Answers · UK 2025/26
What is my take-home pay on £48,000 with both a Plan 2 loan and a Postgraduate Loan in 2026/27?
On £48,000 in 2026/27 with both a Plan 2 student loan and a Postgraduate Loan, you pay £7,086 Income Tax, £2,834.40 National Insurance, £1,675.35 Plan 2 repayment and £1,620 Postgraduate Loan repayment, leaving £34,784.25 take-home pay -- about £2,898.69 a month.
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Graduates who completed a Master's or similar postgraduate course after an undergraduate degree can end up repaying two student loans simultaneously -- their original undergraduate plan and a separate Postgraduate Loan -- each calculated independently against its own threshold and rate. On a £48,000 salary in 2026/27, taxable income of £35,430 gives £7,086 Income Tax (20% basic rate), and National Insurance is 8% of the same amount, £2,834.40, leaving £38,079.60 before student loan repayments. The Plan 2 undergraduate loan is repaid at 9% of income above the £29,385 threshold: 9% of £18,615 is £1,675.35. The Postgraduate Loan is repaid at 6% of income above a separate, lower £21,000 threshold: 6% of £27,000 is £1,620. Both repayments are deducted simultaneously through PAYE, giving combined student loan deductions of £3,295.35 for the year. This leaves take-home pay of £34,784.25, around £2,898.69 a month -- £3,295.35 less than the £38,079.60 someone with no student loans would keep on the same salary. Having both loans running together effectively adds 15% (9% plus 6%) on top of ordinary Income Tax and National Insurance for the portion of income above £29,385, which is a substantial combined deduction that catches many postgraduate-qualified professionals by surprise when they first see their payslip after finishing their Master's.
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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.