Student Finance (funded by the government) helps students from any financial background to go to university.
The support package typically includes:
- A Tuition Fee Loan to cover the full cost of course fees
- A Maintenance Loan to help with living costs (this is means-tested based on household income)
For students starting university in 2026–2027, universities in England can charge up to £9,790 per year for tuition.
Eligible students can access a Tuition Fee Loan to cover this cost, meaning no upfront payment is required.
Maintenance support is partly dependent on household income, so students and/or families may be expected to contribute towards living costs.
Repaying Your Student Loan
Student loan repayments differ significantly from traditional loans and are often described as a form of “graduate contribution”:
- You only begin repayments after leaving your course and once earning over £25,000 per year
- You repay 9% of anything earned above this threshold
- Repayments are automatically deducted through your salary (PAYE)
- If your income drops below the threshold, repayments stop
Current system (Plan 5 – for students starting from 2023 onwards):
- Repayment threshold: £25,000
- Interest rate: Linked to inflation only (RPI)
- Loan write-off: Any remaining balance is written off after 40 years
Key Points to Understand
- Most students will not repay anything while studying
- Repayments depend on income, not the total amount borrowed
- The system ensures repayments remain manageable and proportionate to earnings
Further Information
For more details on Student Finance, visit:
https://studentfinance.campaign.gov.uk/
For guidance on completing your application:
https://www.gov.uk/guidance/student-finance-england-how-to-guide