UK student loans: everything you need to know

If you’re a full-time undergraduate student, you’ll be eligible for a student loan, provided you meet some basic criteria.

There are some differences in the way your loan will work depending on when you started university. The terms of loans for courses starting between 2012-2022 are different to those starting from September 2023 onwards.

We’ll make any differences clear throughout the guide.

The information provided applies to students from England only.

If you’re a full-time undergraduate student, you’ll be eligible for a student loan, provided you meet some basic criteria.

We’ll make any differences clear throughout the guide.

The information provided applies to students from England only.

How does a student loan work?

There are two parts to the student loan:

a loan for the tuition fees
a loan to help with your living costs – this is known as the maintenance part of the loan

If you take out a student loan, your tuition fees will be paid directly to your university by the Student Loans Company.

You’ll also get a student maintenance loan. You'll receive this in three parts across the academic year – usually at the beginning of each term. The money will be paid directly into your bank account.

Loan for tuition fees

Tuition fees are capped at £9,790 a year until the 2026/27 academic year. Most higher education establishments charge the maximum allowed. The majority of students have their fees paid for them by the Student Loans Company.

But you can choose to pay the fees upfront yourself if you have the money to do so and you don’t want to take out a loan.

Student maintenance loan

This part of the loan is to help you cover your living costs.

You’ll usually receive a payment at the beginning of each of the three terms. The money will be paid directly into your bank account.

Part of the maintenance loan is means tested. For almost every student under the age of 25, the amount you’ll get will be based on your parents’ income.

If you’re 25 or older, the amount you’ll get will be based on your co-habiting partner’s income (if you have one).

How much will my student loan be?

The total cost of your tuition fees and maintenance loan, with interest added on top, can sound scary. It may even be enough to put you off going to university. But, before you change your life plans, it’s important to understand that what you’ll repay won’t necessarily be the full cost.

How much you end up paying back depends entirely on your earnings after university. Those who earn a lot will repay a lot. Those who don’t benefit too much financially from going to university will pay a lot less, maybe nothing.

Rather than thinking of your student loan as a loan, you may find it helpful to think of it as a graduate tax. This tax only kicks in once your earnings reach a certain level.

What is the maximum loan you can get?

As we’ve seen your student loan comes in two parts. The first part covers your tuition fees and the second part contributes towards your living costs.

Your tuition fees should be covered, so you don’t need to worry about that. Usually, you can get a tuition fee loan for your entire course plus one extra year in case you drop out and come back later.

The amount you’ll get towards your living costs depends on:

your household income
where you’ll be living

You’ll get the maximum amount available if your annual household income (so usually your parents) is £25,000 or less.

In 2026/27, the maximum you’ll get is:

Living situation	Maximum loan
Living at home	£9,118
Living away from home (not in London)	£10,830
Living away from home (in London)	£14,135

As your household income increases above £25,000, the amount you receive gradually reduces until you reach the minimum maintenance loan amount.

This means the minimum amount you’ll get is:

Living situation	Minimum loan
Living at home	£4,013
Living away from home (not in London)	£5,048
Living away from home (in London)	£7,039

You’ll get the minimum amount if:

you’re living at home and your annual household income is £58,387 or more
You’re living away from home (not in London) and your annual household income is £62,410 or more
You're living away from London and your annual household income is £70,131 or more

What are the interest rates on a student loan?

This depends on when you started your course. Student loan interest rates are normally based on the Retail Price Index (RPI), although the government can apply temporary caps or other changes. Rates are reviewed each year and can change over time.

Usually though, the interest rate on your student loans will be as follows:

If you started from September 2012 to July 2023 (Plan 2)

During your course: your loan will gather interest at the rate of inflation - measured by the Retail Price Index (RPI) - plus 3%.

Although the normal rate is RPI + 3%, the government has temporarily capped the maximum interest rate at 6% for the 2026/27 academic year.

After your course, earning less than £29,385 a year

Your loan will usually gather interest at the rate of inflation (RPI).

The exact interest rate for the 2026/27 academic year is reviewed annually by the government.

After your course, earning £29,385–£52,885 a year

Your interest rate gradually increases from the RPI rate up to RPI plus 3%, depending on your income.

However, the temporary 6% cap still applies where relevant during the 2026/27 academic year.

After your course, earning £52,885 or more a year

Your loan will usually gather interest at the rate of inflation plus 3%.

However, the government has temporarily capped the maximum interest rate at 6% for the 2026/27 academic year.

If you started from September 2023 (Plan 5)

The interest rate on your loan is set at the rate of inflation (measured by the RPI).

The exact interest rate for the 2026/27 academic year is reviewed every year by the government and will depend on the latest RPI figure.

How do I apply for a student loan?

The quickest and easiest way to apply for a student loan is on the government website.
You have to apply for student loans for each year of your course, not just the first one.
It can take six weeks to process loan applications, so it’s a good idea to apply early. You can always change or cancel your application if your plans change.

How do you pay a student loan back?

How you pay a student loan back varies slightly depending on when your course started.

If you started from September 2012 to July 2023 (Plan 2)

Once you leave university, you’ll start repaying your student loan when you’re earning above £29,385 a year. If you never earn over the threshold, you won’t pay anything.

You’ll repay 9% of everything you earn above the threshold.

You'll become liable for repayments the April after you leave university.

Any repayments due will be taken automatically via payroll.

Your employer will take the payments before you get paid, so you can’t miss payments.

If you’re self-employed, you’ll pay it through the self assessment system.

If you started from September 2023 (Plan 5)

After leaving your course, you’ll start repaying your student loan once you start earning over £25,000. If you never earn over the threshold, you won’t pay anything.

The threshold is frozen at £25,000 until 2027. From this point, it is currently expected to increase in line with inflation.

You’ll repay 9% of everything you earn above the threshold.

You'll become liable for repayments the April after you leave university, unless you leave early.

If you leave your course early, you'll usually become liable for repayments from the April after you leave, provided your income is above the repayment threshold.

Any repayments due will be taken automatically via payroll.

Your employer will take the payments before you get paid, so you can’t miss payments.

If you’re self-employed, you’ll pay it through the self assessment system.

Could my student loan be written off?

If you started from September 2012 to July 2023 (Plan 2)

Your loan will be automatically wiped out after 30 years from the April after you were first due to repay or if you die, regardless of how much you’ve paid.

If you started from September 2023 (Plan 5)

Your loan will be automatically wiped out after 40 years from the April after you were first due to repay or if you die, regardless of how much you’ve paid.