Repayment of Postgraduate Doctoral Loan

When will repayments start

You have to repay any loan you borrow, including the interest charged, the April four years after the start of your course, or the April after you finish or leave your course, whichever comes first.

You’ll only repay when your 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.

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

If you leave your course early you 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.

How to work out your monthly repayment amount

Take away £21,000 from your annual salary before tax and National Insurance
Work out 6% of the remainder
Divide that figure by 12
Round down to the nearest pound

For example, if you were earning £30,000 per year:
30,000 – 21,000 = 9,000
6% of 9,000 = 540
540 / 12 = 45
Round down
So your monthly student loan repayment would be £45.

The following table shows how much you’ll repay towards your Postgraduate Loan depending on your income:

Annual income (before tax)Monthly salaryMonthly 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

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 RPI is reviewed in September every year - if it changes, the interest rate on the loan will change too.

If you already have a student loan

If you have a Postgraduate Master’s Loan then you’ll make a combined repayment of 6% which covers both Postgraduate Loans. Repayment of your Postgraduate Master’s Loan is not in addition to your Postgraduate Doctoral Loan.

If you have undergraduate student loans, these will be repaid in addition to your Postgraduate Doctoral Loan. The total you’ll repay depends on when you started your undergraduate course.

If you started your undergraduate course on or after 1 September 2012 (Plan 2)

You’ll repay 9% of your income over £25,000 towards the student loans you borrowed for your undergraduate course and 6% of your income over £21,000 towards your Postgraduate Loan. This means you’ll repay 15% of your income when you earn over £25,000.

Annual income (before tax)Monthly repayment to your undergraduate loanMonthly repayment to your Postgraduate LoanTotal 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 you started your undergraduate course between 1 September 1998 and 1 September 2012 (Plan 1)

You’ll repay 9% of your income over the repayment threshold, which is currently £18,330, towards the student loan you borrowed for your undergraduate course and 6% of your income over £21,000 towards your Postgraduate Loan. This means you’ll repay 15% of your income when you earn over £21,000.

Annual income (before tax)Monthly repayment to your undergraduate loanMonthly repayment to your Postgraduate LoanTotal 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 you started your course before 1 September 1998

You’ll continue to repay or defer the loans you borrowed for your undergraduate course and you’ll repay 6% of your income over £21,000 towards your Postgraduate Loan.

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



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