Glossary · UK
What is Postgraduate Loan?
A UK student loan for master's or doctoral study, repaid at 6% of income above GBP 21,000 a year and collected alongside any undergraduate loan.
Full Definition
A Postgraduate Loan helps fund master's or doctoral courses in the UK. Unlike undergraduate loans, it is a contribution towards course and living costs rather than separate tuition and maintenance loans. Repayment is income-contingent: for 2026/27 you repay 6% of earnings above the threshold of GBP 21,000 a year, collected through PAYE or Self Assessment. Crucially, a Postgraduate Loan is repaid at the same time as any undergraduate plan (Plan 1, 2 or 5), so a borrower with both can pay 9% above their undergraduate threshold plus 6% above GBP 21,000 on the relevant slices of income. Interest applies, and any balance outstanding after the set repayment period is written off. This matters because the combined deductions noticeably reduce take-home pay for graduates with both loan types, so factoring it into salary and budgeting decisions is important. Check exact terms on gov.uk for your loan.