Unsurprisingly, the Postgraduate Loan (also known as the Master's Loan) comes with its fair share of small print that can be hard to get your head around at first.
There's a lot of info to take in about funding a master's for students from England, but luckily we've done the hard work for you by simmering it all down to the cold hard facts.
So, if you're considering doing a master's degree now or in the future, or you're already on a postgrad course, read on to find out exactly what master's degree funding is on offer, and whether the Postgraduate Loan is right for you.
Not from England? No worries – we've got guides to Postgraduate Loans in Northern Ireland, Scotland and Wales.
If you meet the following criteria, you should be eligible for a Postgraduate Loan:
Remember that you'll get your loan from the Student Finance body in the part of the UK you're from, not the country you're studying in.
Note that there are some exceptions to these rules, so it's always worth getting in touch with Student Finance England (SFE) to double-check your eligibility. For instance, if you previously received a Master's Loan but dropped out of your course due to illness, you'd still be eligible a second time around.
There are also several additional conditions on which your application will be judged – we've just kept it simple by listing the main criteria.
The cost of master's courses in the UK varies depending on the type of course and university. Remember, master's degrees can be taught or research-based, and that's before you even consider the different costs associated with different subjects and universities.
Postgraduate degrees can cost from around £5,000 a year to well over £30,000, and it's these huge outliers that mean the average cost (according to UCAS) is about £11,000 a year – just under the maximum loan amount.
It's worth noting that this financial support isn't just a Tuition Fee Loan – it's a master's Maintenance Loan, too (to help cover living costs). So even if it does cover your tuition fees, remember that you'll also need money leftover, or from an additional source like a part-time job, to live on. More on this shortly.
To find out exactly how much your course costs, check your university's website.
| Course start date | Maximum loan available |
|---|---|
| On or after 1st August 2024 | £12,471 |
| 1st August 2023 – 31st July 2024 | £12,167 |
| 1st August 2022 – 31st July 2023 | £11,836 |
How much you can apply for depends on when your course started. Crucially, unlike undergraduate loans, Postgraduate Student Loans are not based on your household income.
It's also worth noting that no matter how long you're studying for, you'll still only be entitled to the set maximum amount. You'll just have to split it across multiple years rather than one.
If you don't happen to have a spare £10k lying about to pay for tuition, the Master's Loan is a great door-opener as it makes it easier to study without having to slap down tons of money up front.
In fact, when the loan was introduced in 2016, our National Student Money Survey from that year found that 52% of students were more likely to study for a master's degree following the introduction of financial support.
The big criticism of the Postgraduate Loan is that even the maximum amount may not be enough to cover some course fees, let alone living expenses. You might need to make money during your studies to fund your postgrad education.
If you find the Postgraduate Student Loan isn't enough to cover your master's degree, try some of the best alternative ways to fund your studies below. We also have a guide about the main funding options for postgraduate students.
While there is no specific Postgraduate 'Maintenance' Loan, the Postgraduate Loan is meant to cover both tuition fees and living costs. Since you can spend it however you like, it's important to budget properly.
Credit: Yevgen Kravchenko, kamui29, Bell Photography 423 – Shutterstock
The Postgraduate Loan money is paid directly to you and will be deposited into your bank account in three instalments each year (in the form 33%, 33%, and 34%). If you're studying for two to four years, your total loan will be evenly split between each year of study.
You're free to spend the Postgraduate Loan however you see fit, but remember that it's meant to act as a Tuition Fee Loan and a Maintenance Loan.
You might have some spare cash left over after paying your tuition fees, which could be put towards rent or course materials. On the other hand, your course could cost more than your total loan, in which case you'd have to fund the difference yourself.
If you borrow less than the maximum amount, you can increase the loan amount during your course.
And if you're worried you'll spend it all too quickly, why not put any leftover cash into a student savings account and watch it grow until you need it?
It's also worth knowing that the money isn't means-tested. How much you, your partner or your parents earn won't affect how much you can borrow.
If you're worried about your loan instalments coming too late for you to pay your tuition fees – don't!
Have a chat with your university and arrange to pay your tuition fees in line with when you receive your loan instalments, rather than having to pay up front.
It is possible that the loan could affect any benefits you receive from the government. The Master's Loan will be considered a form of income (presumably because you're allowed to spend the money as you choose, and it doesn't go directly to universities).
