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Postgraduate Master's Loan UK 2026/27: Amount, Repayment, and What It Actually Misses

28 May 2026 11 min read Radu Danila

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# Postgraduate Master's Loan UK 2026/27: Amount, Repayment, and What It Actually Misses

Radu Danila • 28 May 2026

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If you are looking at a Master's in 2026, you have probably already done the basic maths and noticed the loan does not really stretch. £13,206 across one year of taught Master's is closer to a tuition contribution than a living budget. Most undergraduate maintenance loans are larger than the entire Postgraduate Master's Loan. And yet for most people who take it, the loan is the only thing that makes the year possible.

This guide walks through exactly what the Postgraduate Master's Loan covers in 2026/27, what it does not cover, the repayment terms, and the funding gaps you need to fill from somewhere else before you commit to the course. The headline number is clear. The honest picture around it is the part most prospectuses leave out.

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## Quick answer: how much is the Postgraduate Master's Loan in 2026/27?

For the 2026/27 academic year, the maximum Postgraduate Master's Loan in England is **£13,206**. The loan is non-means-tested, so household income does not affect the amount. It is paid directly to you in three roughly equal instalments across the academic year. Repayments start in the April after you finish or leave your course, at 6% of any income above £21,000 a year. Interest is RPI plus 3% throughout, both while you study and after. The loan is written off 30 years after the April you first became liable to repay.

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## Who can apply

You can apply for a Postgraduate Master's Loan if all the following are true:

- You are studying a full or stand-alone Master's course at a UK higher education provider
- The course is at Level 7 (or Level 11 in Scotland)
- You are under 60 on the first day of your course
- You meet the residency requirements (UK national, settled status, or one of the named EU eligibility groups)
- You do not already hold a Master's or higher qualification, except in limited cases (research Master's, conversion courses, exceptions for those who repaid their previous loan in full)

The "you already have a Master's" rule has a few exceptions worth knowing. If your previous Master's was self-funded and you never took a Postgraduate Loan, you can apply for the new one. If your previous Master's was at a lower level than the new one (rare, but possible), the new course can qualify. If you are doing a Master's that is part of a regulated professional pathway (Initial Teacher Training, certain healthcare conversions), separate funding routes may apply.

PGCE students do not use the Postgraduate Master's Loan. PGCE is funded as a UG-equivalent year through the standard maintenance loan on Plan 5, plus a Teaching Bursary in eligible subjects. The distinction catches a lot of teaching applicants by surprise.

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## What the £13,206 covers in practice

The loan is paid to you, not to your university. You decide what to spend it on. In a typical year, students use it for some combination of:

- Tuition fees (Master's courses often cost between £10,000 and £25,000)
- Books, journal subscriptions, software licences
- Living costs during a part-time year alongside work
- Travel to and from campus for hybrid or weekend courses

Some Master's programmes cost more than the £13,206 loan. In those cases, the loan acts as a contribution rather than full coverage. The remainder comes from savings, a personal loan, employer sponsorship, scholarships, or a household budget.

The non-means-tested nature is genuinely useful for adult students. Whether your household income is £18,000 or £180,000, the loan amount is the same. There is no taper, no household assessment, and no claim form for dependants.

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## How the repayment works

Repayments begin in the April after you leave or finish your course. The system runs in parallel with any undergraduate plan you may have, with deductions taken from your salary at the same time.

| Annual salary | Income above £21,000 | Monthly PG loan repayment (6%) |
|---|---|---|
| £20,000 | £0 | £0 |
| £25,000 | £4,000 | £20 |
| £30,000 | £9,000 | £45 |
| £40,000 | £19,000 | £95 |
| £50,000 | £29,000 | £145 |
| £65,000 | £44,000 | £220 |

If you also have an undergraduate loan running, the two repayments stack. A graduate on £40,000 with both an undergraduate Plan 2 loan and a Postgraduate Loan would pay roughly 9% on income above £28,470 plus 6% on income above £21,000, in parallel. The two deductions appear on your payslip as separate lines.

