraduate Loan (Plan 3) page. This guide explains where the name comes from, why your SLC statement and payslip say something different, and how to tell whether it applies to you. For a full plan-by-plan breakdown, see our plan identification guide.
Does Plan 3 Exist?
Yes. Plan 3 is the Postgraduate Loan.
The Department for Education uses “Plan 3” in its own published guidance. Its 7 April 2026 announcement of the interest rate cap refers throughout to “Plan 2 and 3 student loans”. What confuses people is that the Student Loans Company and HMRC call the same product a “Postgraduate Loan” in the documents borrowers actually receive.
Here is every active UK student loan type as of 2026:
- Plan 1: pre-September 2012 starters in England and Wales, and all Northern Ireland borrowers
- Plan 2: England September 2012 to July 2023, and Wales from September 2012 onwards
- Plan 3: the Postgraduate Loan, master's and doctoral borrowers in England and Wales
- Plan 4: Scotland-domiciled students from August 2012 onwards
- Plan 5: England only, courses starting 1 August 2023 or later
There is no gap in the sequence. Plan 3 sits between Plans 2 and 4 exactly where you would expect it to, and it covers postgraduate borrowing.
Why the Name Is Unfamiliar
Two departments, two vocabularies
The Department for Education writes policy, and in policy documents the postgraduate product is Plan 3. The Student Loans Company administers the loan and writes to borrowers, and in that correspondence it is the Postgraduate Loan. Both names describe the same debt, the same threshold and the same repayment rate.
The DfE announcement of 7 April 2026 that capped interest is the clearest example. It says the cap applies to “Plan 2 and 3 student loans”, and that “current students on Plan 2 and Plan 3 also attract an interest rate of RPI +3% while they are studying”.
What your own paperwork will say
The SLC guide to terms and conditions for 2026 to 2027 does not use the phrase “Plan 3” at all. HMRC's guidance for employers says “postgraduate loan”. So if you check your annual statement or your payslip expecting to see Plan 3, you will not find it. That absence is a naming convention, not evidence that the plan does not exist.
Why it matters practically
It matters when you read policy news. Announcements about “Plan 2 and 3” loans, including the 6% interest cap from 1 September 2026, apply to your postgraduate debt even though your SLC account never uses that wording.
Plan 3 Terms in Full
Plan 3, the Postgraduate Loan (PGL), is a real and active product with its own threshold, repayment rate and write-off period.
Who qualifies
- England or Wales residents taking a master's or doctoral course
- First loan applications from 2016 onwards
- You must be under 60 at the course start date
- Scotland and Northern Ireland have separate postgraduate funding systems
Key terms
| Term | Detail |
|---|---|
| Repayment threshold (2025/26 and 2026/27) | £21,000 (frozen since 2016) |
| Repayment rate | 6% of income above threshold |
| Interest rate | RPI + 3% uncapped, capped at 6% since 1 September 2026 (no income taper) |
| Write-off period | 30 years after first repayment due |
| Payslip code | PGL |
| Maximum loan amount (2026/27) | £13,206 (master's); £31,122 (doctoral) |
The whole amount is paid to you, not to your university, and you decide how to split it between fees and living costs. There is no separate maintenance loan for a master's.
Stacking with an undergraduate plan
If you hold both an undergraduate plan and a Postgraduate Loan, both are deducted from your salary at the same time. Your employer applies each deduction independently.
Example: Plan 2 + Plan 3 at £35,000 (2026-27)
- Plan 2: 9% of (£35,000 − £29,385) = 9% of £5,615 = £505.35/yr
- Plan 3 (PGL): 6% of (£35,000 − £21,000) = 6% of £14,000 = £840/yr
- Total: £1,345.35/yr (£112.11/month)
For a full breakdown of Postgraduate Loan strategy, see our Postgraduate Loan guide.
