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 £28,470
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 | £28,470 | £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: 86 /month
PG repayment: 95 /month
Total: £181 /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)