Postgraduate Loan
A student loan available to UK residents studying a postgraduate master's or doctoral course, repaid through payroll deductions at 6% of income above the postgraduate repayment threshold (£21,000 per year). Postgraduate Loan repayments run alongside any undergraduate student loan repayments, so a borrower with both a Plan 2 and a Postgraduate Loan could face combined deductions of 15% on qualifying income. The loan is provided by the Student Loans Company and written off after 30 years.
How it works
The Postgraduate Loan is administered entirely separately from undergraduate loan plans, even though repayments are collected the same way — through PAYE for employees, using a separate deduction line on your payslip, or through Self Assessment for the self-employed.
Because it runs alongside any undergraduate loan rather than replacing it, someone with both a Plan 2 loan and a Postgraduate Loan sees two distinct deductions calculated independently, each against its own threshold, rather than one combined figure.
Unlike Plan 4, which applies specifically to Scottish undergraduate borrowers, the Postgraduate Loan threshold and rate apply UK-wide regardless of where you studied or currently live.
Example: Postgraduate Loan repayments on a £30,000 salary
Income above the £21,000 threshold is £30,000 − £21,000 = £9,000.
The repayment is 6% of that excess: £9,000 × 6% = £540 for the year.
Spread evenly through payroll, that's about £45 deducted each month.
Frequently asked questions
Can I have an undergraduate and postgraduate loan at the same time?
Yes, repayments run alongside each other and are deducted separately, so a borrower with both a Plan 2 loan and a Postgraduate Loan sees two deductions on the same payslip.
Does the Postgraduate Loan threshold change for Scottish borrowers?
No, the threshold applies UK-wide regardless of where you studied or live, unlike Plan 4 which is specifically the Scottish undergraduate plan.
How is it repaid if I'm self-employed?
Both undergraduate and Postgraduate Loan repayments are calculated together on your Self Assessment return, based on your profits above the relevant thresholds for that tax year.
Related Terms
Student Loan Plan 1
The earliest student loan repayment plan, applicable to UK students who took out their first loan before 1 September 2012.
Student Loan Plan 2
The repayment plan for students who started an undergraduate course in England or Wales from 1 September 2012 onwards.
Student Loan Plan 4
The repayment plan for Scottish students who took out their first student loan on or after 1 September 1998 under the Student Awards Agency for Scotland.
Student Loan Plan 5
The newest undergraduate repayment plan, applying to students starting courses in England from 1 August 2023 onwards.
Repayment Threshold
The level of annual income above which you must start making student loan repayments, which differs depending on your loan plan.
SLC
The Student Loans Company — the government-owned company that administers student loans in the UK, including issuing funds to students, collecting repayments through payroll (via HMRC), and managing loan balances.
Try the calculator
Use our free tool to see how postgraduate loan affects your tax.