Finanziamento
Student financing allows all students to achieve their academic goals.
How does student financing work in the United Kingdom?
How student loans work
What is student finance and how does it work?
Student loans do not work like other loans. They are given by the government and offer you more protection than loans that you access to buy a house or a car.
For example:
- You do not have to repay anything until you leave your course and your income is over £25,000, known as the repayment threshold
- Your monthly repayments are based on what you earn and not on what you owe, so you pay your loan back gradually over the years
Who gives out student loans?
Student loans in England are managed by the Student Loans Company (SLC). One part of SLC, called Student Finance England, manages applications and distributes the money while you study. Once you finish studying, your total loan balance is then managed by SLC, which also handles repayments.
What exactly are student loans?
The government provides loans to cover tuition fees and living expenses for students. A student loan allows for repayment whenever you graduate or leave your course and earn more than the repayment threshold. This is an advantage. Your monthly repayment amount is determined by your income, not your debt.
Students starting in August 2025 will begin repaying their loans whenever they earn more than £25,000 per year. So, if you make less than that, you won’t have to repay anything. Interest will be applied to your loan from the moment you borrow.
How long do repayments continue for? Are loans ever written off?
Anything you owe will be automatically cancelled after 40 years. The amount you pay back each month depends on what you earn, now what you owe.
What is interest and how does it affect me?
Your total loan is made up of everything you borrowed while studying + interest.
Interest is added from when the first amount is paid to you or your university until the loan is paid off or cancelled. The Retail Price Index (RPI) measures inflation, which is connected to interest rates. The RPI from the previous March is used to establish the starting point for each academic year. Your loan will not have a higher interest rate than commercial loans like credit cards or personal loans for car purchases. Remember that interest only affects how long it takes to repay your loan, not the amount you repay each week, month or year, which is determined only by your income.
Does student finance affect universal credit?
Yes, your student income can influence how much universal credit you get.
Who can apply and who is eligible?
What are the criteria for eligibility?
Most people are entitled to a student loan if they meet the criteria. The main four are:
1.Your university/college or course
First of all, your university or college (or another type of institution) must be ‘recognised’ or ‘listed’. This is a lot less complicated than it sounds, as it covers most unis and colleges.
What is more, the course you are enrolling in must fall under the list of qualifying courses supplied by the government. Again, most undergraduate courses are recognised and eligible for funding. But there are some different criteria if you will be studying part-time. Students on most courses at most universities will be eligible for student loans.
To make sure, head over to the government’s website for the full list of criteria.
2.Whether or not you have studied before
Learners are entitled to a loan that represents the length of their course plus one year BONUS in case they need to retake a module.
If you have previously started a course but had to drop out of uni, you may be eligible to receive funding again. In this scenario, however, a specific formula applies. You must calculate the length of your course plus the one-year bonus minus the number of years you have already received student finance for. For example, if you are applying for a 3-year course and have studied before for 5 months on a different course, you will only get 3 years of funding. If you are applying for a 4-year course and have studied before 2 years for a different course, you will only get 3 years of funding. Similarly, if you are resitting a year at the same institution, you may be eligible for a Maintenance Loan.
If you have already completed a course and obtained your qualification, Student Finance England will not provide funding for another course at the same or lower level. However, they will offer Tuition and Maintenance Loans for any course that is at a higher level than the one you have already completed. The exception to this rule is if you dropped out for “compelling personal reasons”. If so, you could be eligible for funding for your full course regardless of how long you previously studied. These reasons tend to be things like serious illness, rather than simply not liking the course you were on.
You can also get in touch with one of our student finance consultants. They will be able to help you calculate the remaining years for funding a new course.
3.Your age
This one should not be an issue for most of you. The only age restrictions on Maintenance Loans affect those aged 60 or over. But even then, you may get some funding if you’re studying full-time.
4.Your nationality and residency status
As a general rule, you are eligible for a both Maintenance Loan and a Tuition Fee Loan if you are a UK national (or have ‘settled status’), normally live in the UK (or the Channel Islands or the Isle of Man) and have done so for the three years prior to the start of your course.
For more information on eligibility visit http://gov.uk/student-finance/who-qualifies or get in touch with us.
Are you eligible for student finance?
If you meet these aforementioned criteria, you are most likely eligible. We can check your eligibility for free, so contact us directly.
How many years of student finance can you get?
By adding one year to the total number of years you are applying for, you may determine how many years you will receive them for. After that, subtract the amount of years you spent studying. You should count a portion of a year as a full year of study.
How can you cancel your student finance application?
This is a specific case whose variables depend on your particular circumstances. Please contact us to find out more.
How can you change the university on student finance?
This is a specific case whose variables depend on your particular circumstances. Please contact us to find out more.
Can you get student finance for a master’s degree?
Yes, you can. See our section on postgraduate loans!
Can you get student finance for a second degree?
Yes. Depending on the type of degree, years studied already and other similar criteria, you may be entitled to more student finance. Contact us to check your eligibility for free.
Available funds - what can the loans be used for?
What kinds of loans can I access?
Students can access tuition fee loans and maintenance loans.
What is a tuition fee loan?
The Tuition Fee Loan goes towards the cost of your course and it’s up to a maximum of £9,535 per year. Tuition Fee Loans are paid directly to your university or college in three instalments at the start of each term.
What is a maintenance loan?
The Maintenance Loan helps with the everyday costs of being a student like accommodation, food and transport. The amount you can apply for depends on your personal circumstances, such as your household income and where you will be living and studying.
When is student finance paid?
Tuition fee loans are paid to the institution at the start of each term. Maintenance loans are paid directly into your bank account at the start of each term.
