Answers · UK 2025/26
How much do I repay on a postgraduate Master's loan in 2026/27?
You repay 6% of any income above GBP 21,000 a year on the Postgraduate Loan plan in 2026/27. That is roughly GBP 60 per GBP 1,000 earned over the threshold. It runs alongside any undergraduate plan (Plan 1, 2 or 5), so both deductions can apply at once from the same payslip.
Full answer
The Postgraduate Loan (PGL) covers Master's and doctoral study and repays differently from undergraduate loans. For 2026/27 the repayment threshold is GBP 21,000 a year and the rate is 6% of income above that figure. This is separate from the 9% charged on Plan 1 (GBP 26,900), Plan 2 (GBP 29,385) and Plan 5 (GBP 25,000). If you hold both an undergraduate loan and a postgraduate loan, both are collected together through PAYE, so you can lose 9% plus 6% (15%) on the slice of income above whichever thresholds you cross. Worked example: you earn GBP 33,000 and have only a PGL. Income above GBP 21,000 is GBP 12,000, and 6% of that is GBP 720 a year, about GBP 60 a month. Add a Plan 5 undergraduate loan and you would also pay 9% on income above GBP 25,000 (GBP 8,000 x 9% = GBP 720), so GBP 1,440 a year combined. Repayments are income-contingent, not balance-driven: what you owe makes no difference to the monthly amount, only your earnings do. Deductions stop automatically when income drops below the threshold. The loan is written off a set number of years after you become liable to repay, and any remaining balance at that point is cancelled. PGL repayments do not attract tax relief and sit on top of Income Tax and National Insurance. The self-employed pay through Self Assessment instead of PAYE. Use the student loan calculator to model your exact monthly deduction across combined plans, and remember the thresholds are reviewed each April.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.