Answers · UK 2025/26

How much is my Postgraduate Loan repayment on a £25,000 salary?

On a £25,000 salary in 2026/27, a Postgraduate Loan repayment is £240 for the year (6% of the £4,000 above the £21,000 threshold), leaving take-home pay of £21,279.60 a year after Income Tax, National Insurance and the loan repayment -- about £1,773.30 a month.

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

Full answer

Postgraduate Loans, taken out for a Master's or eligible Doctoral course, are repaid at a lower rate than undergraduate plans -- 6% of income above a 2026/27 threshold of £21,000, compared with 9% for Plan 1, 2, 4 or 5. On a £25,000 salary, the amount above the threshold is £4,000, so the annual repayment is 6% of £4,000, which is £240, or £20 a month, deducted automatically through PAYE. The underlying Income Tax on £25,000 is £2,486 (20% of the £12,430 taxable after the £12,570 Personal Allowance) and National Insurance is £994.40 (8% of the same £12,430), so total deductions are £3,720.40, leaving take-home pay of £21,279.60 a year, around £1,773.30 a month. If you also have an undergraduate Plan 2 or Plan 5 loan running alongside a Postgraduate Loan, both are repaid simultaneously and independently -- there is no combined cap, so someone above both thresholds could see 15% (9% plus 6%) of income above the lower threshold deducted for student loans.