Postgraduate loan repayment calculator
See what a Master's or Doctoral Loan takes from your pay: 6% of income above £21,000. If you also have an undergraduate Plan 2 or Plan 5 loan, tick it and the tool adds both deductions together.
How the postgraduate deduction works
A Postgraduate Loan is repaid at 6% of your income above the £21,000 threshold, not on your whole salary and not as a fixed instalment. Earn under the threshold and you pay nothing. The rate is lower than the 9% on undergraduate plans, but the threshold is lower too, so repayments start at a more modest salary.
If you also hold an undergraduate loan, the two run side by side. You pay 9% on income over the undergraduate threshold and 6% on income over £21,000, both taken from the same pay through PAYE. That is why a graduate with both loans can see a noticeable combined deduction even on a moderate salary. Your outstanding balance does not change the monthly figure, only how long you keep paying.
Worked example
Take a £34,000 salary. Income over the £21,000 postgraduate threshold is £13,000, and 6% of that is £780 a year, about £65 a month. Add a Plan 2 undergraduate loan and another 9% comes off everything over its threshold, taking the combined deduction to £100 a month, an effective 3.5% of the salary.
Common questions
How much is the postgraduate loan repayment?
You repay 6% of everything you earn above £21,000 a year. On a £34,000 salary that is about £65 a month for the Postgraduate Loan alone. Below the threshold you repay nothing.
Do I pay the postgraduate loan on top of my undergraduate loan?
Yes. The Postgraduate Loan is a separate deduction. If you also have a Plan 2 or Plan 5 undergraduate loan, you pay 9% over that plan’s threshold and 6% over the £21,000 postgraduate threshold at the same time, both from the same income.
Why is the postgraduate threshold lower than the undergraduate one?
The Postgraduate Loan has its own rules, with a lower £21,000 start point but a lower 6% rate rather than 9%. It means repayments begin at a lower salary, but each pound over the threshold is taken more gently than on an undergraduate plan.
When does the postgraduate loan get written off?
A Postgraduate Loan is normally written off 30 years after the April you were first due to repay, whatever is left. As with undergraduate loans, many people never clear the full balance, so the monthly deduction matters more than the headline debt.
Is the postgraduate deduction taken through my payslip?
Yes, through PAYE alongside tax, National Insurance and any undergraduate loan. If you are self-employed it is collected through Self Assessment instead. Either way it is worked out on income over the threshold, not on the size of your debt.