Student Loan Guide
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Paying for uni can feel like a big step, but that’s where student loans come in. From tuition fees to maintenance loans, this guide breaks down how student finances work, so you can start your degree feeling confident about your money.
How Does Student Finance Work?
Student finance is split into two main parts: one that covers your tuition fees, and another that supports you with your living costs (and yes, that includes your social life, too!). Think of it as one pot for your course, and another for your day-to-day life.
Most undergraduate and postgraduate courses qualify, but how much you get depends on your course, your income, and where you live.
Am I Eligible For Student Finance?
Not sure if you qualify? Don’t worry, most students in the UK are eligible for some form of financial support. Here’s what can affect how much you get:
- Age
- Education history
- Disabilities
- Family circumstances
- Full-time vs. part-time course
- Parents’ income level
- Nationality/residency status
- Type of course or degree
When Do I Apply for Student Finance?
The earlier the better! You can apply for student finance up to nine months after your course starts, but the sooner you do it the better, when it comes to receiving your student loan payments.
You could receive less funding if you apply too close to the deadline or after your course starts, because it can take time to verify your family’s household income. The government might only send out the minimum amount upfront while verification is pending, even if you’re eligible for more, so don’t wait until the last minute.
Tuition Fee Loan Explained
This one’s nice and simple. Your Tuition Fee Loan is paid straight to your university or college, not to you, so you don’t need to set a reminder in your calendar for when this is due!
It’s spread across the year in three instalments, and no money is released until your enrolment has been confirmed by your provider. The payment pattern is 25% in the first term, 25% in the second, and the remaining 50% later in the year.
Maintenance Loan Explained
Your student maintenance loan helps you with living costs during your studies. Unlike tuition fee loans, maintenance loans go straight into your bank account at the start of each term, ready to fund your rent, food, and everything in between. You can use it however you like, but budgeting it early will help you stretch every last pound!
Maintenance Loan Minimum And Maximum
As of the current 2025 to 2026 academic year, here are the minimum maintenance loans and maximum maintenance loans per year that you may be eligible to receive as an undergraduate student:
| Rate of loan for students | Minimum loan | Maximum loan |
| Living at home | £3,907 | £8,877 |
| Living away from home and studying in London | £6,853 | £13,762 |
| Living away from home and studying outside London | £4,915 | £10,544 |
| Studying overseas as part of a UK course | £5,838 | £12,076 |
So don’t stress about repayments just yet. You won’t start paying anything back until you’re earning over these thresholds (which you can see in the table further below). Repayments are automatically taken out of your pay too, just like tax, meaning there’s nothing you need to remember each month!
How Much Maintenance Loan Will I Get
The amount of maintenance loan you’ll receive depends on many factors, like your living situation and location. Check with the financial assistance department at your prospective university, or use the online student finance calculator, to see how much student loan you might get.
Masters And Postgraduate Student Finance
Unfortunately, maintenance loans are only available for students receiving their first degree. This means that if you’re either a master’s or postgrad student, you won’t be eligible for this loan.
Student Loan Repayment Explained
While the debt may seem daunting, it’s not something you need to worry about. When repaying your loan, the amount you contribute depends on your own income once you begin earning after your course, rather than the amount owed. Student loans are automatically deducted from your income along with other typical taxes and deductions.
Student Loan Interest Rates Explained
Interest rates for student loans are calculated every year on 1 September and are based on the Retail Price Index (RPI), which factors in inflation and the cost of living. Currently, the RPI is 3.2%. Most student loan interest rates are the RPI plus 3%, putting this year’s student loan interest rate at 6.2% for students actively enrolled in a course.
