Student Finance Guide UK — Fees, Loans & How to Apply

Understanding student finance can be confusing. This guide explains how it really works so you can make informed decisions.

How Student Finance Works

Two Types of Loan

Loan Type	What It Covers
Tuition Fee Loan	Fees paid direct to university
Maintenance Loan	Living costs, paid to you

Key Principle

Student loans work more like a graduate tax than a traditional debt:

• Only repay if earning enough
• Repayments linked to income
• Written off after set period
• Doesn’t affect credit rating

Tuition Fees 2025/26

Maximum Fees by Country

Where You Study	Maximum Annual Fee
England	£9,535
Wales	£9,000
Scotland (Scottish students)	£0 (free)
Scotland (English/Welsh/NI students)	£9,250
Northern Ireland	£4,750

Tuition Fee Loan

Feature	Details
Available to	All UK students
Means-tested	No — everyone gets full amount
Paid to	University directly
You receive	Nothing directly

Maintenance Loan 2025/26

Maximum Amounts (England)

Living Situation	Maximum
Living at home	£8,610
Living away (outside London)	£10,544
Living away (in London)	£13,762
Final year adjustment	Slightly lower

Means-Testing

Household Income	What You Get
Up to £25,000	Maximum amount
£25,000 - £62,500	Reduces gradually
Over £65,000	Minimum amount (~65% of max)

Example Maintenance Loans

Household Income	Away from Home (Outside London)
£25,000 or less	£10,544
£35,000	~£9,000
£45,000	~£7,500
£55,000	~£6,500
£65,000+	~£4,700

Student Finance by Nation

England (Student Finance England)

Feature	Details
Tuition fee	Up to £9,535
Maintenance	Means-tested
Repayment Plan	Plan 2 or Plan 5
Apply at	gov.uk/student-finance

Scotland (SAAS)

Feature	For Scottish Students
Tuition fee	£0 (free in Scotland)
Maintenance	Bursary + loan combination
Apply at	saas.gov.uk

Wales (Student Finance Wales)

Feature	Details
Tuition fee	£9,000 maximum
Support	Maintenance grant + loan
Apply at	studentfinancewales.co.uk

Northern Ireland (Student Finance NI)

Feature	Details
Tuition fee	£4,750 (in NI)
Maintenance	Grant + loan
Apply at	studentfinanceni.co.uk

Additional Support

Disabled Students’ Allowance (DSA)

Feature	Details
For	Students with disabilities/learning difficulties
Covers	Equipment, support workers, travel
Means-tested	No
Repayable	No — it’s a grant

NHS Bursaries

Course	Support Available
Nursing	Additional payments available
Midwifery	Grant support
Allied health	Various support

Social Work Bursary

Available for social work degree students — combination of grants and loans.

University Bursaries

Type	Who Offers
Low-income bursaries	Most universities
Academic scholarships	Higher grades
Sports scholarships	Athletic ability
Specific subjects	Shortage areas

Always check what your university offers directly.

How to Apply

Timeline

When	Action
February/March	Applications open
May	Ideal deadline for September start
September	Academic year begins
Ongoing	Apply up to 9 months into course

Required Information

Document	Why Needed
National Insurance number	Identity
Passport/ID	Verification
University details	UCAS course code
Bank details	For maintenance payments
Household income	Means-testing (parents complete)

Application Steps

1. Create Student Finance account
2. Complete application form
3. Parents/guardians complete income section
4. Submit supporting documents
5. Receive Student Finance Entitlement letter
6. Confirm university and course

Repaying Your Loan

Repayment Plans

Plan	Who It Applies To
Plan 1	English/Welsh students before 2012
Plan 2	English/Welsh students 2012-2023
Plan 5	English students from 2023
Plan 4	Scottish students

Repayment Thresholds (2025/26)

Plan	Annual Threshold	Monthly
Plan 1	£24,990	£2,082
Plan 2	£27,295	£2,274
Plan 4	£31,395	£2,616
Plan 5	£25,000	£2,083

How Repayments Work

Feature	Details
Rate	9% of income above threshold
Collection	Through PAYE (automatic)
Self-employed	Through tax return

Example Monthly Repayments

Annual Salary	Plan 2 Monthly Repayment
£25,000	£0
£30,000	£20
£35,000	£58
£40,000	£95
£50,000	£170
£60,000	£245

Interest Rates

Plan 2 Interest

Status	Interest Rate
While studying	RPI + 3%
After graduating (under threshold)	RPI only
After graduating (over threshold)	RPI + 0% to 3% (income dependent)

Plan 5 Interest

Feature	Rate
Fixed rate	RPI only
Simpler	Same rate throughout

When Loans Are Written Off

Plan	Written Off After
Plan 1	Age 65
Plan 2	30 years after graduation
Plan 4	30 years (or age 65)
Plan 5	40 years after graduation

What “Written Off” Means

Event	Outcome
Reach write-off point	Remaining balance cleared
No tax charge	It’s simply cancelled
Most won’t repay in full	This is expected

Is University Worth It Financially?

Things to Consider

Factor	Impact
Subject choice	Affects earning potential
Career goals	Some require degrees
Alternative routes	Apprenticeships, vocational
University reputation	For some careers, matters

Graduate Premium

Statistic	Value
Average graduate salary	Higher than non-graduates
Lifetime earnings boost	Significant for most subjects
Employment rate	Higher for graduates
BUT	Varies hugely by subject

Subjects With Strong Returns

Higher Returns	Lower Returns
Medicine	Creative arts
Dentistry	Media studies
Economics	Philosophy
Engineering	Sociology
Computer science	Agriculture
Law	Combined studies

Source: IFS research

Managing Money at University

Budgeting Your Maintenance Loan

Category	% of Budget
Rent	50-60%
Food	15-20%
Bills	5-10%
Transport	5-10%
Social/other	5-15%

Stretching Your Money

Tip	How
Student discounts	UNiDAYS, Student Beans
Part-time work	Bar, retail, campus jobs
Student bank accounts	Free overdrafts
Meal planning	Batch cooking
Second-hand books	Library, Abe Books

Student Bank Accounts

Feature	What to Look For
Interest-free overdraft	Up to £3,000
Freebies	Railcard, subscriptions
Mobile banking	Convenient access

Summary

Key Point	Remember
Two loans	Tuition (auto) + Maintenance (means-tested)
Repay when earning	Above threshold only
Written off	30-40 years (plan dependent)
Not traditional debt	More like graduate tax
Calculate properly	Use government calculator
Apply early	Don’t miss deadlines