Undergraduate vs Postgraduate Loan
Someone with both loans repays both at once out of the same pay. This compares a Plan 2 undergraduate loan with the Postgraduate Loan.
Figures as of .
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| Plan 2 | Postgraduate Loan | |
|---|---|---|
| Repay above | £29,385 | £21,000 |
| Rate above threshold | 9% | 6% |
| Interest now | 6.0% (max) | 6.0% (max) |
| Interest rule | RPI + 3% while studying, then RPI to RPI + 3% based on income, subject to the current cap | RPI + 3%, subject to the current cap; not based on income |
| Write-off rule | 30 years after the April you were first due to repay | 30 years after the April you were first due to repay |
Monthly repayment
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| Salary | Plan 2 | Postgraduate Loan | Less each month |
|---|---|---|---|
| £30,000 | £5 | £45 | Plan 2 |
| £45,000 | £117 | £120 | Plan 2 |
| £60,000 | £230 | £195 | Postgraduate Loan |
Which plan takes less depends on salary. Interest and the write-off decide the total over the loan's life, and that needs a forecast.
Each plan in full
About these estimates
Estimates, not financial advice. Check the assumptions and sources on this page before making a decision.
Limitations
Results may be inaccurate and government policy can change. Do your own research. You use this information at your own risk; we cannot accept liability if things go wrong.