Interest accrues at RPI plus 3% throughout the life of the loan, both during study and after. Unlike Plan 2 undergraduate interest, there is no income taper on the rate. It is a flat RPI plus 3% regardless of your salary.

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## What the loan does not cover

This is the part the official guidance is honest about but easy to miss. The Postgraduate Master's Loan is a single pot of money that combines what would be the tuition fee loan and the maintenance loan at undergraduate level. The combined £13,206 has to do both jobs.

For comparison, an undergraduate in 2026/27 typically receives a £9,535 Tuition Fee Loan paid directly to the university, plus a Maintenance Loan of £7,110 to £13,762 depending on band. The undergraduate package is larger because the loans are separate. The Master's loan does not replicate that structure.

Practical implications:

- If your Master's tuition is £15,000, the loan does not cover even the fee alone
- If your Master's tuition is £8,000 and you have £5,200 left for living costs, you are funding a year of life on the equivalent of £100 a week
- Part-time Master's courses spread over two years receive the same total loan, not double, paid across the longer period

The funding gap is the single biggest reason adult students delay or reconsider a Master's. The number is not hidden, but the comparison with undergraduate funding is rarely drawn explicitly.

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## Where the rest of the money usually comes from

Most Master's students use a combination of routes to fund the year. The most common are:

| Source | Typical contribution | What to watch for |
|---|---|---|
| Personal savings | £2,000 to £10,000 | Be honest about emergency fund impact |
| Employer sponsorship | Full or partial tuition | Often comes with a service commitment |
| Course-specific scholarship | £1,000 to £10,000 | Apply early; deadlines often before course start |
| Working part-time alongside study | £8,000 to £15,000 in a year | Watch the impact on study hours |
| Universal Credit (limited) | Variable | Eligibility is restricted for full-time students |
| Career Development Loan (limited) | Up to £10,000 | Commercial debt, repayment from year one |
| University postgraduate hardship fund | £500 to £3,000 | Discretionary, apply mid-year |

Employer sponsorship is the most reliable supplement when it is available. If your current employer benefits from the qualification (data, finance, healthcare, engineering, education, public sector), they may sponsor part of the cost. Many sponsorships come with a clause requiring you to stay with the employer for two to three years after qualifying.

Course-specific scholarships are the second most common route. Most UK Master's programmes offer at least one merit-based or needs-based scholarship. Deadlines often sit three to six months before the course starts, well before most students think to apply.

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## What changes if you study part-time

The Postgraduate Master's Loan is available for part-time study, with three caveats:

1. The course must be completed within four years
2. The maximum loan is still £13,206 total, split across the years of study
3. You must study at an intensity of at least 25% of the full-time course in any year you receive the loan

Part-time study can work well for adult students who keep their income from full-time or substantial part-time work. The £13,206 contribution paid across two or three years can cover most of the tuition while the salary covers living costs.

For broader context on returning to study while working, the [Working While Studying University UK 2026 Reality Check](https://unistart.app/blog/work-while-studying-university-uk-2026) covers the time and income trade-offs honestly.

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## The biggest mistake Master's applicants make

The biggest mistake is treating the Postgraduate Master's Loan as a complete funding solution and applying for the course before checking the gap.

Most Master's tuition fees for 2026 sit between £10,000 and £18,000 for UK home students. Specialist programmes (MBA, healthcare, design, top-ranked law) can exceed £25,000. The loan was set at £13,206 with the deliberate understanding that students would supplement it. If your funding plan is "the loan plus some savings", and your tuition exceeds £10,000, the maths usually shows a serious gap by month four.

The second mistake is assuming you can work full-time alongside a full-time Master's. Most one-year UK Master's courses are genuinely intensive, with formal contact hours plus heavy reading, dissertation, and assessment loads. Carrying 20 to 25 hours of work a week is realistic for many students. Full-time work alongside full-time study almost never is.

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## Interaction with Universal Credit and other benefits

Postgraduate loan income is treated differently from undergraduate maintenance loan for UC purposes. The loan is generally not counted as income for Universal Credit in most months because it is paid for tuition rather than living costs.