How much student finance will you get?
The size of the Maintenance Loan you’re entitled to will depend on the following four factors:
- Where in the UK you’re from
- Each country within the UK has its own funding body for students. You’ll apply to the body in the country you normally live in when you’re not at uni.
- Whether you’ll be living at home or not
- If you study in London, you can apply for a higher amount of Maintenance Loan up to £13,762. If you study outside London, you can apply for a maximum amount of Maintenance Loan up to £10,544.In most of the UK (apart from Scotland), there’s more funding on offer for students who live away from home while at uni. There’s usually even more funding if you’ll be studying away from home and in London.
- Your household income
- Students from households with a higher income generally receive less generous funding packages from Student Finance bodies. Meanwhile, those from poorer backgrounds usually receive the most generous support. Depending on where in the UK you’re from, this could determine how big a Maintenance Loan you get and/or how big a Maintenance Grant you’re entitled to (if any).
- How long you’re studying for
- If you enrol in an accelerated degree, you may be eligible for extra funding for the additional weeks of study involved each year.
Can you get any other financial support?
There are also some grants available for certain students, such as those with a disability or dependants. Grants are amounts of money that do not need to be paid back, such as:
- Childcare Grant – full-time students only
- Parents’ Learning Allowance – full-time students only
- Adult Dependants’ Grant – full-time students only
- extra help if you’re experiencing financial hardship
For more information on what funding is available, visit GOV.UK/student-finance/apply.
How and when to apply for student finance?
How and when should I apply?
Apply online through the Student Finance England (SFE) portal, which opens in March for full-time students. Those taking part-time or short courses apply later in the year.
How exactly do you apply for student finance?
To begin the application process, you must first create a student finance account. Prepare relevant information, such as a passport, National Insurance number and bank account details, to speed up the process.
Details of household income (only if you are under 25, married or living with a partner) – which is needed if you are applying for a Maintenance Loan or any grants – can be added by your sponsor, usually your parents or partner.
What is the deadline for student finance?
When applying for a full-time course, it’s important to submit your application on time to ensure that payment is received on time. Student Finance England operates on a first-come, first-served basis, and while you can apply up to nine months into your study, it is advisable to apply sooner.
Each year, you will need to log into your account, check the information is correct and apply for that year’s loan. For more information on how and when to apply, visit GOV.UK/apply-for-student-finance. We offer full support and guidance to apply for student loans. Please get in touch.
Repayment
What is the monthly repayment?
The entire loan amount includes all borrowed funds and interest. The monthly repayment amount is determined by your income, not your outstanding balance.
How much student finance do you owe?
To begin repaying your loan, your income must exceed the repayment threshold of £25,000 per year, £2,083 per month, or £480 per week. If you do not earn the specified amount, there is no need to repay. If you do not repay your debt after 40 years, it will be automatically cancelled.
When will you start making repayments?
You will start to repay your loan from the month of April after you graduate or leave your course, assuming you earn more than the repayment threshold. For example, if you complete a three-year course that started in September 2023, you will not begin repaying your Plan 5 student loan until April 2027. If your course is one or two years or you leave your course early, you will not have to start repaying your loan until April 2026. Those studying part-time have a different arrangement. Repayments are deducted directly from your salary by your employer, at the same time as tax and National Insurance. If you are self-employed, you will pay annually through your tax return. Once you earn over the repayment threshold (£25,000 a year, £2,083 a month or £480 a week), 9% (or 9p in every £1) is deducted as your student loan repayment.
Can repayments change?
If your income increases, your repayments will also increase. However, if your income goes down, your repayments will also reduce or stop altogether if it falls below the repayment threshold.
What are some examples of repayments?
Income each year before tax — Student loan monthly repayment
- £25,000 -> £0
- £27,500 -> £18
- £31,000 -> £45
- £36,500 -> £86
- £45,000 -> £150
Suspending or leaving your studies
What happens if you suspend or leave your studies?
If you do decide to suspend or withdraw from your studies, it’s really important to contact Student Finance England by phone or social media, and let your uni or college know your decision as soon as possible. This minimises the risk of you being overpaid when it comes to your student loans.
What if you suspend your studies?
Once your uni or college lets Student Finance England know you’ve suspended your studies, they’ll reassess your student finance based on the number of days you attended your course, and will send you a new student finance entitlement letter. They’ll stop any future payments to you or your uni or college until you return to your studies. Depending on the date you suspend, and when your uni or college lets Student Finance England know, you may be overpaid.
What if you withdraw from your course?
Once your uni or college lets Student Finance England know you’ve withdrawn, they’ll reassess your student finance based on the number of days you attended your course. They’ll stop any future payments to you and your uni or college, and send you a new student finance entitlement letter. Depending on the date you withdraw, and when your uni or college lets Student Finance England know, you may be overpaid.
How will you repay your student loan in such scenarios?
You’ll be responsible for repaying any Tuition Fee Loan Student Finance England has paid to your uni or college, and your Maintenance Loan. You’ll repay these as normal, unless you were overpaid.
What if you return to university or college?
If you suspended your studies
If you suspend your studies and then return in the same academic year, your uni or college will let Student Finance England know, and they’ll reassess your student finance. If you return in a new academic year, you should reapply for student finance as normal.
If you withdrew
If you withdrew in your first year, you should be able to get full funding to study another course. If you left your course in your second year or later, you may have to cover some or all of the cost of your tuition fees yourself, if you return to study. You’ll usually still be able to get a Maintenance Loan for any self-funded years of study.
Need help with financing?
Our financing experts are here to help you understand your options and find the best solution.
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