Student Finance UK 2026/27: The Complete Guide
How the student loan system actually works, maintenance loan rates, Plan 5 repayment explained clearly, bursaries and grants most students miss, how to apply, and how to make your money last.
How does student finance work?
You take out two loans: a Tuition Fee Loan (paid directly to your university, up to £9,790 per year) and a Maintenance Loan (paid to you each term for living costs). You repay both together as one loan, once you are earning over £25,000 per year.
How much will I borrow in total?
For a 3-year degree at maximum fees, your tuition fee loan alone is around £29,370. Add the maintenance loan and most students graduate with total debt of £45,000 to £65,000. This sounds alarming, but the repayment terms mean most graduates never pay it all back.
When do I start repaying?
Not until the April after you graduate, and only if you are earning over £25,000. You pay 9% of anything above that threshold. Earn £28,000 and you pay 9% of £3,000 which is £270 per year or £22.50 per month. Earn less than £25,000 and you pay nothing.
When should I apply?
As early as possible. The portal for 2026/27 entry opens in spring. You do not need a confirmed university place to apply. Apply provisionally using your most likely choice and update it later. Late applications can delay your first payment.
- The student finance system explained
- Tuition fee loan 2026/27
- Maintenance loan rates and amounts
- Scotland, Wales and Northern Ireland
- Plan 5 repayment explained
- Repayment calculator
- Student loan myths: busted
- Bursaries, scholarships and hardship funds
- How to apply step by step
- Making your money last
- FAQs
The student finance system explained
Student finance in England is administered by Student Finance England (SFE), part of the Student Loans Company. It consists of two main loans: one for tuition fees and one for living costs, plus additional grants, bursaries and allowances depending on your circumstances.
The loans are not like commercial loans. Repayments are based entirely on your income, not the size of your debt. You never repay more than 9% of what you earn above the threshold, so the monthly amount is always proportional to what you can afford. Any remaining balance is written off after 40 years regardless of how much is left.
Understanding this distinction is the most important thing about student finance. Most anxiety about student debt comes from treating it like a bank loan. It is not. It behaves more like a graduate contribution: one you only pay when you can afford to, and only on the earnings above the threshold.
Tuition fee loan 2026/27
Tuition fees in England are capped at £9,790 per year for 2026/27, the first increase since 2017. This adds approximately £540 per year and around £1,620 to a three-year course compared to the previous £9,250 cap.
The tuition fee loan covers this in full. It is paid directly to your university: you never see this money in your bank account. It is not means-tested, so every eligible student gets the full tuition fee loan regardless of household income. You do not need to do anything beyond applying for student finance to set it up.
- England: Up to £9,790 per year (2026/27). Loan available to cover in full.
- Scotland: £0 for Scottish-domiciled students studying in Scotland (covered by SAAS). English, Welsh and NI students in Scotland pay up to £9,790.
- Wales: Up to £9,790 per year. Welsh students receive a fee grant that reduces their effective contribution. Details via Student Finance Wales.
- Northern Ireland: Up to £4,855 per year for NI-domiciled students, significantly lower than the rest of the UK. English, Scottish and Welsh students studying in NI pay up to £9,535.
- International students: Fees are set individually, typically £15,000 to £40,000 per year. Check the specific university's international fees page.
Maintenance loan: rates and amounts 2026/27
The maintenance loan is paid directly into your bank account to help with living costs. Unlike the tuition fee loan, it is means-tested: the amount depends on your household income and where you will be studying. Rates for 2026/27 have increased by 2.71% compared to 2025/26.
| Student situation | Maximum loan 2026/27 | Per month (12 months) | Per term (3 terms) |
|---|---|---|---|
| Living away from home, outside London | £10,830 | £902 | £3,610 |
| Living away from home, in London | £14,135 | £1,178 | £4,712 |
| Living with parents | £7,849 | £654 | £2,616 |
Maximum rates apply to students from households earning £25,000 or less. Your loan reduces by £1 for every £4.16 of household income over £25,000. Use the official SFE calculator to estimate your individual entitlement.
