What is a postgraduate loan?
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What is a postgraduate loan?
A postgraduate loan is a type of student loan, but one that's designed for students doing a masters degree or doctorate to support them while they study and help with living costs and tuition fees.
Like undergraduate loans and grants, they’re provided by the Student Loans Company, and you can apply via Gov.uk.
This is different from graduate loans, which are borrowed from other lenders such as banks.
Am I eligible for a postgraduate loan?
In England and Wales, you’re eligible for postgraduate student finance if:
You are a British citizen, or have lived in England or Wales for three years on the first day of your course
You are under 60 years old on the first day of your course
You’re studying a full master’s course – a level 7 qualification worth 180 credits
The course you're undertaking for your post-graduate study is no longer than four years
This is your first post-graduate master’s qualification (and you don’t have another higher qualification, such as a PhD)
You have no other funding for the course, such as a bursary
You aren’t behind in repayments for other Student Loans Company loans
You may also be eligible with a different residency status – such as if you’re an EU national or relative of one, a refugee, or have settled status. Check the full eligibility criteria on Gov.uk.
How much can I borrow as a postgraduate loan?
The amount you can borrow as a postgraduate loan depends on the year you started your course, and in Wales it also depends on your household income.
Along with the loan, you may also qualify for a grant or bursary.
Postgraduate Master’s Loans
You can borrow up to:
£12,471 if your master's course starts on or after 1 August 2024
£12,167 if your master's course started between 1 August 2023 and 31 July 2024
£11,836 if your master's course started between 1 August 2022 and 31 July 2023
Postgraduate Doctoral Loans
You can borrow up to:
£29,390 if your course starts on or after 1 August 2024
£28,673 if your course started between 1 August 2023 and 31 July 2024
£27,892 if your course started between 1 August 2022 and 31 July 2023
What is the interest rate on postgraduate loans?
The interest rate on postgraduate loans is usually 3% plus the RPI rate of inflation.
As of March 2024, inflation stood at 4.3%. Consequently, the rate of interest on a postgraduate loan will be 7.3% between 1 September 2024 and 31 August 2025.
How do I pay back a postgraduate loan?
Repayments on postgraduate loans kick in when you’re earning above £1,750 per month. That’s £403 per week, or £21,000 per year.
6% of all your earnings above that threshold are automatically taken out of your pay and go towards paying the loan off.
Because it comes directly out via payroll when you’re paid, you don’t need to do anything – it’s all taken care of for you.
Is a postgraduate loan ever written off?
Yes, it can be written off. If you never earn above the £21,000pa threshold, you’ll never need to pay anything back.
And even if you do start paying it, all remaining debt will be written off after 30 years.
How and when are postgraduate loans paid?
Postgraduate student loans are paid directly into the loanee's bank account after the course start date. The loan is paid in three instalments each academic year.
What are my other options?
Postgraduate loans from the government aren’t the only way to finance your studies. Other sources are available, including studentships, bursaries, grants, and in some cases funding from your employer. For instance, the NHS often funds healthcare-related masters and doctorate courses to help further your career.
You can find other types of funding via Scholarship Search or Prospects.
If you’re not eligible for anything, you also have the option of taking out a personal loan to support yourself. Just bear in mind that doing so comes with more risks than most student funding.
As a student, you’re also eligible for a number of other financial products – read about them here.
Comparing loans with MoneySuperMarket
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This allows you to explore your options without any negative consequences on your credit report.
MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.