UK Student Loans & Finance

Understand student loans before you borrow.

Student finance can help cover tuition fees and living costs, but the rules around eligibility, repayment plans and income-based repayments can be difficult to understand. Learn how UK student loans work and what to consider before you apply.

Explore Student Loans → Understand Repayments

Tuition Fee Loan Helps cover course fees

Maintenance Loan Helps with living costs

Repayment Plans Based on your circumstances

STUDENT FINANCE Tuition + Living Costs

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KEY POINT Repayments depend on income

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Student Finance Explained

What is a student loan?

It is borrowing designed around education. Student loans can help eligible students meet the cost of higher education and living expenses. Repayment normally works differently from many ordinary consumer loans.

A UK student loan is a form of government-backed student finance that can help eligible students cover the cost of higher education. Depending on your circumstances, this can include support towards tuition fees and living costs.

For students in England, Tuition Fee Loans are generally paid directly to the university or college, while Maintenance Loans are designed to help with living costs and are normally paid to the student.

Student loans are different from many conventional personal loans because repayments are generally linked to your income and repayment plan rather than simply being a fixed monthly payment from the moment you borrow.

The rules can also differ depending on where you normally live. Scotland, Wales and Northern Ireland have their own student-finance arrangements, so you should check the rules applicable to your home nation.

Your course, previous study, age, nationality, residency status and other circumstances can affect the support available to you.

Types of Student Finance

The two main types of undergraduate support

For eligible students in England, student finance can include support for tuition fees and support for living costs. They serve different purposes.

Tuition Fee Loan

A Tuition Fee Loan can help cover eligible course tuition fees. The money is generally paid directly to your university or college rather than being transferred to your personal bank account.

Helps cover eligible tuition fees Normally paid directly to the provider Repayment follows your student-loan plan

Maintenance Loan

A Maintenance Loan is designed to help eligible students with living costs such as accommodation, food, transport and other day-to-day expenses while studying.

Designed for living costs Usually paid into your bank account Amount can depend on circumstances

Student planning university finance and budgeting on a laptop

STUDENT FINANCE PLANNING Know what your funding is designed to cover

Before You Apply

Student finance is about more than tuition fees.

Your overall student budget can include accommodation, food, transport, course materials, technology, social spending and unexpected costs.

01 Separate tuition from living costs. A Tuition Fee Loan and Maintenance Loan serve different purposes.

02 Build a realistic monthly budget. Do not assume your Maintenance Loan will automatically cover every expense.

03 Check your eligibility early. Your circumstances can affect the funding available to you.

04 Understand your repayment plan. The plan you are on affects when and how much you repay.

Repayment Plans

Your repayment plan matters

Student loan repayment rules are not identical for every borrower. Your plan generally depends on when you started your course and the type of student finance you received.

PLAN 1

Plan 1

Earlier undergraduate borrowers

Used by certain borrowers who started eligible courses before later repayment-plan changes. The repayment rules differ from newer plans.

PLAN 2

Plan 2

Certain older English & Welsh borrowers

Applies to certain borrowers who started eligible courses under the Plan 2 system. Your exact repayment position depends on your circumstances.

PLAN 4

Plan 4

Scottish student loans

Plan 4 is associated with eligible Scottish student-loan borrowers. Scotland has its own student-finance system and rules.

PLAN 5

Plan 5

Newer English undergraduate borrowers

For Student Finance England, eligible undergraduate students starting courses on or after 1 August 2023 are generally placed on Plan 5.

Important: you do not normally choose your repayment plan. The plan is determined by the rules applicable to your course and circumstances. If you have more than one student loan, you may have more than one repayment plan.

How Repayment Works

From borrowing to repayment

Understanding the sequence can make student finance feel much less complicated.

The key difference is that repayment normally becomes relevant once you have left or finished your course and your earnings are above the applicable threshold.

You apply for finance

Eligible students apply for the student finance available to them for their course and circumstances.

You study

Tuition Fee Loans and Maintenance Loans can support different parts of the cost of studying.

You finish or leave

Repayment does not normally begin simply because you borrowed money. Your repayment rules determine when deductions can start.

Your income becomes relevant

Once your earnings are above the threshold applicable to your repayment plan, repayments can become due.

Repayments adjust with circumstances

The amount you repay can change as your income changes. The rules depend on your repayment plan.

Income-Based Repayment

You do not usually repay student finance like a normal loan.

For many borrowers, the amount repaid is linked to income rather than simply being a fixed percentage of the outstanding balance every month.

01 Your repayment plan matters. Different plans have different thresholds and repayment rates.

02 Your earnings matter. If your income falls, your required repayment can also change.

03 Balance is not the only number to watch. The repayment system is based on the rules of your plan and your income.

04 Interest can apply. Student loans can accrue interest under the applicable rules.

KEY IDEA

Your salary can matter more than your loan balance when calculating repayments.

That is why understanding your repayment plan is often more useful than simply looking at the amount you borrowed.

Eligibility

What can affect your student finance eligibility?

Eligibility is not based on one factor alone. The rules can depend on your course, circumstances and where you normally live.

Course

The type and level of course, institution and study arrangement can affect which funding is available.

Residency

Nationality and residency history can affect eligibility and whether you receive full support or tuition-only funding.

Previous Study

Previous higher education study can affect the amount and type of support available for a new course.

Age

Age requirements can apply to different forms of student finance, depending on the type of support.

Household Income

Household income can be relevant when determining certain forms of support, particularly living-cost finance.

Personal Circumstances

Disability, children, dependants or other circumstances may open access to additional support.

Student Budget

Build a budget before relying on your Maintenance Loan.

Student finance may help with living costs, but your actual spending can vary significantly depending on where you live and your lifestyle.

01 Accommodation — Rent and household costs can be one of your largest expenses.

02 Food — Include groceries, meals and other everyday spending.

03 Transport — Consider travel between home, university, work and placements.

04 Study costs — Include books, equipment, software and other course-related expenses.

05 Emergency buffer — Keep some room for unexpected expenses whenever possible.

Student planning maintenance loan and living costs

Plan the money around your life.

Rent, food, transport, study costs and unexpected expenses all belong in your student budget.

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Frequently Asked Questions

Student Loans FAQs

Common questions about student finance, tuition fees, maintenance loans and repayments.

A student loan is borrowing designed to help eligible students meet the costs associated with higher education. Depending on eligibility, this can include Tuition Fee Loans and Maintenance Loans.

A Tuition Fee Loan can help eligible students cover their course tuition fees. For students in England, the loan is generally paid directly to the university or college.

A Maintenance Loan is designed to help eligible students meet living costs while studying. The amount available can depend on factors such as household income and where you live while studying.

Repayment normally depends on your repayment plan and your income after you have finished or left your course. You do not generally make repayments simply because you have borrowed money.

Your repayment plan depends on factors such as when you started your course and the type of student finance you received. You normally cannot simply choose the plan.

Yes. Student loans can accrue interest under the rules applicable to your repayment plan. The interest system is different from a conventional personal loan.

Because repayments are generally linked to income, a reduction in earnings can affect how much you are required to repay.

No. Student finance is devolved. England, Scotland, Wales and Northern Ireland have different systems, eligibility rules and repayment arrangements.

Understand your student loan. Plan your money with confidence.

Student finance can feel complicated. Start by understanding what you can borrow, how repayment works and how it fits into your wider financial plan.

Explore Student Finance → Read FAQs