Direct answer
The UK Postgraduate Loan provides up to £17,750/year (2026–27), covering roughly 70–75% of Russell Group tuition but leaving shortfalls for top-tier universities charging £20,000–25,000/year. Repayment begins at £27,750+ salary (Plan 2) or £19,715+ (Plan 5, new as of April 2024 for loans issued after that date). Only domestic students qualify. The loan is non-means-tested, meaning you can borrow regardless of household income, but postgraduate study remains increasingly unaffordable without savings or part-time work.
The Postgraduate Loan landscape (2026–27)
Loan size and duration
| Parameter | 2026–27 amount |
|---|---|
| Maximum loan per year | £17,750 |
| Typical course length | 1 year (Master’s) |
| Max total borrowing | £17,750 (one-year) / £35,500 (two-year course) |
| Interest rate | RPI + 3% (currently ~8–9%, varies quarterly) |
| Repayment length (before write-off) | Plan 2: 30 years; Plan 5: 40 years |
Indexation note: The loan cap increases annually in line with inflation. The £17,750 figure applies to academic year 2026–27; the 2027–28 amount will be indexed upward in spring 2027.
Who qualifies?
- Yes: UK citizens, Irish citizens, settled status (from post-Brexit transition), and some visa holders living in the UK for 3+ years with continuous residency.
- No: International students (non-EU/non-settled visa), even if studying at UK universities.
Tuition reality: where the gap opens
Russell Group and Russell Group equivalents (2026 fees)
According to UCAS data and university websites:
| University | Typical postgraduate fee (£/year) | Loan covers | Gap |
|---|---|---|---|
| University of Oxford | 22,500 – 25,000 | 17,750 | 4,750 – 7,250 |
| University of Cambridge | 21,500 – 24,000 | 17,750 | 3,750 – 6,250 |
| Imperial College London | 23,000 – 26,000 | 17,750 | 5,250 – 8,250 |
| UCL | 20,500 – 24,000 | 17,750 | 2,750 – 6,250 |
| King’s College London | 19,000 – 23,000 | 17,750 | 1,250 – 5,250 |
| LSE | 20,000 – 27,000 | 17,750 | 2,250 – 9,250 ★ |
| University of Manchester | 17,500 – 20,500 | 17,750 | –250 to 2,750 |
| University of Edinburgh | 18,000 – 21,500 | 17,750 | 250 – 3,750 |
★ LSE’s most expensive postgraduate degrees (LLM, MSc Finance, MSc Political Economy) breach £25,000–27,000/year.
Mid-tier and post-1992 universities
Universities like Nottingham Trent, Manchester Metropolitan, and Kingston typically charge £11,000–15,000/year for postgraduate programs, meaning the loan fully covers or over-covers tuition. For these institutions, Postgraduate Loans are genuinely sufficient, with surplus for living costs.
Repayment: Plan 2 vs. Plan 5
Postgraduate loans operate on two separate repayment systems depending on when the loan was issued:
Plan 2 (loans issued before April 6, 2024)
- Repayment threshold: £27,750 gross annual salary.
- Repayment rate: 6% of earnings above the threshold.
- Example: Salary £35,000 → (£35,000 − £27,750) × 6% = £435/year (~£36/month).
- Write-off period: 30 years. Loan is cancelled if not repaid within 30 years of becoming eligible to repay (age ~50–55 for most graduates).
Plan 5 (loans issued on or after April 6, 2024)
- Repayment threshold: £19,715 gross annual salary (aligned with undergraduate Plan 5).
- Repayment rate: Same 6% of earnings above the threshold.
- Example: Salary £35,000 → (£35,000 − £19,715) × 6% = £918/year (~£77/month).
- Write-off period: 40 years, or age 60 (whichever comes first).
Impact: Plan 5 graduates repay roughly twice as much per year as Plan 2 graduates on the same salary, despite borrowing the same amount.
