GuideUpdated 2025
Undergraduate vs Postgraduate
How undergraduate (UG) and postgraduate (PG) loans differ and how they combine in monthly repayments if you have both.
UG rate
9%
Threshold £29,385
PG rate
6%
Threshold £21,000
PG interest
Generally higher
Often RPI + 3%
How UG and PG loans differ
| Feature | Undergraduate (Plan 2) | Postgraduate |
|---|---|---|
| Repayment rate | 9% | 6% |
| Threshold | £29,385 | £21,000 |
| Interest | RPI (sliding) | Often RPI + 3% |
| Write-off period | 30 years | 30 years |
Try it yourself. Compare undergraduate and postgraduate repayments side by side.
Open Calculator →What happens if you have both UG and PG loans?
If you have both types of loans, repayments are calculated separately and stack. You may see two small deductions each month which together reduce your take-home pay.
📝 Stacked repayments example (UG + PG)
Assumptions:
Salary: £40,000 | UG (Plan 2) threshold: £28,470 | PG threshold: £21,000
UG repayment: £80 a month
PG repayment: £95 a month
Total: £175 a month
Model your combined loans
Use the combined calculator to see precise monthly deductions for both UG & PG loans.
Should you take a postgraduate loan?
Why PG loans may be worth it:
- You expect the higher qualification will increase your lifetime earnings
- Pursuing a career where a PG is required (medicine, research, law) can pay off
- PG loans often have lower monthly repayment rates (6%)
Consider alternatives if:
- You already have high undergraduate debt
- You could fund the course with a salary/ employer support
- You want to avoid extra repayment deductions (albeit small)