Student finance
How does student finance work?
You take out two loans: a Tuition Fee Loan (paid directly to your university, up to £9,790/year) and a Maintenance Loan (paid to you each term for living costs). You repay both together, as one loan, once you're earning over the threshold — currently £25,000/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 (which varies by income and location) and most students graduate with total debt of £45,000–£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're earning over £25,000. You pay 9% of anything above that threshold. Earn £28,000? You pay 9% of £3,000 = £270/year (£22.50/month). Earn less than £25,000? You pay nothing, and the loan is written off after 40 years.
When should I apply?
As early as possible — the portal for 2026/27 entry opens in the spring. You don't 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, which arrives at the start of term.
In this guide
- The student finance system explained
- Tuition fee loan 2026/27
- Maintenance loan rates & amounts
- Scotland, Wales & Northern Ireland
- Plan 5 repayment explained
- Repayment calculator
- Student loan myths — busted
- Bursaries, scholarships & hardship funds
- How to apply step by step
- Making your money last
- Frequently asked questions
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, 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. And 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 of the anxiety students and families feel about student debt comes from treating it like a bank loan. It isn't. It behaves more like a graduate tax — one you only pay when you can afford to.
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 is the first rise in nearly a decade, adding 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, and you don't need to do anything beyond applying for student finance to set it up. It is not means-tested: every eligible student gets the full tuition fee loan regardless of household income.
Tuition fees across the UK
| Nation | Fee for home students | Notes |
|---|---|---|
| England | Up to £9,790/year (2026/27) | Applies to home students studying anywhere in England. Loan available to cover in full. |
| Scotland | £0 for Scottish domiciled students | Scottish students studying in Scotland pay no tuition fees — covered by SAAS. English/Welsh/NI students studying in Scotland pay up to £9,790. |
| Wales | Up to £9,790/year | Welsh students receive a fee grant that reduces their fee loan — effective contribution is lower. Details via Student Finance Wales. |
| Northern Ireland | Up to £4,855/year for NI-domiciled students | Significantly lower than the rest of the UK for home students. English/Scottish/Welsh students studying in NI pay up to £9,535. |
International and EU students: fees are set individually by each university and are typically much higher — often £15,000–£40,000/year for undergraduate courses. Check the specific university's international fees page.
Maintenance loan: rates and amounts for 2026/27
The maintenance loan is the money paid directly into your bank account to help with living costs. Unlike the tuition fee loan, it is means-tested — the amount you receive depends on your household income and where you'll be studying.
Maintenance loan rates for 2026/27 have increased by 2.71% compared to 2025/26. The maximum amounts are shown below — most students receive less than the maximum, as amounts taper based on household income above £25,000.
| 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 with income of £25,000 or less. Your loan reduces by £1 for every £4.16 of household income over £25,000. At household income above £43,854, you receive only the minimum non-means-tested portion. Use the official Student Finance calculator to estimate your individual entitlement.
How household income affects your loan
| Household income | Approx. maintenance loan (living away, outside London) | Monthly equivalent |
|---|---|---|
| £25,000 or less | £10,830 (maximum) | ~£902/month |
| £30,000 | ~£9,630 | ~£803/month |
| £40,000 | ~£7,228 | ~£602/month |
| £50,000 | ~£5,892 | ~£491/month |
| £60,000 | ~£4,556 | ~£380/month |
| £70,000+ | Minimum (non-means-tested portion only) | ~£340/month (est.) |
Figures are estimates based on the 2026/27 taper rate of £1 reduction per £4.16 of income over £25,000. Use the official SFE calculator for your precise figure.
Scotland, Wales & 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/year (loan + bursary combined).
| Support type | Amount | Repayable? |
|---|---|---|
| Tuition fees | £0 (paid by SAAS) | N/A |
| Student loan (bursary element) | Up to ~£2,000/year (lowest income) | No |
| Student loan (repayable element) | Up to ~£9,400/year (combined) | Yes |
| Repayment threshold | £31,395/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 (max) | Up to £9,790/year | Yes (via loan) |
| Wales Living Cost Grant (lowest income) | Non-repayable portion of total package | No |
| Total support package (max) | Up to £15,415/year | Mix of grant & loan |
| Repayment threshold | £25,000/year (Plan 2 terms apply) | 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, with the grant element meaning many students receive substantial non-repayable support.
| Support type | Amount | Repayable? |
|---|---|---|
| Tuition fees (NI students) | Up to £4,855/year | Yes (via loan) |
| Maintenance loan | Up to £11,391/year | Yes |
| Maintenance grant (household income <£41,065) | Up to £3,475/year | No |
| Repayment threshold | £25,000/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're on Plan 5. This is the current repayment plan and is significantly different from Plan 2, which applied to students who started before 2023. Understanding your plan is important — particularly if older siblings or parents tell you about their own student loan experience, which may be on different terms.
April after graduation
You don't start repaying until the April after you leave your course — even if you leave early. If you graduate in summer 2029, you won't make any repayment until April 2030 at the earliest. And only if you're earning above the threshold.
£25,000/year
You pay nothing until your salary exceeds £25,000. From April 2026, the threshold is confirmed at £25,000 — that's £2,083/month or £480/week. It is due to increase with RPI inflation from April 2027 onwards, though this is subject to government policy.
9% above threshold only
You repay 9% of whatever you earn above £25,000. Earn £28,000 → pay 9% of £3,000 = £270/year (£22.50/month). Earn £40,000 → pay 9% of £15,000 = £1,350/year (£112.50/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+3% as Plan 2 did. This means your debt increases with inflation, but not above it. Current RPI is around 3–4%.
