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Postgraduate Loan Repayment Details Across the UK
Written by Vincent Hedman
In England and Wales postgraduate loan repayments are 6% of what you earn above £21,000 a year, while Scottish repayments are 9% of your income above £31,395 and Nothern Irish repayments are 9% of your earnings above £24,990.
If you’re curious about how postgraduate loan repayments work after you finish your studies in the UK, you’re in the right spot! I’ll explain everything you need to know, starting with the basics of how repayments are set up.
I’ll also share a helpful postgraduate loan repayment calculator to help you see what to expect. Plus, I’ll give you some examples of repayments to make it all clearer. If you have questions, don’t worry—I’ve included a section for frequently asked questions to help you out. Let’s jump in and make sure you feel ready to manage your repayments!
On this page
Postgraduate loan repayments work very similarly to undergraduate loans.
You will be borrowing money from the Government to pay for your Masters. This must be repaid after you graduate, but terms are designed to make sure this process is always manageable.
In order to do this, student loans work differently to bank loans (from commercial lenders).
Key details
Repayments for all UK postgraduate loans are subject to the following conditions:
- Your postgraduate loan repayment is income-contingent. The amount you repay will be based on the amount you currently earn over a set threshold. You will only make repayments when you are earning enough.
- You will repay undergraduate and postgraduate loans at the same time. This may involve two concurrent repayments, or one repayment towards a combined balance.
- Interest charged on your loan will normally be linked to inflation.
- You will become eligible to repay your loan in the April after your course ends but will only ever do so if you are earning enough.
- There is no postgraduate loan repayment deadline. You will simply make income-contingent repayments until your balance is cleared or your debt is cancelled. This happens once a certain number of years elapse from when you are eligible to begin repayments, regardless of how much you have left to repay.
Some more specific postgraduate loan repayment details differ for individual schemes. This table provides a simple comparison:
| Country | Threshold | Rate | Interest | UG loan | Cancelled |
|---|---|---|---|---|---|
| England | £21,000 | 6% | RPI+3% (4.5%) | Separate | After 30 years |
| Wales* | £21,000 | 6% | RPI+3% (4.5%) | Separate | After 30 years |
| Scotland | £31,395 | 9% | 2.75%** | Combined | After 30 years |
| Northern Ireland | £24,990 | 9% | 1.5%** | Combined | After 25 years |
*As of 2019, Wales offers a combination of means-tested postgraduate grants and loans. The information in this guide refers to the postgraduate loan segment (the part you will repay). The repayment system is the same as it was for Welsh postgraduate loans in previous years.
**Postgraduate loans in Scotland and Northern Ireland use the same 'Plan 4' and 'Plan 1' student loan repayment system as their undergraduate loans. If you have both undergraduate and postgraduate loans under these systems, your debts will be combined.
This information is based on current guidelines issued by UK student finance organisations. For more information on the way individual loan schemes work, check out our full guides to postgraduate loans.
You can also jump to the list of frequently asked questions (FAQs) at the end of this page, if you have a more specific query about the postgraduate loan repayment.
Student story - How I manage my money as a postgraduate student at UWE Bristol
Opeyemi, a current MSc International Management student, provides helpful tips for funding a postgraduate degree that may just ease the finance burden for you whilst you study in the UK.
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Our postgraduate loan repayment calculator can provide a quick estimate for your repayments. Simply select the country you'll be receiving a postgraduate loan from and input your salary. The calculator will then work out the approximate value of your monthly repayment.
How does the postgraduate loan repayment calculator work?
Our Masters loan calculator subtracts the repayment threshold for your loan from your suggested salary. This gives the portion of your earnings your repayments will be based on.
The postgraduate loan repayment calculator then divides this amount by the repayment % for your loan to work out how much you will repay in a year. Finally, it divides this result by 12 to give the typical monthly repayment amount that would be automatically deducted from your salary by HMRC.
This result is only an estimate for typical monthly repayments. If your salary changes from month-to-month (due to overtime, bonuses or other fluctuations) your repayments will too.
Also, the postgraduate loan repayment calculator does not include other deductions from your salary such as Income tax or National Insurance or separate undergraduate repayments (for English and Welsh loans).
The calculator above is a handy way to check monthly deductions for specific salaries, but what if you want to get a more general sense of what your postgraduate loan repayments could look like?
The tables below can help. They give approximate annual, monthly and weekly repayment figures for different salaries.
The first table is for England and Wales which use the same system of repayments at 6% of annual earnings over £21,000 (or the monthly / weekly equivalent):
| Annual salary | Annual repayment | Monthly repayment | Weekly repayment |
|---|---|---|---|
| £20,000 | £0 | £0 | £0 |
| £25,000 | £240 | £20 | £4.50 |
| £30,000 | £540 | £45 | £10 |
| £35,000 | £840 | £70 | £16 |
| £40,000 | £1,140 | £95 | £21.50 |
| £45,000 | £1,440 | £120 | £27.50 |
| £50,000 | £1,740 | £145 | £33 |
| These are approximate figures calculated by working out an annual repayment value and then dividing it by 12 or 52 for monthly or weekly repayments. All values have been rounded down to the nearest £0.50. | |||
Remember that English and Welsh postgraduate loans aren't combined with undergraduate loans. This means you may have an extra repayment to make in addition to those above.
