Postgraduate loan repayment calculator
A Postgraduate Loan is repaid at 6% of income above £21,000 a year, under the gov.uk student loan repayment rules. Income under the threshold means no repayment. A separate Plan 2 or Plan 5 undergraduate loan is repaid at 9% over its own threshold at the same time, from the same pay through PAYE or Self Assessment.
How much is the postgraduate loan repayment?
Per gov.uk, a Postgraduate Loan is repaid at 6% of income above the £21,000 threshold, not on the whole salary and not as a fixed instalment. Income under the threshold means no repayment is due. The rate is lower than the 9% used on undergraduate plans, but the threshold is lower too, so repayments can start at a more modest salary.
A borrower who also holds an undergraduate loan repays both at the same time. Per gov.uk, 9% is due on income over the undergraduate threshold and 6% on income over £21,000, both taken from the same pay through PAYE. That is why a graduate with both loans can see a noticeable combined deduction even on a moderate salary. The outstanding balance does not change the monthly figure, only how long repayment continues.
How much would someone earning £34,000 with a Plan 2 loan repay?
Take a £34,000 salary. Income over the £21,000 postgraduate threshold is £13,000, and 6% of that is an estimated £780 a year, about £65 a month. Adding a Plan 2 undergraduate loan brings a further 9% on everything over its own threshold, taking the combined estimated deduction to £100 a month, an effective 3.5% of the salary.
Common questions
How much is the postgraduate loan repayment?
You repay 6% of everything you earn above £21,000 a year. On a £34,000 salary that is about £65 a month for the Postgraduate Loan alone. Below the threshold you repay nothing.
Do I pay the postgraduate loan on top of my undergraduate loan?
Yes. The Postgraduate Loan is a separate deduction. If you also have a Plan 2 or Plan 5 undergraduate loan, you pay 9% over that plan’s threshold and 6% over the £21,000 postgraduate threshold at the same time, both from the same income.
Why is the postgraduate threshold lower than the undergraduate one?
The Postgraduate Loan has its own rules, with a lower £21,000 start point but a lower 6% rate rather than 9%. It means repayments begin at a lower salary, but each pound over the threshold is taken more gently than on an undergraduate plan.
When does the postgraduate loan get written off?
A Postgraduate Loan is normally written off 30 years after the April you were first due to repay, whatever is left. As with undergraduate loans, many people never clear the full balance, so the monthly deduction matters more than the headline debt.
Is the postgraduate deduction taken through my payslip?
Yes, through PAYE alongside tax, National Insurance and any undergraduate loan. If you are self-employed it is collected through Self Assessment instead. Either way it is worked out on income over the threshold, not on the size of your debt.
How much would someone earning £34,000 with a Plan 2 loan repay?
On a £34,000 salary, income over the £21,000 postgraduate threshold is £13,000, and 6% of that is about ££780 a year, roughly ££65 a month, per gov.uk. Adding a Plan 2 undergraduate loan brings a further 9% on income over its own threshold, taking the combined estimated deduction to about ££100 a month, an effective 3.5% of salary. The exact deduction depends on the employer's payroll calculation, so this figure is an estimate only.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.