All Plans Compared
The table below shows every active UK student loan plan, including Plan 3.
| Plan | Who it covers | Threshold 2025-26 | Threshold 2026-27 | Rate | Interest | Write-off |
|---|---|---|---|---|---|---|
| Plan 1 | Pre-Sept 2012 (Eng/Wales); all NI | £26,065 | £26,900 | 9% | Lower of RPI or base + 1% (4.1%) | 25 yr |
| Plan 2 | England Sept 2012 – Jul 2023; Wales Sept 2012 onwards | £28,470 | £29,385 | 9% | RPI + 0–3% | 30 yr |
| Plan 3 (PGL) | Postgrad (Eng/Wales), from 2016 | £21,000 | £21,000 | 6% | RPI + 3% uncapped, 6% cap since Sept 2026 | 30 yr |
| Plan 4 | Scotland-domiciled, Aug 2012+ | £32,745 | £33,795 | 9% | Lower of RPI or base + 1% (4.1%) | 30 yr |
| Plan 5 | Aug 2023+ (England) | £25,000 | £25,000 | 9% | RPI only (4.1%) | 40 yr |
Thresholds shown are the 2025-26 figures and the current 2026-27 figures that took effect in April 2026. Plan 2 is then frozen at £29,385 from April 2027 to April 2030. Plan 5 is frozen at £25,000 until April 2027, then uprated annually.
Identify Your Plan
Use this checklist to confirm which plan applies to you.
Did you start an undergraduate course in England or Wales before September 2012?
Yes → Plan 1
Did you study in Northern Ireland (any start date)?
Yes → Plan 1
Did you start an undergraduate course in England between September 2012 and July 2023, or anywhere in Wales from September 2012 onwards?
Yes → Plan 2
Were you Scotland-domiciled and started from August 2012?
Yes → Plan 4
Did you start an undergraduate course in England on or after 1 August 2023?
Yes → Plan 5
Did you take out a master's or doctoral loan in England or Wales from 2016?
Yes → Plan 3, which the SLC calls the Postgraduate Loan (PGL)
Still unsure? Read our guide to the UK student loan plans or check your SLC online account directly.
Frequently Asked Questions
Is there a Plan 3 student loan in the UK?
Yes. Plan 3 is the Department for Education's designation for the Postgraduate Loan, the loan for master's and doctoral study in England and Wales. The DfE's 7 April 2026 announcement of the interest rate cap refers throughout to "Plan 2 and 3 student loans". The active plans are Plan 1, Plan 2, Plan 3 (the Postgraduate Loan), Plan 4 and Plan 5.
Why does my SLC statement or payslip not say Plan 3?
Because the Student Loans Company and HMRC use the name "Postgraduate Loan" in the documents borrowers receive. The SLC guide to terms and conditions for 2026 to 2027 does not contain the phrase "Plan 3" at all, and payroll software follows HMRC's wording, so the deduction appears on your payslip as PGL. It is the same loan under a different label.
What are the Plan 3 repayment terms?
You repay 6% of income above £21,000 a year (£1,750 a month) in 2026-27, on top of any undergraduate plan deduction. Interest is RPI + 3%, capped at 6% since 1 September 2026 for the 2026/27 academic year. Any balance left 30 years after the April you became due to repay is written off. Master's Loans go up to £13,206 and Doctoral Loans up to £31,122 for courses starting on or after 1 August 2026.
Does the Plan 3 loan include a maintenance loan?
No. The Postgraduate Master's Loan is a single sum of up to £13,206 paid directly to you in three instalments a year. You choose how much goes on tuition fees and how much on living costs. There is no separate, means-tested maintenance loan for a master's in England.
Calculate Your Repayments
Enter your salary and plan to see exactly what you repay each month.
Student Loan Calculator UK Editorial Team
Editorial Team
This page is maintained by the Student Loan Calculator UK editorial team, checked against GOV.UK and Student Loans Company guidance. Read more about our editorial approach.
Related Guides
Student Loan Plans Explained
Every plan side by side, with thresholds, interest and write-off terms.
Postgraduate Loan Strategy
Whether to overpay your Plan 3 loan, how stacking with Plan 2 affects you, and the 30-year write-off explained.
Plan 2 Strategy Guide
How the threshold freeze until 2030 affects your total repayments, and what to do about it.
Repayment Thresholds Guide
Current 2026-27 thresholds for all five plans, with monthly and weekly breakdowns.
Maintenance Loan for a Master's
Why there is no separate living-cost loan at master's level, and what you get instead in each UK nation.