Understand
How student loans work for tuition fees and living costs across the UK
Overview
Student loan rules vary across England, Wales, Scotland, and Northern Ireland, typically comprising a tuition fee loan paid directly to the university and a means-tested maintenance loan for living costs paid to the student's bank account. Repayments depend on the specific loan plan, earnings thresholds, and interest rates, with remaining balances eventually written off after a set number of years.
Key points
- Student loans generally consist of a tuition fee loan and a maintenance loan for living costs.
- Maximum tuition fees vary across the UK, reaching up to £9,790 a year in England and Wales.
- Maintenance loans are means-tested based on household income to cover accommodation, food, and equipment.
- Graduates only start repaying their student loans once their earnings exceed specific regional thresholds.
- Plan 2 loans in England have interest tied to the Retail Prices Index (RPI) plus up to 3%, with a capped interest rate of 6% for the 2026-27 academic year.
- Unpaid student loan balances are written off after a specific period, such as 30 or 40 years depending on the loan plan and region.