Scotland uses the Plan 4 system (the same system as Scottish undergraduate loans). This calculates repayments at 9% of annual income above £31,395.
| Annual salary | Annual repayment | Monthly repayment | Weekly repayment |
|---|---|---|---|
| £20,000 | £0 | £0 | £0 |
| £25,000 | £0 | £0 | £0 |
| £30,000 | £0 | £0 | £0 |
| £35,000 | £324.45 | £27.00 | £6.20 |
| £40,000 | £774.45 | £64.50 | £14.50 |
| £45,000 | £1,224.45 | £102.00 | £23.50 |
| £50,000 | £1,674.45 | £139.50 | £32.00 |
| These are approximate figures calculated by working out an annual repayment value and then dividing it by 12 or 52 for monthly or weekly repayments. All values have been rounded down to the nearest £0.50. | |||
Northern Ireland uses the Plan 1 system which currently calculates repayments at 9% of annual earnings over £24,990 (or the monthly / weekly equivalent). You don't need to worry about the differences between repayment systems (or their names). Just make sure you're looking at the right one for your loan.
| Annual salary | Annual repayment | Monthly repayment | Weekly repayment |
|---|---|---|---|
| £25,000 | £0.90 | £0.00 | £0.00 |
| £30,000 | £450.90 | £37.50 | £8.50 |
| £35,000 | £900.90 | £75.00 | £17.00 |
| £40,000 | £1,350.90 | £112.50 | £25.50 |
| £45,000 | £1,800.90 | £150.00 | £34.50 |
| £50,000 | £2,250.90 | £187.50 | £43.00 |
| These are approximate figures calculated by working out an annual repayment value and then dividing it by 12 or 52 for monthly or weekly repayments. All values have been rounded down to the nearest £0.50. | |||
As you can see, repayments are higher for Northern Irish loans due to the lower threshold and higher repayment rate. This is partially offset by the fact that these repayments include your undergraduate loan (if you have one).
Check with student finance
The information on this page summarises the current repayment terms and provides approximate examples of what you might end up repaying.
We do our best to keep things up to date, but we recommend you also check the UK Government's own student loan repayment page to ensure you have the very latest information.
This page should hopefully make it easier to understand how postgraduate repayments work - and what their effect could be on your future salary.
It’s absolutely right to think carefully and responsibly about any loan commitments, for any purpose. Hopefully this information helps you make the decision about whether a postgraduate loan is right for you.
For more general information, see our detailed guides to Masters loans in England, Wales, Scotland and Northern Ireland. You can also read more about the UK doctoral loans.
Please note that the resources on this page are provided in good faith, based on current information on postgraduate loan repayments.
We recommend that you always check the latest guidelines from UK postgraduate loan providers:
- Student Finance England
- Student Finance Wales
- Student Awards Agency Scotland
- Student Finance Northern Ireland
You can also sign up to our newsletter to be informed of changes and updates to postgraduate loans and other Masters funding.
Tips from the author
- Budget for repayments: Make sure to factor your loan repayments into your budget. By setting aside a bit of money each month, you’ll make it much easier to handle your finances when the time comes to start paying it back. It’s all about staying ahead of the game!
- Set up a direct debit: Think about setting up a direct debit for your loan repayments. It’s super convenient because you won’t have to worry about missing a payment, plus it helps you keep your cash flow in check. Easy peasy!
- Track your progress: Make it a habit to regularly check your loan balance and how much you’ve paid off. Keeping an eye on your progress can really motivate you and help you stay on top of things!
Got an additional question about repaying your Masters loan? We've answered some common queries about repayment processes, terms and conditions.
How will postgraduate loan repayments be taken?
Repayments will only ever be taken whilst you are earning over your threshold. The way this happens will depend on the kind of work you do:
- If you are employed your repayments will be deducted automatically from your monthly salary and paid to HMRC by your employer.
- If you are self-employed you will make repayments as part of your annual Self Assessment tax return.
However you pay, you will receive an annual statement of your loan balance. This will record your repayments and interest.
What happens if I temporarily earn above the repayment threshold?
You will be due to make repayments whenever you earn over the threshold in a given repayment period. This means that overtime, a bonus or additional temporary work could make you eligible for repayments in a particular month, even if your regular earnings are below your threshold.
For example: if you had an English postgraduate loan and earned £20,000 a year, you would not normally make monthly repayments. Your monthly salary would be approximately £1,666. This is below the monthly repayment threshold of £1,705 (the monthly equivalent of £21,000).
But, if you earned worked overtime in that month and made an extra £200, you would make a postgraduate loan repayment. This is because your total monthly earnings would now be £1,866. In this scenario your employer would deduct £9 for your loan (6% of £161 - your earnings above the monthly threshold).
Assuming your earnings returned to normal next month, you would not make a further postgraduate loan repayment. If your total earnings for the year were eventually still below the annual repayment threshold you would also be able to claim back any overpaid postgraduate loan repayments.
Can I make additional repayments?
Yes. If you wish to pay off your postgraduate loan sooner, you can make extra payments towards your balance. These could be one-off contributions, a monthly plan, or a repayment of your balance in full.
Note that these payments will be made on top of your income-contingent deductions. In some cases they may also incur small administrative charges.
What happens if I miss a repayment?
Normally, you won't need to worry about missing postgraduate loan repayments. The income-contingent system means they are taken automatically whenever you are earning enough.
However, it's possible that you could miss payments if you receive undeclared income, in the UK or abroad. If this is the case you should contact your loan provider to avoid entering arrears.
What happens if I don't finish my course?
You will still be eligible to repay any postgraduate loan you have received, even if you 'drop out of' your Masters or fail to earn your degree.
If you do leave your course early it is important that you notify your student finance provider. If you do not do so, any further (incorrect) payments to you may be regarded as overpayments. Repayment of these extra amounts may not be income-contingent (and may be expected more promptly as a result).
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