Postgraduate Loan repayments explained
Postgraduate Loans use a different threshold and rate from undergraduate student loans. In 2026/27 the threshold is £21,000 and the repayment rate is 6% above it.
How the deduction works
If your pay is above the Postgraduate Loan threshold for the pay period, payroll deducts 6% of the excess. For a monthly-paid employee the 2026/27 threshold is £1,750.
Can you repay an undergraduate and postgraduate loan together?
Yes. If your income is high enough, a Postgraduate Loan deduction can be taken alongside a Plan 1, 2, 4 or 5 deduction. The undergraduate plan uses 9% above its own threshold while the Postgraduate Loan uses 6% above £21,000.
Example
At £3,000 gross pay in a month, the Postgraduate Loan excess is £1,250. Six per cent is £75, so the payroll deduction is approximately £75 before considering any undergraduate-plan deduction that may also apply.
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FAQs
What is the Postgraduate Loan threshold for 2026/27?
£21,000 a year, equivalent to £1,750 a month for monthly payroll.
What percentage is a Postgraduate Loan repayment?
6% of earnings above the relevant threshold.
Can I pay a Postgraduate Loan and Plan 2 at the same time?
Yes. If your income is above both thresholds, deductions can be made for both in the same pay period.