If you take out a Master's or Doctoral Loan after an undergraduate degree funded by Student Finance England, you will usually have two plans: Plan 5 (or Plan 2, if your degree started before August 2023) and the Postgraduate Loan plan. Both are repaid at the same time, through the same payslip, and the two deductions are added together.
GOV.UK says that if you have a Postgraduate Loan and another plan, you repay 6% of your income over the Postgraduate Loan threshold and 9% of your income over the lowest threshold of your other plans. So with Plan 5 and a Postgraduate Loan you pay 6% on income between £21,000 and £25,000, and 15% in total on income above £25,000.
| Salary | Postgraduate Loan (6%) | Plan 5 (9%) | Total a year | Total a month |
|---|---|---|---|---|
| £24,000 | £180.00 | £0.00 | £180.00 | £15.00 |
| £30,000 | £540.00 | £450.00 | £990.00 | £82.50 |
| £35,000 | £840.00 | £900.00 | £1,740.00 | £145.00 |
| £45,000 | £1,440.00 | £1,800.00 | £3,240.00 | £270.00 |
| £60,000 | £2,340.00 | £3,150.00 | £5,490.00 | £457.50 |
Worked example: on a £35,000 salary the Postgraduate Loan takes 6% of £14,000 = £840.00, and Plan 5 takes 9% of £10,000 = £900.00. Together that is £1,740.00 a year, about £145.00 a month.
GOV.UK's own example uses Plan 2: on £2,500 a month, 6% of £750 (over £1,750) is £45 and 9% of £52 (over £2,448) is £4.68, giving £49 a month.
Each loan has its own repayment start date, based on when you leave the course it paid for: the earliest is the April after you leave. GOV.UK notes that loans for different courses can have separate start dates. So if you finish a degree in summer 2026 and go straight on to a one-year master's, the degree loan and the master's loan are not necessarily due from the same April. In practice, if you are a full-time student earning under the thresholds, nothing is taken anyway.
| Plan 5 | Postgraduate Loan | |
|---|---|---|
| Interest (as shown on GOV.UK) | 4.1% | 6% |
| Normal basis | RPI | RPI plus 3%, currently capped at 6% |
| Written off | 40 years after first due to repay | 30 years after first due to repay |
The Postgraduate Loan usually carries a higher rate and a shorter term. The SLC's Postgraduate Loan page says the market-rate cap is currently being applied at 6%.
Your employer records both: a plan type for the undergraduate loan and a separate Postgraduate Loan indicator. HMRC can send a separate start notice for each (SL1 for the student loan, PGL1 for the Postgraduate Loan). Your payslip should show two lines. If only one appears and you are past both start dates, check your starter checklist answers, tell your employer, or ask the SLC to confirm both loans are in repayment.
If you make voluntary extra repayments, GOV.UK says you can choose how they are applied, for example to a specific plan. If you do not choose, the SLC decides. Extra repayments cannot be refunded, and because both loans can be written off, it is worth checking whether paying early helps before you do it. See should you overpay a Plan 5 loan?
If your degree started before August 2023, your undergraduate loan is on Plan 2 instead, with its higher £29,385 threshold. The Postgraduate Loan sum is unchanged.
| Salary | Postgraduate Loan (6%) | Plan 2 (9%) | Total a year |
|---|---|---|---|
| £30,000 | £540.00 | £55.35 | £595.35 |
| £35,000 | £840.00 | £505.35 | £1,345.35 |
| £45,000 | £1,440.00 | £1,405.35 | £2,845.35 |
In this band only the Postgraduate Loan is repaid. On £24,000, for example, you repay 6% of £3,000, which is £180.00 a year, and nothing towards Plan 5. Interest is still added to both loans. If your pay rises above £25,000, the Plan 5 deduction starts on top from that pay period.
Because the Postgraduate Loan threshold is lower and the rate is 6%, it is common for this loan to be in repayment for several years before Plan 5 deductions begin, for example during a first job on a modest salary.
The calculator covers the Plan 5 part. Add the Postgraduate Loan figure (6% of income over £21,000) to see your total deduction.
Sources: GOV.UK: how much you repay · GOV.UK: when you start repaying · SLC: how Postgraduate Loan interest is calculated · GOV.UK: written off or cancelled · HMRC: student loan guidance for employers. Checked 29 October 2026.
Last checked: 29 October 2026. Estimates only, not financial advice.
Yes, once both are due. You repay 6% over £21,000 for the Postgraduate Loan and 9% over £25,000 for Plan 5, added together.
£1,740.00 a year: £840.00 for the Postgraduate Loan and £900.00 for Plan 5.