What financial help is available to students?
As well as student loans to cover tuition fees and living costs, there might be other ways of accessing the financial support you need while studying in higher education. Our guide looks at your options.
Key takeaways
The government offers upfront tuition fee loans up to £9,250 annually, with repayment starting once earnings exceed £25,000 for new students (It differs if you started your course earlier)
Maintenance loans to support your living costs as a student can be over £10,000 a year, and more if you based in London
You can receive additional support from grants, bursaries, and other financial aids that don't require repayment
Understanding the types of financial help available for students can make a world of difference to your learning experience
This guide will explore the various financial support options that students can tap into, helping to ensure that money concerns don't overshadow the university experience.
How do student loans work?
For many students in the UK, student loans are the cornerstone of their financial plan for higher education. The government provides these loans upfront, allowing students to focus on their studies rather than their bank balance.
Student loans are typically split into two areas, tuition fee loans and maintenance loans:
Types of student loans
Tuition fee loan
This loan covers the full cost of education in England, Wales, and Northern Ireland, and will rise by £285 to £9,535 per year for the 2025-26 academic year. Scottish students studying in Scotland have their tuition fees fully covered by the government.
Maintenance loan
Designed to help with living expenses, the maintenance loan is means-tested and varies depending on where you live and study. For instance, if you're living away from home and studying in London, you could receive a bigger loan.
The table gives maximum and minimum rates of loans for living costs, in the 2025-2026 academic year. It’s for full-time undergraduate students who are not eligible for benefits. Students in receipt of benefits could receive a higher amount.
Loan for students who… | Maximum loan | Minimum loan |
|---|---|---|
Live at home | £8,877 | £3,907 |
Live away from home and study in London | £13,762 | £6,853 |
Live away from home and studying outside London | £10,544 | £4,915 |
Study overseas as part of a UK course | £12,076 | £5,838 |
How does student loan repayment work?
Repayment is income-contingent and begins once you start earning over a certain amount. This differs slightly depending on when you started your course.
Name of loan | It covers student loans taken out… | Repayments start when annual earnings top… |
|---|---|---|
Plan 1 | Before September 2012 | £24,990 |
Plan 2 | September 2012 to July 2023 | £27,295 |
Plan 4 | By Scottish students in Scotland | £31,395 |
Plan 5 | From August 2023 | £25,000* |
*Repayment of these loans is not due to start until April 2026
The repayment rate is 9% of your income above the threshold. For example, if you were on Plan 2 and earn £30,000 a year, you would repay 9% of the amount over £27,295, which is £270 per year (roughly £22.50 per month).
Interest rates on student loans also vary depending on your income. While studying, the interest rate is based on the Retail Price Index (RPI) plus 3%. After leaving your course, the interest rate depends on your income, ranging from RPI for those earning less than £27,295, up to RPI plus 3% for those earning over £49,130.
Repayments are typically collected through the tax system (Pay As You Earn - PAYE), if you're employed. This means your employer deducts repayments directly from your salary. If you're self-employed, you make repayments as part of your annual tax return.
If you started your course in or after September 2012, any remaining loan balance is written off 30 years after the April you were first due to repay.
What other financial support can students get?
Beyond loans, grants, bursaries, and other financial aids that don't require repayment might be available. These are often based on personal circumstances, such as background, financial status, and even A Level results or chosen course:
Financial support for students
Special support grant
The amount varies depending on individual circumstances, but it can cover additional study-related costs beyond standard support. For example, it may help with childcare costs or specific equipment needed due to a disability.
Disabled students' allowances
Provides extra financial help for students with disabilities or specific learning difficulties. The amount can vary depending on individual needs but may cover costs such as specialist equipment, non-medical helpers, or additional travel expenses related to the disability.
Care leavers' bursary
Aims to offer additional financial assistance to help care-experienced students access and succeed in higher education. Specific amounts can range from a few hundred to several thousand pounds per academic year.
Parents' learning allowance and childcare grant
For those with children, additional support is available that doesn't affect other benefits or tax credits. This includes the parents' learning allowance and the childcare grant for children under 15, or under 17 with special educational needs.
Travel grants and university awards
Students studying abroad or those with specific requirements like clinical placements can apply for travel grants. Additionally, universities often have their own funding schemes to support students.
Academic scholarships
Depending on the institution and the specific scholarship, they may cover partial or full tuition fees, living expenses, or a combination of both.
Student hardship fund
Typically used to provide emergency financial assistance to students facing unexpected hardship during their studies. A discretionary fund, the amount provided can vary based on the severity of the financial need and the availability of funds at the institution.
Student bank accounts and credit cards
If you’re about to start higher education, a student bank account that offers an interest-free overdraft and other perks such as cashback or a free railcard could help you manage your finances.
A student credit card might also be useful, especially if you can take advantage of any loyalty points on offer. But this needs to be used responsibly, as interest rates can be high.
Further grants and bursaries
The landscape of grants and bursaries is vast and varied. From local charities to organisations, there are numerous avenues to explore based on individual circumstances. Charities that support students financially include Buttle UK, Turn2us, and The Prince's Trust.
How do I apply for a student grant?
When it comes to applying for grants, the best starting point is the government's official student finance website. Here, you'll find a comprehensive list of available grants, bursaries, and loans, along with the necessary application details.
How often will I receive my student loan?
Government financial support is typically paid in three instalments throughout the academic year. In Scotland, however, payments are made monthly. Regional bodies like the Student Awards Agency for Scotland (SAAS) and Student Finance Wales offer additional assistance tailored to their residents.
Do students have to pay council tax?
If everyone in your home is a fulltime student you do not have to pay council tax. Even if one person is not a student, you might still be eligible for a discount.
Can I get financial support as a postgraduate student?
For those considering postgraduate studies, loans are available to help with course fees and living costs. A Postgraduate Doctoral Loan, for example, can be applied for through Student Finance.
How can I be sure I’m getting the most financial student support available?
To ensure you're receiving the maximum financial support, use the government’s student finance calculator.
You can use the calculator to estimate how much student loan you could get as well as any extra funding, for example, if you’re disabled or have children.
Personal Finance Expert
Our expert says...
“If you’re a student concerned about how you might fund your studies, don’t panic, help is available. Start by learning about tuition loans and maintenance loans that will help cover your learning and living costs, then check out what grants might be available. Because student financial support depends so much on your individual circumstances, doing your research is key.”
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Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
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Collette Shackleton is a highly skilled Content Writer who has over nine years’ experience creating helpful and engaging personal finance content for consumers. Collette shares her experience as a...
