The Postgraduate Loan for Masters

UK citizens (or those with settled status) who normally live in England and are under 60 when their course starts can access a loan of up to £12,858 to fund their postgraduate study and associated living costs. This will increase to £13,206 for the 2026 - 2027 academic year. The UK postgraduate loan, as it's known, is provided by the UK government, via Student Finance England, to support students looking to study a Masters. The postgraduate loan can go towards both tuition fees and living costs. Repayments start once you're earning over £21,000 per year and are 6% of your income over that threshold.

So, you’ve decided to do a Masters? Great choice. More knowledge, better job prospects, and the undeniable joy of student discounts for a little longer. But let’s talk about the part that isn’t quite as exciting—funding it.

Today I'll be talking all things postgraduate loans. From the big headline details to the fine print, I've got you covered. However, if you're short for time - Taru does a fine job summarising the postgraduate loan in just 60 seconds in the video below.

What is a postgraduate loan?

A postgraduate loan (or Masters loan) is financial support from Student Finance England to help you cover the cost of a Masters degree. The money is paid directly to you, which means you can use it for tuition fees, rent, or even your over-reliance on flat whites—it’s entirely your call.

In 2025–26, the maximum you can borrow is £12,858. This amount will increase to £13,206 in 2026-2027. Repayments don’t begin until you’re earning over £21,000 a year, and if you still haven’t repaid it after 30 years, the outstanding balance is wiped. So, what I'm trying to say is - don't let the debt put you off. Only a small percentage of graduates will pay the loan off before it's wiped.

To qualify for the postgraduate loan, you need to tick a few boxes:

• Nationality and residency (UK) – Be a UK citizen (or have leave to remain) and normally live in England. You must also have been in the UK, Isle of Man, or Channel Islands for the last three years.
• Age – Under 60 when your course starts (sorry, mature students, they do cap it).
• Previous qualifications – You can’t already have a Masters or a higher qualification.

You may also be eligible for a loan if one of the following applies:

• You are an Irish national
• You or a family member have been granted refugee status or humanitarian protection in the UK
• You are 18 or over and have lived in the UK for at least 20 years and / or half of your life

Some non-UK students may also be eligible, including Irish nationals and those with refugee or humanitarian protection status. Not sure? The UKCISA website has more info.

If you live in Scotland, Wales, or Northern Ireland, you’ll need to apply through your own region’s funding body.

Applications for the postgraduate loan for the 2025/26 academic year are currently open. You can apply online through Student Finance England or by sending your application by post. You don't need to secure an offer from a university before you apply; however, you must clearly specify an eligible course in your application.

We have a full guide on applying for the UK Masters loan. And, would you look at that - there's a link.

Once your loan application is approved, payments are made directly to your bank account in three instalments per academic year. Here’s how the breakdown usually looks:

• First payment: At the start of your course (once your university confirms you’re actually attending).
• Second payment: Around four months in.
• Final payment: About seven months in.

Budget wisely—spending it all on a new wardrobe in week one may lead to some regrettable choices later.

• Not means-tested: one of the benefits of the postgraduate loan is that it's not means-tested, meaning your income or savings don't affect your eligibility or the amount you can borrow. Everyone can access the same funding regardless of their financial situation.
• Flexibility: you're not required to take the maximum amount available. You can choose to borrow anything between £1 and £12,858 based on your specific needs and circumstances.

Repayments start the April after you finish your Masters, but only if you’re earning above £21,000 a year. When that happens, you’ll pay 6% of whatever you earn over that threshold.

For example, if you earn £25,000 a year:

• You’re £4,000 over the threshold.
• 6% of £4,000 = £240 a year.
• That’s just £20 a month—barely the cost of a Netflix subscription (unless you’re still using someone else’s login).

If you’re employed, repayments are deducted automatically from your salary. If you’re self-employed, you’ll pay through your annual tax return.

Need more than the postgraduate loan offers? You’re not alone. Thankfully, there are options beyond taking up part-time bar work:

• Scholarships and bursaries: Additional funding that you won't have to repay. They're usually very competitive, though.

• University funding: Some institutions offer grants for specific courses or backgrounds.

• Charities and trusts: Particularly for niche subjects or underrepresented groups.

• Employer sponsorship: Worth asking—especially if your Masters aligns with your job.

• Don’t borrow more than you need: Just because you can take the full £12,858 doesn’t mean you have to. Be realistic about your budget.
• Budget for the year: Remember, payments come in three chunks—not monthly.
• Consider extra funding: Scholarships and bursaries exist, and free money is always better than loan money.
• Repayments are manageable: If you’re stressing about debt, remember: it’s a small percentage of your income, and if you never earn enough, you won’t repay it anyway.

Getting a Masters degree isn’t just about the things you’ll learn; it can open doors to career opportunities and allow you to develop a variety of skills. Understanding how to fund your educational journey is a critical part of your planning process. The postgraduate loan provided by the UK government aims to make higher education financially more accessible, ensuring that finances don't become a roadblock.

If you have any more questions about postgraduate loans or wish to receive updates on funding options, consider subscribing to our newsletter for expert tips and guidance sent directly to your inbox.

Remember that the postgraduate student loan isn't the only way to pay for a Masters. There are a range of other funding options available. We also have a variety of other funding guides to answer all your burning questions.

Frequently asked questions

We've answered some common questions about repaying a postgraduate loan.