Postgraduate Loan essentials
- Repayment threshold: £21,000 per year (frozen since 2016)
- Repayment rate: 6% of income above the threshold (NOT 9%)
- Interest rate: RPI + 3% (currently 6.2%)
- Loan written off 30 years after the April you became liable to repay
- Postgraduate loans are calculated separately and stack on top of undergraduate plans
Not sure? Check your account at gov.uk.
Frequently asked questions
I have both a Plan 2 loan and a postgraduate loan — what do I repay?
You repay both, simultaneously. On a £35,000 salary in 2026-27: Plan 2 takes 9% of (£35,000 - £29,385) = £42 per month. Postgrad takes 6% of (£35,000 - £21,000) = £70 per month. Total: £112 per month.
Why is the postgrad rate 6% instead of 9%?
Postgraduate loans were designed with a lower rate to soften the impact of stacking on top of undergraduate repayments. The £21,000 threshold is also lower, which offsets the lower percentage somewhat.
Should I overpay my postgraduate loan?
Postgrad loans have higher interest (6.2%) than Plan 1, 4, or 5 — so if your balance is small enough that you'd realistically clear it before the 30-year write-off, overpaying makes more sense than for Plan 2. Run your numbers above.