How Student Loan Repayments Are Calculated
Student loan repayments are calculated based on where you live, your circumstances, and the type of repayment plan. Most students have the same interest rate while studying; after you finish or leave, the rate may change based on your income. Once completed, the interest may change to match your income. Here’s a breakdown of how repayments are calculated:
| Type of Circumstance | Duration | Interest Rate |
| Full-time student | From when your course starts up to 5 April after you finish or leave. | RPI plus 3% |
| Part-time student | From when your course starts up to the earlier of: 5 April after you finish or leave, or 5 April four years after you started. | RPI plus 3% |
| After programme completion with an income of £28,470 or less* | 6 April, after finishing the course and until you’ve paid off the loan in full | RPI |
| Income ranging from £28,470 to £51,245 after completion* | 6 April, after finishing the course and until you’ve paid off the loan in full | RPI plus a maximum of 3% |
| Income greater than £51,245 after completion* | 6 April, after finishing the course and until you’ve paid off the loan in full | RPI plus 3% |
*Example circumstance is for a student enrolled in a student loan repayment Plan 2. Other plan types are subject to different interest rates and durations
Student Loan Repayment Thresholds
Understanding how student loan interest rates work is only part of the equation that determines how much of your income goes to student loans per month. The second part is the income threshold, based on your plan type. You’ll pay either 6% or 9% of your income over the threshold. You’ll only repay a small percentage of what you earn over the threshold, so if your salary drops, your repayments do too. Here’s a quick rundown of income thresholds by plan:
| Plan Type | Income Threshold (per year) | Income Threshold (per month) | Income Threshold (per week) |
| Plan 1 | £26,065 | £2,172 | £501 |
| Plan 2 | £28,470 | £2,372 | £547 |
| Plan 4 | £32,745 | £2,728 | £629 |
| Plan 5 | £25,000 | £2,083 | £480 |
| Postgraduate Loan | £21,000 | £1,750 | £403 |
If you were earning £30,000 a year (about £2,500 per month) after graduating, this is how much you’d be paying back depending on your plan:
Plan 1 – £29.52 per month
Plan 2 – £11.52 per month
Plan 4 – £0 per month
Plan 5 – £37.53 per month
Postgraduate Loan – £45.00 per month
Which Repayment Plan am I on?
There are five types of student loan repayment plans currently active. Remember, each one has its own thresholds and interest rates, but plans 1, 2, 4, and 5 require you to pay 9% of the amount you’ve earned that’s over the threshold, while postgraduate plans require you to pay 6% of the difference between your earnings if they go over the threshold. You can view the details of your exact student repayment plan through your student loan repayment account.
Plan 5 England from 2023
For the Plan 5 repayment plan, you’ll need to repay your loan after you reach the payment threshold of £25,000 annually, £2,083 monthly, or £480 weekly. Currently, the interest rate for this plan is 3.2% and is capped if the comparable market rate is lower than your charged interest rate. This means that you’ll pay up to 3.2%, but if market rates drop below that, your student loan interest rate will drop, too. It’s a protection to make sure your loan stays fair and in line with general borrowing costs. If you haven’t paid off your loan after 40 years, the debt is cancelled.
Plan 2 England And Wales
If you have a student loan plan from 2012 to 2023, you’re likely on Plan 2. This plan has an interest rate of RPI plus 3% for a total of 7.3% while studying and through April after completing the course. Post-studying, it turns into a sliding-scale, variable interest rate dependent upon the amount of income you make. You may pay the base RPI interest rate or up to an extra 3% (a total of 7.3%) if your income exceeds £51,245. This loan is cancelled if you haven’t paid it off after 30 years.
Plan 1 Older Loans
For payment plans established between 1998 and 2012, the interest rate is the RPI or the bank base rate, plus 1%, depending on which is lowest, putting the interest rate at 4.3%. The thresholds are £26,065 annually, £2,172 monthly, or £501 weekly. A Plan 1 student loan write-off can occur after 25 years or when you turn 65, whichever comes first.
Plan 4 Scotland
This student loan plan is for students residing in Scotland and is written off after 25 years if you haven’t finished paying it off. The interest for Plan 4 is the lower of either the RPI or bank rate, plus 1%. Currently, that puts the interest rate at 4.3%. The annual threshold is £32,745, £2,728 per month, or £629 per week.
Postgraduate Loan Overview
The Postgraduate Loan plan states that students must pay 6% of their income that’s over the threshold. The annual threshold is £21,000, the monthly threshold is £1,750, and the weekly threshold is £403.
UK nationals who reside in England, are under the age of 60, and haven’t already earned a master’s degree or higher are eligible to borrow up to £12,858 for the 2025 to 2026 year. Refugees and their families, migrant workers, those under humanitarian protection, and anyone who has lived in the UK for 20 or more years may also be able to receive a postgraduate loan.
