Repayment of Postgraduate Loan
You have to repay any loan you borrow, including the interest charged, but not until you’ve finished or left your course and your income is over the repayment threshold which is currently, £21,000 per year, £1,750 a month, or £404 a week.
The earliest you’ll start repaying your Postgraduate Loan is April 2019.
How much you’ll repay
Once your income is over the repayment threshold, you’ll repay 6% of your income above this.
- You earn £3,000 a month before tax. This is £1,250 over the monthly threshold of £1,750. You’ll repay £75 (6% of £1,250) each month.
- You earn £800 a week before tax. This is £396 over the weekly threshold of £404. You’ll repay £23 (6% of £396) each week.
If your income is below the repayment threshold, you won’t have to make any repayments.
If you have an undergraduate loan, you’ll repay this in addition to your Postgraduate Loan. The amount you pay back to your undergraduate loan depends on when you started your course and what you earn.
If you started your undergraduate course on or after 1 September 2012
You will repay a total of 15% of your income over £21,000.This is made up of 9% for your undergraduate loan, and 6% for your Postgraduate Loan.
If you started your undergraduate course between 1 September 1998 and 1 September 2012
You will repay 9% of your income over £17,775 (this amount changes on 6 April every year) towards your undergraduate loan and 6% of your income over £21,000 towards your Postgraduate Loan.
You’ll be charged interest from the day we make the first payment to you until the loan is repaid in full or cancelled. Interest will be charged at the Retail Price Index plus 3%. The current rate until 31st August 2017 is 4.6%.