UK Postgraduates Shoulder £294.6 Billion Loan Burden as Master’s Debts Trigger Double Repayments
Updated
Updated · Inkl · Jun 27
UK Postgraduates Shoulder £294.6 Billion Loan Burden as Master’s Debts Trigger Double Repayments
1 articles · Updated · Inkl · Jun 27
Summary
England’s outstanding student loan balance rose 10.5% to £294.6 billion in 2025-26, sharpening scrutiny of postgraduate borrowers who often repay undergraduate and master’s loans at the same time.
Postgraduate loans start repayment at £21,000—well below the £29,385 plan 2 threshold—and charge RPI plus 3%, now 6.2% and capped at 6% from September.
£8 billion of the near-£300 billion total is tied to postgraduate study, while lending for those courses rose 8.7% last year to £800 million.
Borrowers say the structure leaves balances rising despite repayments: Francesca Peters repaid £3,067 by February 2026, but £3,186 in interest pushed her debt higher; Mariella James loses about £75 a month to both loans.
Campaigners want thresholds indexed to wages, interest capped at inflation and repayment rates cut, while the Department for Education says capped rates and higher graduate earnings make the system fair.