# Postgraduate Master's loan UK explained

> Students & young adults · Last updated 4 July 2026

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## Quick answer

English-resident students can borrow up to £12,471 for a Master's course — repaid at 6% above threshold alongside undergraduate Plan 2 or 5 loans if applicable.

Postgraduate loans are separate from undergraduate plans with their own repayment threshold and interest rate. Scottish and Welsh rules differ from England. This guide explains repayment and how a Master's loan interacts with existing undergraduate debt.

## Key facts

- Maximum £12,471 for eligible full-time or part-time Master's courses at UK providers
- Repayment 6% on earnings above £21,000 threshold — Plan 3 postgraduate loan type
- Paid alongside undergraduate loan repayments — combined marginal rate can exceed 20% on slice of income
- Interest RPI plus 3% during study then linked to income after — check SLC for current rate

## Eligibility

You must be normally resident in England to qualify for the English postgraduate loan. Wales and Scotland operate devolved postgraduate support schemes with different limits and rules.

There is no upper age limit, but you may be disqualified if you already hold an equivalent Master's qualification from a previous course. Check eligibility if you have a postgraduate qualification already.

## Repayment interaction

Plan 2 undergraduate repayments at 9% plus postgraduate repayments at 6% mean a 15% marginal rate on earnings between both thresholds. Budget carefully when you start work with both loans active.

The postgraduate loan is written off 30 years after the April following your course start date if still unpaid. The write-off period is separate from your undergraduate loan.

## Alternatives

Employer sponsorship, scholarships and PhD funding may beat borrowing if available for your field. Compare the career uplift from the qualification against the debt you would carry.

Part-time study while working spreads the cost and reduces the need to borrow the maximum loan amount each year. Part-time students receive a lower loan proportionally over a longer study period.

## Frequently asked questions

### Can I get a postgraduate loan for a PhD?

Doctoral loans are a separate product with different limits. The Master's loan is for taught Master's courses only, not research doctorates.

### Does postgraduate loan affect mortgage applications?

Lenders include student loan repayments in affordability checks. The 6% above-threshold repayment reduces borrowing capacity slightly compared with having no postgraduate loan.

### Is interest charged during study?

Yes — interest accrues while you are studying. Repayments start only after your income exceeds the postgraduate threshold following graduation.

## Primary source

https://www.gov.uk/masters-loan

## Related

- [Student loan repayment explained](https://moneyguide.org.uk/students/student-loan-repayment-explained/)
- [Plan 2 vs Plan 5 loans](https://moneyguide.org.uk/students/plan-2-vs-plan-5-loans/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.