After 40 years
Any remaining balance is written off completely after 40 years from the April you first become eligible to repay. For most students, this means the loan is cleared by age 62–65. Plan 5's 40-year term is longer than Plan 2's 30 years — this is the main downside for high earners.
Repayments continue
Your debt doesn't disappear if you move abroad. You're 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+) | Plan 2 (started before Aug 2023) |
|---|---|---|
| Repayment threshold | £25,000/year | £28,470/year (frozen until 2027, then RPI-linked) |
| Interest rate | RPI only | RPI + 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 = more repaid; longer term = more time to pay | Higher threshold = less repaid monthly; shorter write-off |
Plan 5 repayment calculator
Use this to see exactly how much you'd repay each month under Plan 5 at different income levels. Remember — you pay nothing until you earn above £25,000.
💳 Monthly repayment estimator
Adjust the sliders to see your 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's 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 their student loan is not financially optimal. If you're unlikely to repay the full balance in 40 years (which applies to most graduates), overpaying means paying more than you'd 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. It can indirectly affect mortgage affordability assessments because lenders consider student loan repayments as a monthly outgoing — but this is different from impacting your credit rating.
You shouldn't take the maintenance loan if you don't need it, to minimise debt.
For most students, taking the full maintenance loan is the right financial decision — even if family can supplement income. The money can be put in a savings account earning interest, and the loan conditions mean you'll only repay it if you earn enough to afford it. Declining it doesn't 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 your maintenance loan and your living costs — but this is not legally enforceable. If your family can't or won't contribute, speak to your university's hardship fund team. There is support available for students in this situation.
Bursaries, scholarships & 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 doesn't 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 — free money. Some examples from 2026 entry:
| University / scheme | Amount | Eligibility |
|---|---|---|
| Oxford Crankstart Scholarship | Up to £6,270/year | UK students, household income £32,500 or less |
| Cambridge Bursary Scheme | Up to £3,500/year | 3,300+ bursaries for low and middle-income families |
| Manchester Sadler Bursary (care leavers) | £10,000/year | Care-experienced or care leaver students |
| Typical Russell Group bursary | £1,000–£3,000/year | Household income below £25,000–£35,000 (varies by uni) |
| Post-92 / modern universities | £500–£1,500/year | Household income below £25,000–£27,500 (varies by uni) |
Every university publishes its own bursary scheme. Check the specific financial support page of every university you're considering before applying — some bursaries are awarded automatically; others require a separate application.
Scholarships
Scholarships are typically merit-based (academic achievement, sport, music, subject-specific) rather than income-based. They're competitive and require applications — but they're worth pursuing if you have strong grades or relevant achievements. Sources include your university, professional bodies (IET, BPS, RICS), charitable trusts, and some employers.
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 & Parents' Learning Allowance
The Childcare Grant covers up to 85% of childcare costs (up to £188.90/week for one child). The Parents' Learning Allowance provides additional non-repayable support for costs directly related to your course. 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 on top.
NHS Learning Support Fund
Students on nursing, midwifery, and most allied health professional courses receive a training grant of £5,000/year (non-repayable), plus specialist subject payments and additional parental support. This is 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. If you're considering teaching, these are a major financial incentive.
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'll need your National Insurance number and passport or driving licence. Do this as soon as the portal opens for your entry year — typically in the spring before your September start.
Step 2: Apply provisionally before your place is confirmed
You don't need a confirmed university place to apply. Select your most likely course and university — you can update this 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, if applicable) will need to provide their household income for the 2024/25 tax year. They do this through a separate SFE online form. Without this, you'll only receive the non-means-tested minimum.
Step 4: Submit your application and await a decision
Allow approximately 4 weeks for processing. You may be asked to provide additional evidence. Check your account regularly. Once approved, you'll receive a Student Finance Notification letter showing how much you'll receive.
Step 5: Confirm attendance at your university
Your university must confirm your registration before payments are released. Register with your university as soon as you arrive — don't 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 doesn't renew automatically. Set a reminder and apply as soon as the new-year portal opens, typically in the spring. Income information needs to be updated each year too.
Making your student finance last
Your maintenance loan arrives in three lump sums across the year. The students who run out of money before the next instalment aren't always the ones with the least — they're often the ones without a plan. Here's how to make it work.
Build a term budget before each instalment arrives
Divide your term's instalment by the number of weeks in the term. That's your weekly budget. Subtract rent first, then work out what's left for food, transport, and everything else. Do this before the money arrives — not after it's 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 0% overdraft with no perks beats a £500 overdraft with a Tastecard for most students.
Consider part-time work
Most students work during term time. Aim for no more than 15–20 hours per week to avoid impacting your studies. Student-facing jobs (bar work, retail, tutoring, campus jobs) are usually the most flexible around your schedule.
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's app or a free tool like Monzo's spending breakdown. The point isn't to restrict yourself — it's to understand where your money actually goes, so you can make deliberate choices rather than discovering you've spent £200 on Deliveroo in six weeks.
Know where to go if you're struggling
Your university's student support service and your students' union both have hardship funds and financial advice available. Use them. 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 hasn't seen before.
Frequently asked questions
What is the difference between Plan 2 and Plan 5?
Does my 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 won't provide their income details?
Do I have to pay back my loan if I never graduate or get a good job?
What is the Lifelong Learning Entitlement (LLE)?
Can international students get student finance?
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