Postgraduate Loans for Masters Students

Funding Your Master’s Degree in the UK: What You Need to Know

If you're planning to start a master’s course in the UK in the 2025/26 academic year, you could be eligible for a Postgraduate Master’s Loan to help cover both tuition fees and living costs.

How Much Can You Get?
If your course starts on or after 1 August 2025 and you're studying in England, you could borrow up to:£12,858 in total. You’ll be charged interest from the day you get the first payment

This money is paid directly to you, and you can spend it on tuition, rent, food — whatever you need to support your studies.

Important: The loan amount and rules are different if you normally live in:

• Scotland – SAAS Website
• Wales – Student Finance Wales
• Northern Ireland – Student Finance NI

Simply moving to another part of the UK for university doesn't make you a resident there for funding purposes.

Eligibility Checklist
There are three rules that determine your eligibility for a Masters Loan: The course, your age and your residency.

• Your Course: Is a standalone full Master’s degree (not a top-up course), is worth at least 180 credits, and lasts 1–2 years full-time, or 2–4 years part-time (not longer than double the full-time length)
• Your Age: You’re under 60 on the first day of the first academic year of your course
• You normally live in England as a UK or Irish citizen, or have settled status under the EU Settlement Scheme or indefinite leave to remain. You’ve lived in the UK, Channel Islands, or Isle of Man for 3 years in a row before the course starts

Where does the money go?

The loan is paid direct to you in three instalments per academic year: 33%, 33%, 34%. If your course is longer than a year, the loan is split equally across all years.

Payments start after your course begins and your university confirms your registration. You’ll receive a letter (and see in your online account) with payment dates.

Extra Support
If you have a disability, you may be able to get additional funding — ask your university or check with Student Finance England.

Repaying your loan

You only start repaying your Masters Loan once you’re earning over £21,000 a year. You repay 6% of anything you earn over £21,000

For example:

You start a new job after you graduate with your masters degree, and the annual salary before tax and deductions is £33,000/year
Your normal monthly income: £2,750
The Masters Loan income threshold : £1,750 (£21,000/12)
Difference = £1,000 → 6% of that = £60/month repayment.

Repayments are based on your income, not how much you borrowed.

What About Interest?

Interest is added from the day you receive the loan, currently set at:

7.3% (from 1 September 2024 to 31 August 2025). This is based on: 3% base rate, plus the Retail Price Index (RPI) for inflation, which was 4.3% in March 2024

This means the interest rate can change yearly. The Government has frozen the interest rate in previous years.

Thinking About a PhD?

Yes — there’s also a Postgraduate Doctoral Loan available. Learn more here.

Have More Questions?

Ask the universities you're applying to — they’re there to help!

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