The full UC rules are complex. If you have dependent children, a disability, or a partner who works, your eligibility may continue during study. The work coach at your local Job Centre is the right point of contact. Take your Master's funding letter to the appointment.

You cannot generally claim both the Postgraduate Master's Loan and the undergraduate maintenance loan at the same time. The two are separate plans for separate qualification levels.

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## Instead of asking "Is the loan enough?", ask this

| Instead of | Better question |
|---|---|
| Is the loan enough? | What is the gap between the loan, my tuition, and a realistic year of living costs? |
| Should I do a Master's now? | Do I have a funded plan that does not put my emergency fund at risk? |
| Will an employer sponsor me? | Have I started that conversation in writing six months before the course? |
| Should I work alongside the course? | What is the realistic weekly hour cap given my course intensity? |
| Should I take a Career Development Loan to top up? | What is the total cost of commercial debt added on top of the Master's loan? |

The Master's loan is a useful contribution, not a complete package. Students who treat it that way reach the funding plan they actually need.

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## Before you apply, build the funding picture

A funded Master's plan is the loan, plus the gap closed by other sources, plus a realistic monthly budget that the gap-funding actually delivers. Applying for the course without that picture is the most common reason adult students drop a Master's in the first term.

With UniStart, you can:

- Confirm your Postgraduate Master's Loan eligibility for 2026/27
- Estimate the gap between the loan, your tuition, and living costs
- Identify scholarships, sponsorships, and employer routes for your subject
- Get free one-to-one support before applying

**[Explore Master's funding routes at unistart.app/funding](https://unistart.app/funding)**

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## Important

Postgraduate Master's Loan amounts, eligibility, and repayment rules depend on your residency, your course, your start date, and prior qualifications. The figures here are the published Student Finance England rules for the 2026/27 academic year. This guide is general information only and is not financial advice. Always check your specific position on gov.uk and inside your Student Loans Company account before committing to a Master's course.

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## Sources

- [GOV.UK Master's Loan overview](https://www.gov.uk/masters-loan)
- [GOV.UK Master's Loan: eligibility](https://www.gov.uk/masters-loan/eligibility)
- [GOV.UK Student loans: a guide to terms and conditions 2026 to 2027](https://www.gov.uk/government/publications/student-loans-a-guide-to-terms-and-conditions/student-loans-a-guide-to-terms-and-conditions-2026-to-2027)
- [House of Commons Library: Student loan interest rates and repayment thresholds FAQs](https://commonslibrary.parliament.uk/research-briefings/cbp-10654/)

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## FAQ

**Can I take a Postgraduate Master's Loan if I already have a Master's?**

In most cases, no. There are limited exceptions for research Master's, professional conversion courses, and a small number of named pathways. Check the specific eligibility rules for your course.

**Does the loan cover an MBA?**

Yes, in principle. MBA courses are eligible for the Postgraduate Master's Loan if they meet the Level 7 requirement and you meet the eligibility rules. The £13,206 maximum typically covers a small fraction of MBA fees, which can range from £20,000 to £100,000 at UK business schools.

**Does the loan cover a PhD?**

No. The Doctoral Loan is a separate product for PhD-level study, with a higher maximum (around £30,000 across the doctoral programme) and different repayment rules.

**Can my partner's income affect my Postgraduate Master's Loan?**

No. The loan is non-means-tested. Household income does not change the amount you can borrow.

**Will having an undergraduate loan affect my eligibility for the Postgraduate Master's Loan?**

No. The two plans run in parallel. The undergraduate loan does not reduce your Postgraduate Loan amount. They are separate repayment streams once you graduate.

**Is the Postgraduate Master's Loan taxable?**

No. It is not income for tax purposes. Repayments are also not tax-deductible.

**What happens if I drop out part-way through the Master's?**

You repay the loan from the standard April following the date you left, just as if you had completed. The amount you receive is typically reduced if you leave before the second or third instalment. Notify Student Finance England as soon as you decide to withdraw to avoid clawback.

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