Living costs: the loan’s second gap
A one-year Master’s programme costs:
| Item | Monthly cost (£) | Annual cost (£) |
|---|---|---|
| Rent | 600 – 1,000 | 7,200 – 12,000 |
| Food | 250 – 400 | 3,000 – 4,800 |
| Transport (buses/Oyster card London) | 100 – 150 | 1,200 – 1,800 |
| Utilities (gas, water, internet) | 120 – 200 | 1,440 – 2,400 |
| Books, stationary, software | 50 – 150 | 600 – 1,800 |
| Social, entertainment, misc. | 200 – 400 | 2,400 – 4,800 |
| Total monthly | 1,320 – 2,300 | 15,840 – 27,600 |
Reality check: In London, a single postgraduate living frugally spends £18,000–22,000/year. Outside London (Manchester, Edinburgh, Leeds), it’s £13,000–16,000/year.
The loan only covers tuition, not living costs. If you borrow £17,750 for a £17,500 tuition fee (break-even), you have £0 for rent, food, or transport. Most postgraduate students rely on:
- Savings from undergrad work or family.
- Part-time work during the course (max. 20 hours/week during term).
- Partner’s income or spouse support.
- Maintenance loans (rarely available at postgrad level).
International students: no postgraduate loan access
Non-UK residents cannot access the Postgraduate Loan. Your funding options:
- University scholarships: Highly competitive; typically 10–20% of international intake at Russell Group universities.
- Government sponsorships: Chevening (UK government), DAAD (Germany), AusAID (Australia), etc.
- Employer sponsorship: Some companies offer to cover postgraduate tuition for talented employees.
- Private loans: Specialist lenders (Prodigy Finance, Sallie Mae International) offer loans at 7–12% interest for international postgrads.
- Self-funding: Full tuition + living costs out-of-pocket (estimated £30,000–45,000 total for one year at Russell Group).
Where the shortfall bites hardest
1. Russell Group students from non-wealthy families
If your tuition is £23,000 and your loan covers £17,750, you have a £5,250 shortfall. Most manage by:
- Taking part-time work (bar, retail, online tutoring) at £15–25/hour.
- Delaying living cost increases (house-sharing, living farther from campus).
- Accumulating additional debt (credit cards, overdrafts).
2. STEM postgrads in expensive cities
Physics and engineering Master’s students at Imperial or Cambridge, living in London or Cambridge:
- Tuition: £24,000–26,000.
- Living costs: £22,000–24,000.
- Total cost: £46,000–50,000.
- Loan covers: £17,750 (tuition only).
- Student must find: £28,250–32,250.
3. Extended or two-year Master’s programmes
Some universities (especially Edinburgh, Durham, Warwick) offer integrated two-year Master’s degrees. Postgraduate Loan scales to £35,500 (two years × £17,750), but tuition scales too: £35,000–48,000 total for two-year programs. Gap widens again.
FAQ
Q: Can I use the Postgraduate Loan for living costs, not tuition?
A: Yes. The loan is paid to your student account; you decide how to allocate it. Many students allocate £7,000–8,000 to tuition and draw the remaining £9,750–10,750 as living cost credit. However, if your tuition exceeds the loan, the gap is shortfall—you must cover it separately.
Q: Does the Postgraduate Loan count as income for tax purposes?
A: No. The loan is not taxable income. Repayment (once employed) is deducted from salary automatically via PAYE and does not affect your tax band.
Q: What if I earn below the repayment threshold after graduation?
A: You pay nothing. Payments are only triggered when you earn above threshold. If you later return to study, take a career break, or earn below threshold indefinitely, the loan simply sits there, accruing interest, until write-off (30 or 40 years depending on Plan).
Q: Can I repay the loan early?
A: Yes, without penalty. You can repay in full or make additional payments to reduce the balance. Early repayment is typically only worthwhile if you expect to earn significantly above threshold quickly (e.g., investment banking, law).
Q: What happens if I move abroad after graduation?
A: Repayment obligation continues. You are required to repay from anywhere in the world, though enforcement is practical and geographically complex. Most graduates abroad continue repayments via UK bank account.
Q: How does a second Master’s degree affect my loan eligibility?
A: A second Postgraduate Loan is available only if your first loan was for a different level (e.g., first was undergraduate, second is postgraduate). You cannot take two postgraduate loans for two separate Master’s degrees.
Last updated: April 2026
Loan amounts and repayment thresholds are current for academic year 2026–27. Check Student Finance England (www.gov.uk/student-finance) for the most current rates. Tuition fees vary by university and program; figures are approximate as of March 2026.