Postgraduate Student Loans UK
Everything you need to know about Postgraduate Master's and Doctoral loans, including how repayments work and who is eligible.
Postgraduate Loans at a Glance
Master's Loan
- •Up to £12,167 (2023/24) total loan
- •Paid directly to you in three installments each year
- •Can be used for tuition fees and living costs
- •Repay 6% of income above £21,000 threshold
- •Written off 30 years after becoming eligible to repay
Doctoral Loan
- •Up to £27,892 (2023/24) total loan
- •Paid directly to you in installments across your course
- •Can be used for tuition fees and living costs
- •Repay 6% of income above £21,000 threshold
- •Written off 30 years after becoming eligible to repay
In this article
How Postgraduate Loans Work
Postgraduate loans were introduced in 2016 for Master's courses and 2018 for Doctoral courses to help more people access higher education beyond undergraduate level. Unlike undergraduate loans, postgraduate funding works as a contribution toward costs rather than covering specific fees.
Eligibility Requirements
To qualify for a UK postgraduate loan, you generally need to:
- Be under 60 years old when starting your course
- Be a UK or Irish national, or have settled/pre-settled status
- Normally live in England (different arrangements exist for Scotland, Wales, and Northern Ireland)
- Not already have an equivalent or higher-level qualification
- Be studying at an eligible university or college
- Be on a full Master's degree course (taught or research) or a Doctoral program
Repayment Terms
Postgraduate loans have some key differences from undergraduate loans:
- Repayment threshold: You repay 6% of your income above £21,000 per year (this threshold has been frozen since introduction)
- Interest rate: RPI + 3% during and after your studies (same as the maximum rate for Plan 2 undergraduate loans)
- Concurrent repayments: If you also have an undergraduate loan, you'll repay both simultaneously (which can mean 15% of income above thresholds for Plan 2 + Postgraduate loan holders)
Example: Combined Undergraduate and Postgraduate Repayments
For someone earning £35,000 per year with both Plan 2 and Postgraduate loans:
- Plan 2 repayment: 9% of (£35,000 - £27,295) = £694.65/year
- Postgraduate repayment: 6% of (£35,000 - £21,000) = £840/year
- Total annual repayment: £1,534.65 (£127.89/month)
Differences Between Master's and Doctoral Loans
While both loans have identical repayment terms, they differ in maximum amounts and payment structures:
- Master's loans: For courses lasting 1–2 years, with payments divided equally across each year
- Doctoral loans: For courses lasting 3–8 years, with payments divided across the course length, up to a maximum of 8 academic years
| Feature | Master's Loan | Doctoral Loan |
|---|---|---|
| Maximum Amount | £12,167 | £27,892 |
| Course Duration | 1-2 years | 3-8 years |
| Repayment Rate | 6% above £21,000 | 6% above £21,000 |
| Interest Rate | RPI + 3% | RPI + 3% |
| Write-off Period | 30 years | 30 years |
Regional Differences
Different UK nations have their own postgraduate funding schemes:
🏴 Scotland
The Student Awards Agency Scotland (SAAS) offers tuition fee loans of up to £5,500 for Scottish/EU students, plus living cost loans for Scottish students
🏴 Wales
Student Finance Wales offers a combined grant and loan of up to £18,025 for Welsh students, with a portion as non-repayable grant
Northern Ireland
Tuition fee loans of up to £5,500 are available for Northern Irish students
Frequently Asked Questions
Can I get a postgraduate loan if I already have an undergraduate loan?
Yes, you can have both an undergraduate and postgraduate loan at the same time. You'll repay both loans simultaneously once you're earning above both thresholds. This means you could be repaying up to 15% of your income above the thresholds (9% for undergraduate + 6% for postgraduate).
Does the postgraduate loan cover my tuition fees?
The postgraduate loan is paid directly to you, not to your university. You can use it to cover tuition fees, living costs, or a combination of both. However, the maximum amount (£12,167 for Master's or £27,892 for Doctoral) may not cover all your costs, especially if tuition fees are high.
What's the interest rate on postgraduate loans?
Postgraduate loans charge RPI + 3% interest from the day you receive your first payment. This is the same as the maximum rate charged on Plan 2 undergraduate loans. Unlike Plan 2 loans, the postgraduate loan interest rate doesn't vary based on your income.
Calculate Your Repayments
See how postgraduate loan repayments will affect your monthly income
Dr. Lila Sharma
UK Education Policy Specialist
With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.