If you reside in Scotland, Wales, or Northern Ireland, you’ll receive a different loan:
- England’s maximum postgraduate loan: £12,858
- Northern Ireland’s maximum postgraduate loan: £6,500
- Scotland’s maximum postgraduate loan: £7,000, with an additional £6,900 living cost loan for those enrolled full-time in a Scottish university
- Wales’ maximum postgraduate loan: £19,255
How Do I Check My Student Loan Balance?
To check your student loan balance, log in to your student loan repayment account.
Student Loans Company Contacts
Need to get in touch with Student Finance? Here’s how to reach the right people depending on where you live in the UK.
Student Finance England Contact
Number:
0300 100 0607
Text:
Text relay (if you cannot hear or speak on the phone): 18001 then 0300 100 0607
Address:
Student Finance England
PO Box 210
Darlington DL1 9HJ
Social Media
Twitter: @SF_England
Facebook: @SFEngland
Online Portal:
Student Finance England portal
Student Finance Wales Contact
Telephone:
0300 200 4050
Address:
Student Finance Wales
PO Box 211
Llandudno Junction
LL30 9FU
Online Portal:
Student Finance Wales login portal
Student Finance Northern Ireland Contact
Telephone:
033 100 0077
Address:
To find your local office, email address, and telephone number, use Student Finance NI’s search feature.
Online Portal:
Student Finance Northern Ireland Portal
Student Finance Scotland Contact
Telephone:
0300 555 0505
Online Portal:
Student Finance Scotland Portal
Student Loans Company Address
Student Loans Company
10 Clyde Place
Glasgow
G5 8DF
Refunds, Overpayments, and Write-Offs
Sometimes, mistakes happen. Maybe you’ve overpaid or even left your course early. Here’s how to sort it if your student finance balance needs a refund or write-off to get your account back to where it should be.
Student Loan Refund
In some cases, you can receive a refund for your student loan. For example, if you paid more than your balance or if your annual income fell below the threshold. Keep in mind that if you made an extra payment, you’re ineligible for a refund. But remember, tell your employer to refrain from taking student loan repayments out of your salary if you’ve overpaid. This may take four weeks to kick in.
Student Loan Overpayment
Student finances must be made at the beginning of your programme’s terms. Although sometimes, reassessments and reductions occur, which can influence how much you owe. If these reassessments show you received too much of a loan for your programme, you need to pay the amount back. This can happen for several reasons, like leaving the course early. Loan overpayments have to be repaid ahead of and separately from your student loan.
When Student Loans Can Be Written Off
When exactly your student loans can be written off depends on the type of plan you have. Current Plan 5 loans have a 40-year write-off, while other plans range from 25 to 30 years.
Private Student Loans
Government loans usually cover most students’ needs, but if you need extra help, private loans are another option. Just be aware that these often have higher interest rates and stricter repayment terms. Before you go down that route, it’s worth exploring scholarships, bursaries, or part-time work first.
FAQs
What Student Loan Plan am I on?
If you’re unsure what student loan plan you’re on, your student loan repayment login should have all of the information you need. Just log in to your online portal to find out more information, or call your local student finance office if you have any further concerns.
How Much is a Student Loan Repayment?
Student loans vary by location but typically range from £6,500 to £19,255.
Is Maintenance Loan Haram?
There’s no straightforward answer to this. While some claim that it’s not permitted because you accrue interest on the debt, others may argue that, because it only increases by the rate of the RPI inflation, it is not Haram.
The UK government took into consideration the concerns that some Muslim students and peers had about the kinds of financial support available to students in the latest student loan structure. As of 2023, student loans only increase by the rate of RPI inflation with no added interest. With this change, the UK Fatwa Council suggests that student loans are permissible in relation to Sharia law.
Why There Is No Maintenance Loan for Master’s Degrees
Unlike undergraduate students, master’s students have combined living costs and tuition fees. This means you can use the loan as you see fit, designating some of the funds to living costs and other funds to tuition fees.
Book Student Accommodation Near Your University
Ready to start your uni journey? At Here! Students, we offer modern, comfy accommodation close to your university. Whether you’re an undergraduate student looking to make the most out of your maintenance loan or a postgraduate student on a budget, we have residences that seamlessly immerse you in student culture and community. Book your stay with Here! Students today to make the most out of your student loan.