Student Loans are a form of support provided by the UK Government to help students cover the cost of attending university or college. They make higher education accessible to everyone, regardless of background.
Student loans fall into two types:
- Tuition Fee Loans cover your course fees and go directly to your university or college
- Maintenance Loans help with your daily living expenses and go directly into your bank account at the beginning of each term
You begin repaying your loan only after finishing your course and earning above a specific income threshold. Repayments are based on your income, not how much you borrowed.
Who Can Apply for Student Finance?
To be eligible for student finance, you generally need to:
- Be a UK National or have settled/pre-settled status
- Have lived in the UK, Channel Islands or Isle of Man for at least three years before your course begins
- Study at a recognised university or college on an approved course
Students from the EU or other countries may qualify depending on their residency status. Special categories, such as refugees or those with humanitarian protection, may also be eligible.
Which Courses Qualify for Student Loans?
Student loans support a wide range of courses, which include:
- Undergraduate degrees (BA, BSc, BEd)
- Foundation degrees
- Higher National Certificates (HNCs) and Diplomas (HNDs)
- Initial Teacher Training (ITT)
- Integrated Master’s degrees
- Pre-registration healthcare courses
Part-time students must take on at least 25% of a full-time course load each year to qualify.
How Much Can You Borrow?
Loan amounts vary based on where you live and study, and your household income. For the 2025/26 academic year in England:
- Tuition Fee Loans can be up to £9,535
- Maintenance Loans can be up to:
- £8,877 if living at home
- £10,544 if living away from home (outside London)
- £13,762 if living away from home (in London)
Student Finance assesses Maintenance Loans based on household income, so students from lower-income families usually qualify to borrow more.
Extra Financial Help and Grants
You may qualify for additional support depending on your circumstances:
- Childcare Grant and Parents’ Learning Allowance for students with children
- Adult Dependants’ Grant for those supporting another adult
- Disabled Students’ Allowance (DSA) for those with disabilities or learning difficulties
- Hardship Funds from your university for unforeseen financial difficulties
Students who are estranged from their parents, have left care or come from low-income backgrounds can also access additional support.
How to Apply for Student Finance
Applications usually open in March. To ensure funding arrives on time, apply by 31st May. You need to:
- Create an online account with Student Finance (England, Wales, Scotland or Northern Ireland)
- Complete the application form and upload required documents
- Provide your household income details, if necessary
- Reapply for funding every academic year
You also need to update your application if anything changes, such as your address, income or course.
Repaying Your Student Loan
Repayments begin in April after your leave your course, but only if your income exceeds the repayment threshold. Your employer will automatically deduct repayments from your salary.
| Plan Type | Annual Threshold | Repayment Rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 4 | £31,395 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
For Plan 5 loans, which applies to most students starting from 2023 in England, you repay 9% of your income over £25,000. So, if you earn £28,000 annually, you will repay 9% of £3,000 (£270/year or about £22.50/month).
However, if self-employed or moving abroad, you must arrange payments with the Student Loans Company. Read More Here!
Interest Rates on Student Loans
Interest starts accruing as soon as the Student Loans Company pays out your loan. It is based on the Retail Price Index (RPI) and may depend on your income.
However, for Plan 5 loans, the interest rate is capped and linked to inflation. This means the balance of your loan might rise over time, but your monthly repayments will always depend on your earnings.
When Is Your Loan Written Off?
Student loans are not lifelong obligations. Your repayment plan determines when the Student Loans Company writes off your loan after a set period:
- 25 years for Plan 1
- 30 years for Plan 2
- 30 years for Plan 4
- 40 years after the April you become eligible to repay for Plan 5
The Student Loans Company may write off your loan if your income remains below the repayment threshold, meaning you might not repay the full loan amount.
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