Postgraduate Student Loans Guide UK (Master's, Doctoral 2026)

Postgraduate Master's Loan (Amount, Eligibility, Applying)

The Postgraduate Master's Loan is available for full-time and part-time Master's degrees (including MBA, MRes, MFA, and integrated Master's). In 2026/27, you can borrow up to £12,471 — the maximum loan amount regardless of course fees. The loan is paid directly to you in three instalments (usually one per term) and you can use it for tuition fees, living costs, or both. Eligibility: you must be under 60 (no upper age limit for part-time); be a UK national or have settled status; have lived in the UK, Channel Islands, or Isle of Man for 3 years before the course; and not already hold a Master's-level qualification (unless your chosen course is a condition of professional development). The loan is not means-tested — your household income does not affect how much you get. You apply online at gov.uk — you need your university details, course details, and a passport or other identity document. Applications open in the spring for courses starting in September 2026. The Student Loans Company (SLC) administers the loan and pays your university the tuition fee element if you request it, or pays all the funds to you. See Undergraduate Loans Guide for more on student finance.

Postgraduate Doctoral Loan (Amount, Eligibility, Applying)

The Postgraduate Doctoral Loan supports the costs of Doctoral degrees (PhD, professional doctorates like EdD, DBA, DEng, and integrated PhDs). In 2026/27, you can borrow up to £28,673 over the whole duration of your course, spread across the years of study (maximum 8 years). The maximum per year is capped. The loan covers both fees and living costs. Eligibility: you must be under 60 (or 60 for part-time); meet the same residency criteria as the Master's loan; not already hold a Doctoral-level qualification; and your course must be a recognised UK doctoral programme (typically 3-8 years). Your university must be a UK provider registered with the Office for Students or equivalent body in Scotland, Wales, or Northern Ireland. The loan application process is similar to the Master's loan — apply online at gov.uk. The loan is not means-tested. You can also apply for the Doctoral loan if you are studying a professional doctorate (e.g., Doctor of Education, Doctor of Business Administration). You cannot receive both a Master's and Doctoral loan simultaneously. Part-time study is available — the loan is spread over your course duration. See Student Budgeting Guide for managing finances during postgraduate study.

Repayment Rules and Thresholds

Postgraduate loans are repaid through the UK tax system — deductions come directly from your salary via PAYE (like undergraduate loan repayments). Key repayment rules for the 2026/27 tax year:

• Repayment threshold: £21,000 per year (£1,750 per month, £404 per week) — only on earnings above this level
• Repayment rate: 6% of your income above the threshold
• Interest rate: RPI + 3% (currently around 7-8% depending on RPI inflation)
• You repay alongside any undergraduate Plan 2 repayment (9% above £27,295) — meaning your combined deduction is 9% (undergrad) + 6% (postgrad) = 15% of income above the undergraduate threshold
• Self-employed — repayments are collected through your Self Assessment tax return
• Written off after 30 years — any remaining balance is cancelled
• If you stop working, repayments stop — no need to make voluntary payments
• You can make voluntary overpayments to clear the loan faster — but consider whether this is the best use of your money compared to investing (see Investing Guide)

Interest Rates on Postgraduate Loans

Postgraduate loan interest rates are set at RPI (Retail Prices Index) + 3%. The rate is fixed for each tax year. In 2026/27, with RPI around 4-5%, the interest rate is approximately 7-8%. This is higher than undergraduate Plan 2 loans (which have variable rates from RPI to RPI+3% depending on income). The interest accrues from the day the loan is first paid to you — it capitalises (adds to your balance) while you are studying and continues while you are repaying. Because the interest rate is high relative to other borrowing, postgraduate loans can grow quickly if your income is below the repayment threshold. However, the loan is written off after 30 years, so if your career earnings are low, you may never repay the full amount — the real cost depends on your future income. Unlike commercial loans, there is no penalty for taking a long time to repay, and no credit score impact. Consider the effective interest rate carefully when deciding whether to take the loan — if you expect high earnings after graduation, the 6% repayment on income over £21,000 could mean paying back significantly more than you borrowed. See Undergraduate Loans Guide for more on interest rate comparisons.

How Postgraduate Loans Affect Mortgage Applications

Postgraduate loan repayments reduce your disposable income, which can affect your mortgage affordability. Mortgage lenders assess your monthly outgoings, including student loan repayments, to calculate how much they will lend you. The 6% repayment on income above £21,000 is deducted from your salary before you receive it — lenders factor this into their affordability calculations. For example, if you earn £40,000, your monthly postgraduate loan repayment is approximately (£40,000 - £21,000) x 6% / 12 = £95 per month — this £95 is not available to put towards a mortgage. Combined undergraduate and postgraduate repayments at £40,000 would be around £190/month (undergrad) + £95/month (postgrad) = £285/month. Some lenders treat student loan repayments differently — some use a fixed deduction (e.g., £150/month) regardless of actual repayment amount, while others use the actual deduction. This means having a postgraduate loan can reduce your maximum mortgage by around £20,000-£40,000 depending on the lender's criteria. If you are planning to buy a home, minimise your borrowing where possible or consider clearing the loan before applying for a mortgage. See Mortgage Guide for more on mortgage affordability.

Postgraduate Loan vs Self-Funding vs Employer Sponsorship

Before taking a postgraduate loan, consider whether it is the best option for your circumstances. Self-funding — if you have savings or can work while studying, avoiding the loan saves you interest and the 6% repayment burden. Part-time study while working is increasingly popular. Employer sponsorship — many employers offer tuition fee reimbursement for relevant Master's degrees, especially MBAs, specialist Master's in finance, data science, or engineering. An employer-sponsorship agreement typically requires you to stay with the company for 1-3 years after completing the course. Postgraduate loan — the main advantage is that you do not need to pay anything upfront, and if your career earnings are modest, the loan is written off after 30 years. The disadvantages are the high interest rate and the 30-year repayment term. Scholarships and bursaries — many universities offer merit-based scholarships, needs-based bursaries, or subject-specific funding. Check with your university's postgraduate funding office. Research council funding (UKRI) is available for some PhD programmes — these cover fees and provide a tax-free stipend (around £19,000-£22,000 in 2026/27). Combining a partial scholarship with a postgraduate loan can reduce your borrowing. See Student Budgeting Guide for more on funding strategies.

FAQs

How much can I borrow for a Master's degree?

Up to £12,471 in 2026/27, regardless of course fees. The loan is not means-tested — your household income does not affect eligibility.

When do I start repaying a postgraduate loan?

Repayments start the April after you finish or leave your course, once your income exceeds £21,000 per year. Payments are taken automatically via PAYE from your salary.

Does a postgraduate loan affect my undergraduate loan?

They are separate loans with separate repayment thresholds. You repay 9% on income over £27,295 (Plan 2 undergrad) plus 6% on income over £21,000 (postgrad) — total 15% on earnings above £27,295.

Can I get a postgraduate loan if I already have a Master's?

No — you cannot get a second postgraduate Master's loan unless the course is a compulsory requirement for professional development (e.g., a teaching conversion course). Similar rules apply for Doctoral loans.

How does a postgraduate loan affect my credit score?

A postgraduate loan is a government loan and does not appear on your credit report. It does not affect your credit score or show up on mortgage affordability checks as debt — but it does affect your disposable income.