Repayment of Postgraduate Loan

When repayments will start

Students have to repay any Postgraduate Loan they borrow, including the interest charged but not until they’ve finished or left their course and their income is over the repayment threshold which is currently £21,000 per year, £1,750 a month, or £404 a week, before tax and National Insurance.

The earliest they’ll start repaying their Postgraduate Loan is April 2019.

If they leave their course early they may need to repay any overpaid amount. The amount of loan which is overpaid will be exempt from the earning threshold and will be due as soon as possible.

Once their income is over the repayment threshold, they’ll repay 6% of their income above this.

The following table shows how much they’ll repay towards their Postgraduate Loan depending on their income.

Annual income (before tax)

Monthly salary

Monthly repayment

Up to £21,000

Up to £1,750

£0

£22,000

£1,833

£4

£23,500

£1,958

£12

£25,000

£2,083

£19

£27,000

£2,250

£30

£30,000

£2,500

£45

Interest

Interest is charged on a student’s Postgraduate Loan from the day we make the first payment until their loan is repaid in full or cancelled. Interest will be charged at the Retail Price Index (RPI)plus 3% .

If the student already has student loans

If the student already has a student loan, how much they repay will depend on when they started their undergraduate course.

If the student started their undergraduate course on or after 1 September 2012 (Plan 2)

Students will repay 9% of their income over £25,000 towards the student loans they borrowed for their undergraduate course and 6% of their income over £21,000 towards their Postgraduate Loan. This means they’ll repay 15% of their income over £25,000 in total.

Annual income (before tax)

Monthly repayment to your undergraduate loan

Monthly repayment to your Postgraduate Loan

Total monthly repayment

Up to £21,000

£0

£0

£0

£23,000

£0

£9

£9

£25,000

£0

£19

£19

£27,000

£15

£30

£45

£30,000

£37

£45

£82

If the student started their undergraduate course between 1 September 1998 and 1 September 2012 (Plan 1).

Students will repay 9% of their income over the repayment threshold, which is currently £18,330, towards the student loan they borrowed for their undergraduate course and 6% of their income over £21,000 towards their Postgraduate Loan.

Annual income (before tax)

Monthly repayment to your undergraduate loan

Monthly repayment to your Postgraduate Loan

Total monthly repayment

Up to £18,330

£0

£0

£0

£21,000

£20

£0

£20

£23,000

£42

£9

£51

£25,000

£50

£19

£69

£27,000

£65

£30

£95

£30,000

£87

£45

£132

If the student started their course before 1 September 1998

Students will continue to repay or defer the loans they borrowed for their undergraduate course and they’ll repay 6% of their income over £21,000 towards their Postgraduate Loan.

They can’t defer their Postgraduate Loan - repayments will stop automatically when their income is below the repayment threshold.



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