Student loans and finance 2025

When it comes to funding your degree in 2025/26, you'll find plenty of student finance options available, including student loans to help cover your tuition fees and support towards your living costs

Tuition fees

Universities charge tuition fees to cover the costs of running their undergraduate courses. They can also account for registration, supervision, exams and graduation expenses.

Tuition fees are set at different levels depending on where you live, so universities will first need to carry out an assessment to determine your status.

In England, universities can charge up to £9,535 per year for 2025/26 entry - the cap has increased by 3.1% (in line with inflation), after remaining at £9,250 for the previous seven academic years.

The Teaching Excellence Framework (TEF) means that only institutions that perform well in a new teaching quality assessment can increase their fees. Read more about this at comparing UK universities.

Those institutions charging the maximum rate will also need to have an access and participation plan (APP) from the Office for Students (OfS). This is aimed at improving the equality of opportunity for students from disadvantaged backgrounds.

Read more about the tuition fee changes announced in November 2024 at MoneySavingExpert - Martin Lewis explains what it means for you.

Scottish universities don't charge tuition fees to students from Scotland, as you can apply to have the home fees of £1,820 (2024/25) paid for you in full by the Student Awards Agency for Scotland (SAAS). But students from England, Wales and Northern Ireland must pay tuition fees.

If you study in Wales, you'll be charged up to £9,250 per year (2024/25). This applies to all students from Wales, England, Scotland and Northern Ireland.

In 2024/25, universities in Northern Ireland will charge a maximum of £4,750 per year to Northern Irish students, and up to £9,250 to English, Scottish and Welsh students.

In all parts of the UK, fees for EU and other international students are set on a variable scale and are usually higher. University websites display the most up-to-date fee information.

You'll need to fund the cost of study either through student finance, sponsorship or self-financing.

Student loans

If you're planning on studying for one of the following undergraduate qualifications, support is available to help with the costs of tuition:

• undergraduate degree (BA, BSc, etc.)
• foundation degree
• Certificate of Higher Education (CertHE)
• Diploma of Higher Education (DipHE)
• Higher National Certificate (HNC)
• Higher National Diploma (HND)
• Initial Teacher Training (ITT) course.

For Masters courses, see funding postgraduate study.

While eligibility is also determined by factors such as your age, nationality or residential status, those looking to study their first degree on a full-time basis should be able to apply for a repayable student loan provided by the government.

Part-time students studying at least 25% of the equivalent full-time course across an academic year may also be entitled to support.

Student loans are split into two distinct parts: tuition fee loans and maintenance loans.

Tuition fee loans of up to £9,535 a year cover your course fees. You don't receive this money - it's paid directly to the university running your course. Part time students may be able to get a tuition fee loan of up to £7,145.

For those studying for an accelerated degree (a two-year course instead of the traditional three), you could get up to £11,440.

It’s important to be aware that while student loans and bank loans are both methods of borrowing money, student loans are specifically designed to cover tuition fees and offer more flexible repayment options than bank loans.

Student loans typically have lower interest rates and repayment (or deferment) is based on your income. This means you may pay back a percentage of your income above a certain level, or you can postpone payments for a specific time - see your repayment options below.

You also need to be aware that your student loan will not directly affect your credit score, as student loans aren't recorded on your credit report. This means they don't help or hinder your credit rating.

Despite this, your student loan can indirectly influence your ability to borrow money in the future. When applying for a mortgage or other large loans, lenders may consider your overall financial situation, including your student loan repayments. This may affect how much you can borrow.

Maintenance loans

Support to help with living costs is available in the form of a means-tested maintenance loan. The loan is paid directly into your own bank account at the start of term. To help you estimate how much you're likely to receive if you're from England (or the EU and have settled status), visit GOV.UK - Student finance calculator.

For the 2025/26 academic year, you'll receive up to:

• £8,877 if you're living at home
• £10,544 if you're living away from home, outside of London
• £13,762 if you're living away from home, in London
• £12,076 if your UK course incorporates a year spent studying abroad.

The level of maintenance loan you're entitled to is related to your household income and where you plan to study. The assessment takes into account your own income, whether you're under 25, live with at least one of your parents and your parents' income. If you've had no contact with your parents for over a year, there's the possibility of applying as an estranged student.

There's no upper age limit on student loans, but in most cases, you cannot apply if you've studied at undergraduate level before. For full details on who qualifies for student finance, see Student Finance - Eligibility.

The government has announced that EU students, and those from Iceland, Liechtenstein, Norway or Switzerland, may continue to receive a tuition fee loan as well as help with living costs for the duration of their course.

Help with living costs is also available for those studying in Scotland, Northern Ireland and Wales in 2024/25.

The former has introduced a special support loan, which takes the total undergraduate funding package to £11,400 (for those with a household income of less than £21,000).

In Northern Ireland, there's a maintenance loan worth up to £9,492, a non-repayable maintenance grant of up to £3,475 (for those whose household income is less than £41,065) and a special support grant of up to £3,475 (for those eligible for the maintenance grant as well as those who qualify for certain benefits).