How household income affects your loan
| Household income | Approx. maintenance loan (away, outside London) | Monthly equivalent |
|---|---|---|
| £25,000 or less | £10,830 (maximum) | ~£902 per month |
| £30,000 | ~£9,630 | ~£803 per month |
| £40,000 | ~£7,228 | ~£602 per month |
| £50,000 | ~£5,892 | ~£491 per month |
| £60,000 | ~£4,556 | ~£380 per month |
| £70,000+ | Minimum non-means-tested portion only | ~£340 per month (est.) |
Scotland, Wales and Northern Ireland
Student finance is devolved. Each nation of the UK has its own system, its own body and its own rates. Your entitlement depends on where you live (your domicile), not where you study.
Student Awards Agency Scotland (SAAS)
Scottish-domiciled students studying in Scotland pay no tuition fees: these are covered in full by the Scottish Government via SAAS. The total support package for lower-income students can reach up to £11,400 per year (loan plus bursary combined).
| Support type | Amount | Repayable? |
|---|---|---|
| Tuition fees | £0 (paid by SAAS) | No |
| Bursary element (lowest income) | Up to ~£2,000 per year | No |
| Repayable loan element | Up to ~£9,400 per year combined | Yes |
| Repayment threshold | £31,395 per year | 9% above threshold |
| Write-off period | 30 years |
Apply via saas.gov.uk. Scottish students studying outside Scotland are subject to different fee arrangements.
Student Finance Wales
Welsh-domiciled students receive a combination of loans and non-repayable grants. The total support package can reach up to £15,415, one of the most generous in the UK, with the split between grant and loan depending on household income.
| Support type | Amount | Repayable? |
|---|---|---|
| Tuition fees (maximum) | Up to £9,790 per year | Yes (via loan) |
| Wales Living Cost Grant (lowest income) | Non-repayable portion of total package | No |
| Total support package (maximum) | Up to £15,415 per year | Mix of grant and loan |
| Repayment threshold | £25,000 per year | 9% above threshold |
Apply via studentfinancewales.co.uk. Welsh students receive the same package whether they study in Wales or elsewhere in the UK.
Student Finance Northern Ireland
Northern Irish-domiciled students benefit from significantly lower tuition fees and a combination of repayable loans and non-repayable maintenance grants.
| Support type | Amount | Repayable? |
|---|---|---|
| Tuition fees (NI students) | Up to £4,855 per year | Yes (via loan) |
| Maintenance loan | Up to £11,391 per year | Yes |
| Maintenance grant (household income below £41,065) | Up to £3,475 per year | No |
| Repayment threshold | £25,000 per year | 9% above threshold |
| Write-off period | 25 years |
Apply via studentfinanceni.co.uk.
Plan 5 repayment: explained clearly
If you started university on or after 1 August 2023 in England, you are on Plan 5. This is significantly different from Plan 2, which applied to students who started before 2023. Older siblings or parents may be on different terms, so their experience of repayment may not reflect yours.
April after graduation
You do not start repaying until the April after you leave your course. If you graduate in summer 2029, you will not make any repayment until April 2030 at the earliest, and only if you are earning above the threshold.
£25,000 per year
You pay nothing until your salary exceeds £25,000. That is £2,083 per month or £480 per week. The threshold is confirmed at £25,000 from April 2026 and due to increase with RPI inflation from April 2027, subject to government policy.
9% above threshold only
You repay 9% of whatever you earn above £25,000. Earn £28,000 and you pay 9% of £3,000 which is £270 per year (£22.50 per month). Earn £40,000 and you pay 9% of £15,000 which is £1,350 per year (£112.50 per month). The size of your debt has no effect on your monthly payment.
RPI inflation only
Plan 5 charges interest at the Retail Price Index (RPI) rate only, not RPI plus 3% as Plan 2 did. Your debt increases with inflation but not above it. Current RPI is approximately 3 to 4%.
After 40 years
Any remaining balance is written off completely after 40 years from the April you first become eligible to repay. Plan 5's 40-year term is longer than Plan 2's 30 years. This is the main downside for high earners who would have cleared the loan under Plan 2 terms.
Repayments continue
Your debt does not disappear if you move abroad. You are required to notify the Student Loans Company and make repayments based on an equivalent income threshold for your country of residence. The SLC can pursue overseas debts.
