Plan 3 repayment at 6% above £21,000 threshold — calculate monthly deductions and 30-year write-off projection
Calculate your monthly Plan 3 repayments and see how they stack alongside any undergraduate loan deductions.
Estimates based on current salary, no salary growth assumed. Actual repayments depend on income changes over 30 years.
| Feature | Detail |
|---|---|
| Maximum loan | £12,167 |
| Repayment plan | Plan 3 |
| Repayment rate | 6% of income above £21,000 |
| Repayment threshold | £21,000 (gross annual) |
| Write-off period | 30 years after entering repayment |
| Interest during study | RPI + 3% |
| Interest after study | RPI only |
Whether the Master’s Loan is worth taking depends on your career trajectory. For roles where a Master’s degree increases starting salary significantly — such as data science, engineering, certain NHS roles, and academic research — the investment typically pays off within a few years in additional earnings.
For roles where a Master’s gives marginal benefit, the £12,167 loan adds to existing undergraduate debt and may represent a poor financial return unless the degree opens doors that would otherwise be closed.
Because the loan writes off after 30 years and repayments are income-contingent, the risk of catastrophic debt is limited. However, unlike undergraduate Plan 5 loans, Plan 3 begins repayment at the lower £21,000 threshold, meaning repayments start sooner.
The maximum Postgraduate Master’s Loan for 2025/26 is £12,167 for English-domiciled students (or those studying in England from other parts of the UK). The loan is paid directly to the student in instalments across the academic year and can be used for tuition fees, living costs, or any other purpose.
Postgraduate Master’s Loan repayments are 6% of gross income above the £21,000 threshold (Plan 3). This is in addition to any undergraduate loan repayments. For example, if you earn £30,000, you repay 6% of £9,000 = £540/yr (£45/month) for the Masters loan, on top of any undergraduate Plan 2/5 repayments.
The Plan 3 repayment threshold is £21,000 gross annual income (2025/26). This threshold may change in future years. Unlike the undergraduate Plan 5 threshold of £25,000, the postgraduate threshold is lower, meaning repayments begin at a lower salary level.
The Postgraduate Master’s Loan (Plan 3) is written off 30 years after you first became liable to repay, which is typically the April after you finish or leave your course. This is shorter than the 40-year write-off for Plan 5 undergraduate loans.
Yes. Part-time Master’s students are eligible for the Postgraduate Master’s Loan as long as the course is at least 50% of full-time intensity. The loan amount is the same regardless of study intensity, but it may be spread over a longer period.
The monthly repayment amount may be taken into account by mortgage lenders when assessing affordability. While it does not appear directly on credit files, some lenders ask about student loan repayments and factor them into disposable income calculations. The impact depends on the lender’s policy.
Plan 2 is the undergraduate loan for most English students who started before August 2023 (9% above £27,295, write-off after 30 years). Plan 3 is the Postgraduate Master’s Loan (6% above £21,000, write-off after 30 years). Both can be repaid simultaneously — deductions are taken separately, meaning higher combined repayments for dual-loan holders.
Repayment only starts once your income exceeds £21,000. If your income remains below this, no repayments are taken automatically. There is no application needed to defer — it happens automatically through PAYE. If self-employed, you declare through Self Assessment.
The Plan 3 loan accrues interest at RPI (Retail Price Index) + 3% while studying and at RPI only after graduation. Interest rates change annually based on RPI. In 2025/26, rates are based on the March 2025 RPI figure. Check the Student Loans Company for the current rate.
Yes. If you have both an undergraduate loan (Plan 1, 2, or 5) and a Postgraduate Master’s Loan (Plan 3), both repayments are deducted simultaneously through PAYE. Each is calculated separately: the undergraduate loan at 9% above its threshold, and the Masters loan at 6% above £21,000. The combined deduction can be significant for those on middle incomes.
Apply through Student Finance England (or your nation’s equivalent) via gov.uk/masters-loan. You will need your course details and university information. Applications can be made before or after the start of your course, but earlier applications mean funds arrive sooner.
Most standalone taught Master’s degrees (MA, MSc, MBA, MRes, LLM) and some integrated master’s qualifications qualify. The course must be at least 1 year full-time (or 2 years part-time) at a recognised UK institution. PGCE, PhDs, and courses in certain professional areas may have different funding routes.