For students in Wales, the government offers a combination of loans and grants of up to £15,170. How much you can get of each will depend on your household income and where you plan to live and study.

You can read more about the maintenance loans and grants available in these home nations by visiting:

• SAAS - Special Support Loan
• Student Finance NI - Tuition fee and living cost students
• Student Finance Wales - Help with living costs

How to apply for student finance

Applications for full-time undergraduate courses in England usually open from March. As it can take up to six weeks to process a student loan application, you should aim to apply for your loan by 31 May if your course starts between 1 August and 31 December. You don't need to have a confirmed offer of a place on a course before applying.

The final deadline for student finance is nine months after the start of the academic year for your course.

Students from England can register and apply online through Student Finance England. From here you can track your application, check your student finance payment dates and make any amendments to your details.

EU applicants with settled status can also apply online for tuition fee support and help with their living costs. However, if you're applying for tuition fee support only, you'll need to download the forms and apply by post.

If you live in Scotland, Wales or Northern Ireland you should apply for student finance through the following bodies:

• SAAS - Undergraduate funding
• Student Finance Wales - Undergraduate finance
• Student Finance NI - Undergraduate students

Repaying student loans

The interest rate is currently set at 7.8% for those on Plan 5. However, you don't have to repay these loans until the April after you graduate or leave your course and are earning £25,000 or more a year (£2,083 a month) before tax and other deductions. You'll then make repayments at a rate of 9% of your income over the threshold.

There's no penalty should you wish to pay off some or all of your loan amount outside of this repayment threshold. However, if you have other financial goals, such as saving for a deposit on a house or retirement plans, you may wish to prioritise those first.

If you're employed, the amount will be automatically deducted from your salary at the same time as tax and National Insurance (NI). However, it's advisable to hold onto your payslips and P60 form, as you'll need to produce them if you ever request a refund.

Should you decide to move abroad after your studies, your student debt won't disappear. However, the specific details will depend on the country you're moving to and the type of student loan you have.

If you're from the UK and moving overseas, your student loan repayments will still apply. The repayment threshold changes are based on the country you live in, and you may need to make direct repayments to the Student Loans Company (SLC). You'll need to inform them of your employment details as soon as possible to ensure they make the correct repayment calculations.

For students from countries other than the UK, the rules can vary significantly. Some countries might have agreements in place with the UK or other countries regarding student loan repayments, but it's important to check your specific situation.

Get the lowdown on student loan repayment at GOV.UK - Repaying your student loan.

You can also read Martin Lewis' 6 need-to-knows about 'Plan 5' English student finance.

How to cancel student finance

If your plans change before the start of your course, you can amend or cancel your funding application. You'll have to contact Student Finance England or the relevant administering body to process this.

Once the first term of university has started, as a full-time student who normally resides in England, Wales or Northern Ireland, you'll still be liable for 25% of your tuition fee loan even if you decide to withdraw, transfer or suspend your studies at a later date. This percentage increases to 50% after the first day of the second term and 100% if you start the third term.

If you normally live in Scotland, where tuition fees are paid directly to the university in one instalment, and you plan to withdraw from your course before the set date, no tuition fee loan will be paid to you. After this date, the loan will be transferred to your new course and university.

With maintenance loans, you'll become liable for each instalment as soon as it's paid (at the start of term). This includes any interest accrued, which will be added when you're due to start your repayments.

You should speak to the relevant awarding body, such as Student Finance England, before making your decision. This is because leaving your course early may affect your chances of receiving financial support in future. See our advice on changing or leaving your course.

Hardship funds

While the Access to Learning Fund has now been replaced, additional financial support is available for:

• students on a low income
• students with children, especially single parents
• students previously in care
• disabled students
• mature students with existing financial commitments.

To check your eligibility for extra help, visit GOV.UK - Extra money to pay for university.

You may be able to get help from your university, as well as charitable trusts. Non-repayable bursaries, scholarships and awards are available for students who'd otherwise be unable to afford to study at this level. Contact your university to find out what's on offer, whether you're eligible and how to apply.

Meanwhile, if you find yourself in financial difficulty after your course has started, your university may be able to provide money from its hardship funds to assist you. Apply through your university's support services.

Student bank accounts

Most high street banks have accounts aimed specifically at students and it's a good idea to open one of these before starting your course.

To be accepted for a student bank account, you'll need to have your university place confirmed - but once you have the evidence to prove this, you can make use of the benefits before starting your course.

When you're deciding which bank to choose, don't just pick the one with the best free gift. While incentives such as student rail cards and other discounts are always welcome, the size of the 0% overdraft facility will prove to be the greatest help when money is tight.

Browse the websites of the major banks to find the best option, get independent advice from consumer website MoneySavingExpert.com or use comparison websites such as Compare the Market to help you reach a decision.

Find out more

• Discover how to save money as a student.
• Follow the process of getting into university.
• Get the full lowdown on university life.