Plan 5 vs Plan 2: the key differences
| Feature | Plan 5 (started Aug 2023 onwards) | Plan 2 (started before Aug 2023) |
|---|---|---|
| Repayment threshold | £25,000 per year | £28,470 per year (frozen until 2027, then RPI-linked) |
| Interest rate | RPI only | RPI plus up to 3% while studying; RPI only once income below £28,470 |
| Write-off period | 40 years | 30 years |
| Repayment rate | 9% above threshold | 9% above threshold |
| Impact on lower earners | Same: pay nothing below threshold | Same: pay nothing below threshold |
| Impact on higher earners | Lower threshold means more repaid monthly; longer write-off | Higher threshold means less repaid monthly; shorter write-off |
Plan 5 repayment calculator
Use this to see exactly how much you would repay each month under Plan 5 at different income levels. You pay nothing until you earn above £25,000.
Monthly repayment estimator
Adjust the sliders to see estimated monthly repayments at different income and loan balance levels.
Student loan myths: busted
Student finance is one of the most misunderstood topics in UK education. Here are the most common myths and what is actually true.
A student loan is like a normal bank loan: you have to pay it all back with interest.
Around 75% of graduates never repay their full loan. Repayments are capped at 9% of income above £25,000. The remaining balance is written off after 40 years. Low earners pay very little or nothing.
The size of your debt determines how much you pay each month.
Monthly repayments depend entirely on your income, not your balance. Someone with £80,000 of debt earning £28,000 pays the same monthly amount as someone with £40,000 of debt on the same salary.
You should pay off your student loan as fast as possible to avoid interest.
For most graduates, overpaying is not financially optimal. If you are unlikely to repay the full balance in 40 years (which applies to most graduates), overpaying means paying more than you would ever have been required to. Prioritise an emergency fund, ISA or pension first. Seek financial advice for your specific situation.
A student loan affects your credit score and ability to get a mortgage.
A student loan does not appear on your credit file and does not directly affect your credit score. Mortgage lenders may consider loan repayments as a monthly outgoing when assessing affordability, but this is different from impacting your credit rating.
You should not take the maintenance loan if you do not need it, to minimise debt.
For most students, taking the full maintenance loan is the right decision. The money can be put in a savings account earning interest, and you only repay it if you earn enough to afford it. Declining it does not reduce your tuition fee loan.
Your parents have to pay the "expected parental contribution" directly to you.
The SFE assessment assumes parents will contribute to the gap between the maintenance loan and living costs, but this is not legally enforceable. If your family cannot or will not contribute, speak to your university's hardship fund team. Support is available.
Bursaries, scholarships and hardship funds
Beyond the standard student finance system, there are significant amounts of non-repayable funding available to students: most of which goes unclaimed every year. If your maintenance loan does not cover your costs, these are the places to look first.
University bursaries
Most universities offer their own means-tested bursaries on top of the government maintenance loan. These are non-repayable grants. Some examples from 2026 entry:
| Scheme | Amount | Eligibility |
|---|---|---|
| Oxford Crankstart Scholarship | Up to £6,270 per year | UK students, household income £32,500 or less |
| Cambridge Bursary Scheme | Up to £3,500 per year | 3,300+ bursaries for low and middle-income families |
| Manchester Sadler Bursary (care leavers) | £10,000 per year | Care-experienced or care leaver students |
| Typical Russell Group bursary | £1,000 to £3,000 per year | Household income below £25,000 to £35,000 (varies) |
| Post-92 / modern universities | £500 to £1,500 per year | Household income below £25,000 to £27,500 (varies) |
Every university publishes its own bursary scheme. Check the financial support page of every university you are considering. Some bursaries are awarded automatically; others require a separate application.
Hardship funds
Every university in England has an access to learning fund or hardship fund: money set aside for students experiencing unexpected financial difficulty. This could cover emergency costs, a rent shortfall, equipment failure or a sudden change in family circumstances. You can apply at any time during the academic year. These funds are significantly underused.
Additional grants and allowances
Disabled Students' Allowance (DSA)
Non-repayable funding for students with a disability, long-term health condition, mental health condition or specific learning difficulty including dyslexia. Can cover specialist equipment, non-medical helpers and extra travel costs. Apply through Student Finance England. No impact on maintenance loan.
