Students from England starting a master’s degree on or after 1 August 2026 can borrow up to £13,206 towards fees and living costs, up from £12,858 for courses that started in 2025/26. The loan is not means tested, is paid to the student in three instalments of 33%, 33% and 34% across the year, and is repaid at 6% of income above £21,000 from the April after the course ends, on top of any undergraduate loan repayments. Anything unpaid is written off 30 years after repayment begins. Because most master’s fees exceed the loan, it rarely covers a full year of study on its own.
The figures
| Courses starting from 1 August 2026 | |
|---|---|
| Maximum loan | £13,206 |
| Paid | Directly to the student, in instalments of 33%, 33% and 34% |
| Repayment rate | 6% of income above £21,000 a year, £1,750 a month, £403 a week |
| Repayment starts | The April after the course ends, once income is above the threshold |
| Interest | Retail Prices Index plus 3%, currently 6%, from the first payment |
| Written off | 30 years after the April repayments were due to start |
The maximum is for the whole course, so a two-year part-time master’s receives half each year. Courses starting between 1 August 2025 and 31 July 2026 have a maximum of £12,858. The loan is available to students under 60 on the first day of the course, ordinarily resident in England, taking a full master’s rather than a postgraduate certificate or diploma, and not already holding a master’s or higher qualification. Scotland, Wales and Northern Ireland run their own postgraduate schemes. The postgraduate loan calculator shows the repayment at any salary, alone or alongside an undergraduate loan.
Repaying alongside an undergraduate loan
| Salary | Postgraduate Loan, 6% over £21,000 | Plan 2 loan, 9% over £29,385 | Plan 5 loan, 9% over £25,000 | Total with Plan 2 | Total with Plan 5 |
|---|---|---|---|---|---|
| £25,000 | £240 | £0 | £0 | £240 | £240 |
| £30,000 | £540 | £55 | £450 | £595 | £990 |
| £40,000 | £1,140 | £955 | £1,350 | £2,095 | £2,490 |
| £50,000 | £1,740 | £1,855 | £2,250 | £3,595 | £3,990 |
The two loans are repaid at the same time, not one after the other, so a graduate with both pays 15% of income above the higher threshold. On £40,000 that is £2,095 a year with a Plan 2 undergraduate loan, or £175 a month taken through PAYE, and £2,490 with a Plan 5 loan. Repayments are based on income, not on the balance, so borrowing the full £13,206 rather than half of it changes only how long the repayments continue. The student loan repayment calculator works the monthly deduction for any combination of plans, and our student loan thresholds guide sets out every plan’s threshold and interest rate.
Interest and the write-off
Interest on the Postgraduate Loan is the Retail Prices Index plus 3%, charged from the day the first instalment is paid, which is a higher rate than any undergraduate plan. At 6% a £13,206 loan accrues about £790 of interest in its first year. Even so, repayments of 6% above £21,000 are small relative to the balance for most graduates, and a large proportion of borrowers will not clear the loan before the 30-year write-off; for them the interest rate is irrelevant and the loan functions as a 6% graduate tax above £21,000 for 30 years. Graduates on high salaries who will repay in full before the write-off are the only ones for whom the interest rate is a real cost, and the student loan overpayment calculator shows whether paying it down early makes sense.
What it will and will not cover
Fees for taught master’s courses at English universities commonly range from around £9,000 to £15,000 for home students and considerably more for business and medical subjects, so the £13,206 often covers the fee and little else, or falls short. There is no separate maintenance loan for postgraduates. Students fund living costs from savings, part-time work, employer sponsorship or university scholarships, and some universities offer alumni discounts of 10% to 20% on fees. The tuition total calculator totals fees and living costs for a course, and the which plan checker confirms the undergraduate plan the master’s loan will sit alongside.
Doctoral loans
A separate Postgraduate Doctoral Loan is available for PhD study, with a higher maximum spread across the course and the same 6% repayment above £21,000. A student cannot hold a Master’s Loan and a Doctoral Loan for the same course, and combined postgraduate repayments are capped at 6% of income above the threshold, so two postgraduate loans do not double the deduction.
Common questions
How much is the Postgraduate Master’s Loan for 2026/27? Up to £13,206 for courses starting on or after 1 August 2026, or £12,858 for courses that started between 1 August 2025 and 31 July 2026.
How is it repaid? At 6% of income above £21,000 a year, from the April after the course ends, alongside any undergraduate loan repayments. On £30,000 that is £540 a year.
Is the Master’s Loan means tested? No. The full amount is available to every eligible student regardless of household income.
What is the interest rate? RPI plus 3%, currently 6%, from the day of the first payment until the loan is repaid or written off.
Can I get a maintenance loan for a master’s? No. The Master’s Loan is a single contribution towards fees and living costs; there is no separate maintenance support for postgraduate study in England.
Is it written off? Yes, 30 years after the April in which repayments were first due, whatever the balance.
Information, not financial advice. The loan maximum, repayment threshold and rate are the published figures on gov.uk: Master’s Loan and gov.uk: repaying your student loan; worked repayments are from the site’s calculator. Course fees vary by university, so check the fee and eligibility with Student Finance England before acting on them.