Postgraduate Loan (PGL): 2025-26 & 2026-27
HMRC income-contingent repayments · 6% above £21,000 (2026-27)
Quick answer
£1,140/year on £40,000 (2026-27)
Threshold: £21,000 (2025-26) → £21,000 (2026-27) · Rate: 6%
Who this plan is for
Anyone who has taken a Master's or Doctoral loan from Student Finance England/Wales, funded from 1 August 2016 onward.
- English students — Master's loans from August 2016, Doctoral loans from August 2018
- Welsh students — equivalent PGL since August 2017
- Note: Scottish postgraduate loans from SAAS are handled separately (not HMRC-collected)
Postgraduate Loan repayments by salary
All figures computed live from HMRC-published thresholds. 6% of income above £21,000 (2026-27).
| Gross salary | 2025-26 annual | 2026-27 annual | 2026-27 monthly |
|---|---|---|---|
| £21,000 | £0 | £0 | £0 |
| £30,000 | £540 | £540 | £45 |
| £40,000 | £1,140 | £1,140 | £95 |
| £50,000 | £1,740 | £1,740 | £145 |
| £75,000 | £3,240 | £3,240 | £270 |
| £100,000 | £4,740 | £4,740 | £395 |
Interest rate
Postgraduate loan interest is RPI + 3% at all times — it is not variable like Plan 2, so the rate is the same whether you are earning £5,000 or £500,000.
Current rates change each September (RPI reset). See the GOV.UK student loan repayment thresholds and interest rates page for the latest.
Writeoff
Postgraduate loans are written off 30 years after the April you were first due to repay.
Use the full calculator
Want to combine Postgraduate Loan with another plan, test different salaries, or model a pay rise? Open the full UK Student Loan Repayment Calculator — supports all plans simultaneously and toggles between tax years.
Other student loan plans
Frequently asked questions
What is the Postgraduate Loan threshold for 2026-27?
£21,000 per year (£1,750/month, £404/week). You only repay 6% on the portion of your gross income that exceeds this figure. The 2025-26 threshold was £21,000, and HMRC applies the new threshold from 6 April 2026.
How much do I pay on a £40,000 salary under Postgraduate Loan?
At £40,000 for 2026-27, you repay £1,140 per year (£95 per month). The calculation is 6% × (£40,000 − £21,000 threshold) = £1,140. Repayments stop automatically if your income drops below the threshold.
Who qualifies for the Postgraduate Loan?
Anyone who has taken a Master's or Doctoral loan from Student Finance England/Wales, funded from 1 August 2016 onward.
I have an English Master's Loan. Do I repay on top of my undergraduate loan?
Yes. The Postgraduate Loan repayment (6% above £21,000) is collected separately and in addition to any undergraduate plan (Plan 1/2/4/5 at 9% above its threshold). On a £40,000 salary with both a Plan 2 and a PGL, you'd pay around 9% × £10,545 + 6% × £19,000 combined.
Does the Postgraduate Loan threshold change each year?
The £21,000 threshold has been frozen since it launched in 2016 and there is no announced uprating date. Unlike Plan 1/2/4, the PGL threshold has never been indexed to inflation — it is a policy decision, not automatic.
My employer isn't deducting my PGL. What do I do?
Tell HMRC and your employer — PGL has a separate tick box on the P45/starter checklist. If deductions haven't started, HMRC will catch up through a Self Assessment or an updated tax code, usually with a lump-sum demand rather than spread over the year.
Doctoral loans — same rules?
Yes. English Doctoral Loans from August 2018 use the same 6% rate, £21,000 threshold, and RPI + 3% interest as the Master's Loan. HMRC treats both as a single "Postgraduate Loan" deduction — you don't pay 12% because you have both.
When is my Postgraduate Loan written off?
Postgraduate loans are written off 30 years after the April you were first due to repay.