Remember that most full-time students won't be eligible for Universal Credit, but there are some exceptions. Find more info in our guide to Universal Credit and Jobseeker's Allowance.
If you do receive any financial support from the government and wish to continue receiving it while you do your master's, it's worth speaking to someone at the DWP (Department for Work and Pensions) about your situation before you apply.
Similar to undergraduate repayments, the Postgraduate Loan repayment terms aren't too bad. Here are the key things to remember about repaying your Master's Loan:
Postgraduate Master's Loan repayments operate slightly differently than undergraduate Student Loan repayments. If you're unsure how yours works, check out our guide to understanding your Student Loan repayments.
The government can (and will!) change the terms of Student Loans at any point.
This means it's not impossible for the repayment percentages to get worse or for the repayment threshold to decrease at some point. The government announcement in 2022 that made big changes to the Student Loan repayment system shows how easily this can happen.
Our comprehensive Student Finance guide covers the key things to know about undergraduate Student Loans.
You can still apply for the Postgraduate Master's Loan if you already have an undergraduate Student Loan to pay off. But, it's worth knowing that you might have to start making repayments on both at the same time, depending on your salary after uni.
Once you meet the salary thresholds, you'll pay 9% on anything above that to your undergraduate Student Loan, plus 6% towards your Postgraduate Loan. However, as the undergraduate threshold for English students is higher than the postgraduate one (£27,295 if you're on a Plan 2 loan as opposed to £21,000), there is a bit of a buffer between the two.
What's more, even if you're repaying your undergraduate Student Loan and Postgraduate Loan at the same time, both will be treated as separate loans.
The table (below) gives a rough idea of what your monthly repayments may be on the postgraduate and/or undergraduate Student Loan. Note that this table assumes you have a plan 2 undergraduate loan – use our guide to find out which Student Loan plan you're on.
| Yearly salary | Undergraduate Loan Repayment (Plan 2) | Postgraduate MA/Doctoral Loan Repayment | Total monthly repayment |
|---|---|---|---|
| £21,000 | £0 | £0 | £0 |
| £27,295 | £0 | £31 | £31 |
| £30,000 | £20 | £45 | £65 |
| £40,000 | £95 | £95 | £190 |
| £50,000 | £170 | £145 | £315 |
Unfortunately, loan repayments don't give you tax breaks. Any income tax you owe is calculated on your salary before Student Loan repayments come out, whether postgraduate or undergraduate.
You'll already have a Student Finance England account if you got your undergraduate loan from them, in which case you can apply for your Postgraduate Master's Loan online.
If you don't already have an SFE account, you can set one up now.
Alternatively, you can download an application form to fill out and send to the SFE by post.
| Course start date | Official first day of academic year | Application deadline |
|---|---|---|
| 1st August – 31st December | 1st September | 1st June |
| 1st January – 31st March | 1st January | 1st October |
| 1st April – 30th June | 1st April | 1st January |
| 1st July – 31st July | 1st July | 1st April |
Student Finance England is now accepting applications for 2024/25 master's funding.
The deadline to apply for a Master's Loan is nine months after the first day of the last year of your course. So, if you're doing a one-year course, this will be nine months after your start date.
Course start dates are banded into four groups, and you can find out when the 'official' start date of your course is using the table above.
Perhaps more so than at undergraduate level, there are plenty of schemes out there to fund your master's studies for you. But, bear in mind that the Postgraduate Loan does have a pretty decent repayment system, so it's worth considering it alongside any other means of funding.
Some funding schemes will help pay your tuition and living costs, while others may just cover your tuition – and usually, the funding doesn't have to be repaid. The money often comes from charitable organisations or companies who'll offer you a job afterwards.
Here are the best alternative ways to find funding for your master's degree in addition to the Postgraduate Master's Loan:
Some commercial loan companies might target you as a postgraduate student, but we think private loans should only ever be used by students as a last resort. We've listed some lower-risk alternative funding methods to consider instead.
Fancy doing a PhD after your master's degree? The government also offers funding for doctoral degrees.
Katie Paterson is an accomplished writer from Glasgow. She studied English Literature at the University of Strathclyde, then went on to do a Research Masters in Literature at the University of Amsterdam. As Lead Editor for Save the Student, Katie has covered topics from career tips to ways to make money go further as a student.
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