Postgraduate Loans Explained: Funding Your Master's or PhD in the UK

Funding Your Postgraduate Dream: An Introduction

Considering a Master's or Doctoral degree in the UK? Postgraduate study can significantly boost your career prospects, but funding it is a key consideration. Government-backed Postgraduate Loans are a primary source of finance for many. This guide explains how these loans work for students in England, Wales, and Northern Ireland, covering eligibility, loan amounts, interest, and the crucial repayment details – especially how they differ from undergraduate loans.

Types of UK Postgraduate Loans

There are two main types of government postgraduate loans available to eligible students from England, Wales, and Northern Ireland (Scotland has a separate system via SAAS):

1. Postgraduate Master's Loan

This loan is to help with course fees and living costs while you study a taught or research Master's course. The maximum amount you can borrow varies slightly depending on whether you're applying through Student Finance England, Wales, or Northern Ireland, and for which academic year.

2. Postgraduate Doctoral Loan

This loan is for those undertaking a full doctoral qualification, such as a PhD. Similar to the Master's loan, it's a single loan amount paid over the duration of your course (up to a maximum number of years) to be used for fees and living costs.

Are You Eligible for a Postgraduate Loan?

Eligibility for a Postgraduate Master's or Doctoral Loan depends on several factors. While specific criteria can vary slightly between Student Finance England, Wales, and Northern Ireland, common considerations include:

1. Nationality and Residency

• UK Nationals: Generally, you must be a UK national or have 'settled status' and normally live in England, Wales, or Northern Ireland.
• EU/EEA/Swiss Nationals: Rules have changed post-Brexit. Those with settled or pre-settled status under the EU Settlement Scheme may be eligible. Others might need to meet longer residency requirements. Always check the latest government guidance.
• Other Nationalities: Eligibility is more restricted, often requiring specific residency statuses (e.g., refugee status, long residence).
• Residency: Typically, you must have been living in the UK, Channel Islands, or Isle of Man for at least three years before the start of your course.

2. Age

• For Master's Loans, you usually need to be under 60 years old on the first day of the first academic year of your course.
• Doctoral Loans have similar age considerations.

3. Previous Qualifications

• Generally, you can't get a Postgraduate Loan if you already hold a qualification at the same level or higher (e.g., you can't get a Master's Loan if you already have a Master's or PhD).
• There are some exceptions, so check the specific rules.

4. Course Eligibility

• The course must be a full standalone Master's or Doctoral program (not a top-up from a lower qualification).
• It must be at an eligible UK university or higher education provider.
• Courses can usually be full-time (typically 1 or 2 years for Master's, 3 to 8 years for Doctoral) or part-time (typically 2 to 4 years for Master's, longer for Doctoral, but must not take more than twice the equivalent full-time course).
• Distance learning courses may also be eligible.
• be worth at least 180 credits - check the course provider’s website if you’re not sure.
• have started on or after 1 August 2016

Important: Always check the detailed eligibility criteria on the official student finance website for the country you're applying from (England, Wales, or NI) for the most accurate and up-to-date information.

Postgraduate Loan Amounts & What They Cover

The amount you can borrow for a postgraduate loan is a fixed maximum for the entire course, regardless of your household income. This differs from undergraduate maintenance loans.

Master's Loan Amount

For students from England starting a course in 2025, the maximum Master's Loan is £12,858. This amount is for the whole course, not per year.

For students from Wales and Northern Ireland, the maximum amounts may differ slightly. It's crucial to check the relevant student finance body:

• Student Finance Wales (SFW)
• Student Finance Northern Ireland (SFNI)

If your course lasts for more than a year, the loan will be divided equally across each year of your course.

The loan is paid directly to you. You can use it for your course fees and living costs.

Doctoral Loan Amount

For students from England starting a course in 2025, the maximum Doctoral Loan is £30,301 . This is for the entire duration of your course (up to the maximum course length eligible for funding).

Again, check SFW and SFNI for amounts if you're from Wales or Northern Ireland.

What the Loan Can Be Used For

Postgraduate loans are intended to contribute towards both your tuition fees and your living costs. You decide how to allocate the funds. The loan is paid directly to you in instalments (usually three per academic year).

Unlike undergraduate tuition fee loans (which are paid directly to the university), you are responsible for paying your tuition fees to the university from the postgraduate loan funds you receive (or other sources).

When you're paid (Masters and Doctoral)

You get the first payment after your course start date, once your university or college confirms that you’ve registered.

The loan will be paid in 3 instalments of 33%, 33% and 34% each year. After your application has been approved, you’ll be sent a letter with your payment dates. You can also check them in your online account.