Childcare Grant and Parents' Learning Allowance
The Childcare Grant covers up to 85% of childcare costs (up to £188.90 per week for one child). The Parents' Learning Allowance provides additional non-repayable support for course-related costs. Both are means-tested and applied for through Student Finance England.
Care leaver support (new for 2026)
From 2026/27, all eligible care leavers in England automatically receive the maximum maintenance loan entitlement regardless of household income, removing the administrative barrier that previously caused up to 30% of eligible care leavers to miss full support. Many universities also offer additional care leaver bursaries.
NHS Learning Support Fund
Students on nursing, midwifery and most allied health professional courses receive a training grant of £5,000 per year (non-repayable), plus specialist subject payments and parental support. In addition to the standard maintenance loan. Apply through the NHS Business Services Authority.
Teacher training bursaries
Shortage subjects attract significant non-repayable bursaries for PGCE and School Direct trainees: up to £29,000 for physics, mathematics and chemistry. Available through the Department for Education. A major financial incentive if you are considering teaching.
Finding scholarships and bursaries
Use Blackbullion's Funding Hub and Turn2Us to search for scholarships and grants by subject, background and circumstances. Many smaller charitable trusts offer funding that most students never find out about.
How to apply for student finance: step by step
Step 1: Create your Student Finance England account
Go to gov.uk/student-finance and create a login. You will need your National Insurance number and passport or driving licence. Do this as soon as the portal opens for your entry year, typically in spring before your September start.
Step 2: Apply provisionally before your place is confirmed
You do not need a confirmed university place to apply. Select your most likely course and university and update it later if your plans change after results day. Applying early means your loan is processed and ready to pay at the start of term.
Step 3: Provide household income information
If you want more than the minimum maintenance loan, your parents or partner will need to provide household income for the 2024/25 tax year through a separate SFE online form. Without this, you will only receive the non-means-tested minimum.
Step 4: Submit and await a decision
Allow approximately 4 weeks for processing. You may be asked for additional evidence. Check your account regularly. Once approved, you will receive a Student Finance Notification letter showing how much you will receive.
Step 5: Confirm attendance at your university
Your university must confirm your registration before payments are released. Register as soon as you arrive: do not delay. Your first maintenance loan instalment is paid directly into your bank account once your attendance is confirmed.
Step 6: Reapply every year
You must reapply for student finance at the start of each academic year. It does not renew automatically. Apply as soon as the new-year portal opens, typically in spring. Income information needs to be updated each year.
Making your student finance last
Your maintenance loan arrives in three lump sums across the year. The students who run out of money are not always the ones with the least: they are often the ones without a plan.
Build a term budget before each instalment arrives
Divide your term's instalment by the number of weeks in the term. That is your weekly budget. Subtract rent first, then work out what is left for food, transport and everything else. Do this before the money arrives, not after it is half spent.
Choose a student account with the best overdraft
An interest-free overdraft is the most financially useful feature of a student bank account. Compare limits carefully. A £1,500 zero percent overdraft with no perks beats a £500 overdraft with a discount card for most students.
Consider part-time work
Most students work during term time. Aim for no more than 15 to 20 hours per week to avoid impacting your studies. Student-facing jobs (bar work, retail, tutoring, campus jobs) are usually the most flexible around your timetable.
Maximise student discounts
TOTUM (NUS card), UNiDAYS and Student Beans together cover thousands of retailers, restaurants, transport and services. Always check for a student discount before buying anything. The cumulative savings over three years are significant.
Track your spending for the first term
Use your bank app or a free tool like Monzo's spending breakdown. The point is not to restrict yourself: it is to understand where your money actually goes so you can make deliberate choices rather than surprises.
Know where to go if you are struggling
Your university's student support service and your students union both have hardship funds and financial advice. The earlier you ask for help, the more options are open to you. There is no financial situation a student presents that a university support team has not seen before.
Student finance: FAQs
What is the difference between Plan 2 and Plan 5?
Does a student loan affect my ability to get a mortgage?
Should I pay off my student loan early?
What happens if I drop out of university?
Can I get student finance if my parents will not provide their income details?
Do I have to repay if I never graduate or get a well-paid job?
What is the Lifelong Learning Entitlement (LLE)?
Can international students get student finance?
More university preparation guides
Everything else you need before September.