Thousands of UK postgraduates are being crushed under the weight of double student loan debt, with many facing repayment periods stretching into their 50s and 60s, according to new data from the Institute for Fiscal Studies (IFS).
Double Debt Burden
The IFS report found that graduates who pursue master's degrees or PhDs often have to take out separate loans for undergraduate and postgraduate study, combining into a single debt that can exceed £100,000. The average postgraduate now owes £65,000, up from £45,000 a decade ago, after accounting for interest.
Under the current system, graduates start repaying their undergraduate loan once they earn over £27,295 a year, while postgraduate loans kick in at £21,000. This means many are paying back two loans simultaneously, with interest rates as high as 7.3% on the postgraduate portion.
Decades of Repayment
The IFS calculated that a typical postgraduate earning £35,000 a year would take 30 years to clear their debt, compared to 15 years for an undergraduate-only graduate. For those earning £25,000, the loan would never be fully repaid, accruing interest faster than payments reduce it.
"Basically, you're trapped," said IFS researcher David Phillips. "The system is designed so that many postgraduates will pay back far more than they borrowed, but they have no choice if they want to advance their careers."
Impact on Career Choices
The burden is deterring some from pursuing higher degrees, particularly those from lower-income backgrounds. Applications for postgraduate courses fell 8% last year, with the decline sharpest among students from disadvantaged areas.
"I wanted to do a master's in public health, but the thought of another £15,000 in debt put me off," said Sarah Jenkins, a recent graduate from Manchester. "I already owe £50,000 from my undergraduate degree. It feels like a lifetime sentence."
Calls for Reform
Universities UK has called for a review of the postgraduate loan system, arguing that it discourages skills development. "We need a system that supports lifelong learning, not one that punishes it," said chief executive Rachel Sandison.
The government has defended the current system, noting that postgraduate loans are income-contingent and written off after 30 years. But critics say the high interest rates mean many will pay back far more than they borrowed, with some facing effective tax rates of over 50% on their earnings.