Interest Rates on Postgraduate Loans

Interest is charged on your postgraduate loan from the day the first payment is made to you.

For Postgraduate Master's and Doctoral loans in England and Wales, the interest rate is typically set at RPI + 3% and is set on the 1st September each year.

However, there's often an overriding maximum interest rate cap that can be applied if RPI + 3% becomes excessively high. For example, in recent periods, this cap has been around [e.g., 7.5% to 7.8%].

It's important to check the current interest rate applicable when you take out the loan and be aware that it can change over the lifetime of your loan, usually updated once a year based on RPI.

Northern Ireland's postgraduate loan interest rates might have slightly different terms, so check with SFNI.

Repaying Your Postgraduate Loan

Repaying your Postgraduate Loan has some key differences compared to undergraduate loans:

• Repayment Threshold: You typically start repaying once your annual income is over £21,000 (or the monthly/weekly equivalent). Always verify the current threshold.
• Repayment Percentage: You repay **6%** of your income above this threshold for your Postgraduate Loan.
• Concurrent Repayments: This is crucial. If you also have an undergraduate student loan (e.g., Plan 2 or Plan 5), and your income is above the thresholds for BOTH types of loans, you will make repayments on BOTH simultaneously. For example, you might pay 6% towards your PG loan AND 9% towards your undergraduate loan from the same payslip if you earn enough. More on this in our Student Fiannce Guide 2025
• Interest Rate: Often set at RPI + 3%, but there can be an overall cap.
• Write-Off Period: Usually 30 years from the April after your course is due to finish (or you leave it).

How to Apply for a Postgraduate Loan

The application process is generally done online through the relevant student finance body:

• England: Apply online via Student Finance England on GOV.UK.
• Wales: Apply through Student Finance Wales.
• Northern Ireland: Apply through Student Finance NI.

Key things to note for your application:

• Timing: You can usually apply from around June or July for courses starting in the autumn. Deadlines exist, so apply as early as possible. You don't need a confirmed place on a course to apply, you can use your preferred choice and update it later.
• Information Needed: You'll typically need your National Insurance number, passport details (or birth certificate), bank account details, and course/university details.
• No Household Income Assessment: Unlike undergraduate maintenance loans, postgraduate loans are generally not assessed based on your household income (the maximum loan amount is not means-tested).

Always refer to the official websites for the most detailed application guides and deadlines.

Pros and Cons of Postgraduate Loans

Potential Pros:

• Enables access to further education that might otherwise be unaffordable.
• Can lead to enhanced career prospects and earning potential.
• Loan amounts are often substantial enough to cover a good portion of fees and living costs.
• Repayments are income-contingent, offering a safety net if your income is low post-study.
• Interest rates, while higher than some older undergraduate plans, are often capped.

Potential Cons:

• Adds to your overall student debt burden.
• Interest accrues from day one and can be significant.
• The 6% repayment rate is *in addition* to any undergraduate loan repayments (e.g., 9%), leading to a higher total deduction from your salary if you have both.
• The repayment threshold for PG loans is lower than for most current undergraduate plans, meaning you start repaying sooner on a lower income.
• The loan may not cover the full cost of very expensive courses or living in high-cost areas, requiring additional funding.

Alternative & Supplementary Funding for Postgraduate Study

While government postgraduate loans are a key resource, it's worth exploring other funding avenues:

• University Scholarships and Bursaries: Many universities offer their own financial support for postgraduate students based on merit or need. Check directly with the universities you're interested in.
• Research Council Funding (for PhDs): UK Research and Innovation (UKRI) provides stipends and fee coverage for doctoral candidates in specific research areas. Competition is high.
• Employer Sponsorship: If your postgraduate study is relevant to your career, your employer might offer full or partial funding.
• Charitable Trusts and Foundations: Some charities offer grants or scholarships for specific fields of study or for students from particular backgrounds.
• Professional and Career Development Loans (Private): These are bank loans and should be approached with caution due to commercial interest rates and less flexible repayment terms compared to government loans.
• Personal Savings & Part-Time Work: Many students supplement their loans with savings or income from part-time jobs.

Is a Postgraduate Loan Right for You?

Postgraduate loans can be an invaluable way to fund further study. However, it's vital to understand the terms, especially the repayment conditions and how they interact with any existing undergraduate loans. Use this guide as a starting point for your research and consider your long-term financial picture. Our calculator can help you model undergraduate loan repayments; be sure to factor in separate postgraduate loan repayments when planning your overall budget.