Postgraduate Loan (PGL)

The Postgraduate Loan (PGL) is a separate student-loan plan from the undergraduate Plans 1, 2, 4 and 5. It applies to Master's loans (introduced in 2016/17) and Doctoral loans (introduced in 2018/19) borrowed by students in England, Wales and Northern Ireland. Scotland operates a separate postgraduate loan system that uses Plan 4-style undergraduate thresholds.

Repayments start in the April after course completion, at 6% of earnings above £21,000 per year (£1,750 per month or £403 per week) - roughly half the £24,990 threshold of Plan 2. Crucially, PGL repayments run alongside any undergraduate plan: a graduate with both a Plan 2 and a PGL pays 9% on income above £27,295 plus 6% on income above £21,000, giving a combined 15% marginal rate in the band where both apply. Loans are written off 30 years after the April repayments begin.

Worked example: Hannah graduated from her PhD in 2025, started a £45,000 job in October 2025 and ticked the PGL repayment box on her starter checklist. From April 2026 (the first April after course completion) her employer deducts PGL at 6% × (£45,000 − £21,000) / 12 = £120 a month. She also has a Plan 2 undergraduate loan, deducted at 9% × (£45,000 − £27,295) / 12 = £133 a month. Combined student-loan deduction is £253 a month, shown as two separate negative lines on her payslip ('SL - Plan 2' and 'PGL'). PGL is HMRC-administered through PAYE in the same way as other student loans; on year-end reconciliation the cumulative liability is reported via FPS and matched against SLC's records.