Repayment of Postgraduate Loan

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.

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

How repayments are calculated

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

For example:

  • The student earns £3,000 a month before tax. This is £1,250 over the monthly threshold of £1,750. They’ll repay £75 (6% of £1,250) each month.
  • The student earns £800 a week before tax. This is £396 over the weekly threshold of £404. They’ll repay £23 (6% of £396) each week.

If their income is below the repayment threshold, they won’t have to make any repayments.

If the student has any undergraduate loans in repayment, they will repay this in addition to their Postgraduate Loan.

For example, if a student has a Postgraduate Loan and also an undergraduate loan which they took out after 1998, a total of 15% will be deducted once their income is over the weekly and monthly repayment thresholds for these loans. This is based on a deduction of 9% for their undergraduate loan, and 6% for their Postgraduate Loan.


Interest will be applied to the Postgraduate Loan balance from the day the first payment is made to the student until the loan is repaid in full or cancelled. Interest will be charged at the Retail Price Index (RPI) plus 3%. The current rate until 31st August 2017 is 4.6%.

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