Student Finance Guide 2024
Guide to Tuition Fee Loans and Student Finance in the UK
Are you looking for undergraduate funding for your university tuition fees and living costs? You will need to apply for student finance. While it may feel daunting, applying for student finance is easy, just read on to find out everything you need to know!
What is student finance?
In the UK, loans for students or ‘student finance’ is available to cover tuition fees and living expenses. There are two types of loan: tuition fee loans and maintenance loans.
The organisation you receive student finance from is different depending on which country you live in. Click below to find the funding body which will provide your loans for studying in the UK:
★ Student Finance in Wales (Cyllid Myfyrwyr Cymru)
★ Student Finance in Northern Ireland
★ Student Finance in Scotland (SAAS)
★ Student Finance in Isle of Man
When you apply for student finance, make sure you sign up through the organisation based in the country you lived in before attending university. For example, if you are going to be studying in Edinburgh, but you live in England, you should apply through Student Finance England.
What is a maintenance loan?
A maintenance loan, also known as student finance, is a loan funded by the government which helps cover living expenses for students. The amount you will receive will depend on your household income. University costs to consider using a maintenance loan for include rent, food, bills and other lifestyle purchases.
When should you apply for student finance?
For courses starting in 2024/2025, the deadline for loan applications is the 31st May 2025. This is because you can still apply for funding up to 9 months after your course has begun. However, if you would like to receive a maintenance loan, you will need to ensure this application is complete at least 6 weeks before your course begins. This ensures you will receive a loan for living expenses as soon as the academic year has started.
When do you start repaying your loans?
You will repay your student loan with a payment plan: Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate Loans. The repayment plans also vary between different student finance providers. For example, all students using Student Finance Northern Ireland use Plan 1. Click here to view all repayment plan types.
You only start paying the tuition fee and maintenance loan back once your pre-tax income reaches the threshold for your repayment plan. The amount you pay will be the percentage of income over the repayment threshold amount.
This percentage is 9% of your income over the threshold for Plan 1, 2, 4 or 5, or 6% of your income over the threshold for a Postgraduate Loan plan.
For example, if you earn £30,000 after graduation, and you are on Plan 5, you would be earning £2,500 a month pre-tax. The income threshold for Plan 5 is £2,083. The monthly income (£2,500) minus the Plan 5 monthly threshold (£2,083) = £417.
Therefore, in this example, you will pay 9% of £417, which is £37.53 a month. For your payment, the £37.53 a month is deducted before you receive your salary.
Do you get student finance on a year abroad?
The amount of funding or travel grants you can receive during a study abroad programme will vary depending on which UK student finance organisation you apply through. Grants will be calculated using household income and the type of study abroad programme you choose to apply for. This may cover costs such as return travel, visas and insurance.
Click to find out about study abroad loans in: Scotland, Northern Ireland, Wales, England.
What if I don’t want a tuition fee loan?
It is not compulsory to take a tuition fee loan. Some students may be fortunate enough to have money for tuition fees in savings, or to pay the fees upfront.
Is student finance haram?
Some religions prohibit engagement with interest, which is applicable to student loans. To ensure this doesn’t prevent students from accessing university, the UK government is in the process of setting up an Alternative Student Finance scheme. This may be available from 2024/2025.
What is a household income assessment?
A household income assessment is a form filled in by members of a household to provide evidence for student finance applications. Information required includes national insurance number, marital status, private pension details, voluntary contributions and number of dependent children.
What hardship funds are available for students?
If you are experiencing financial hardship, you could receive extra funding from your university or college to support your needs. The amount you receive will be decided by your university, and will vary depending on the circumstances.
You could be eligible for hardship funds if you are:
★ A student with children, especially a single parent
★ A mature student with existing financial commitments
★ From a low-income family
★ Disabled
★ A student that was previously in care (a ‘care leaver’)
★ Homeless or living in a foyer
What is a dependants’ grant?
If you are a full-time undergraduate student and an adult depends on you financially, you can apply for an Adult Dependants’ Grant. This is a grant that does not have to be paid back, and is additional funding to your other student finance loans. The grant is usually around £3,000 for the academic year.
Am I eligible to apply for a disabled students’ allowance?
You are eligible if you have a disability which affects your ability to study such as a: mental health condition, learning disability, physical disability, sensory disability or long-term health condition.
To apply for a disabled students’ allowance, you need to provide evidence of your disability. Depending on your individual needs, you will receive financial support for your studies.
What are NHS Student bursaries?
If you are studying to become a doctor or a dentist, you could apply for an NHS bursary to financially support your degree. This could be a grant, tuition fee contribution or bursary based on your household income. Full-time students can be eligible for up to £3,191.
You will need an NHS Bursary account to start your application.
Is postgraduate funding available in the UK?
You can apply for a master’s degree loan to help with costs. This is up to £12,167 - you can use this to pay for tuition fees, rent or living costs during your studies.
A maintenance loan is not available for postgraduate degrees, instead students must use the ‘Master’s Loan’ to support all costs. This means many students choose to work part-time alongside their degree, or use savings to pay for their fees.
Can you get PhD loans?
Loans are available for students doing a PhD or Doctorate. This can be up to £28,673 and is to be used for fees and living costs. The loan is divided across the time it takes to complete your course.
Research councils in the UK may also provide funding to students on research doctorates. Contact your university to find out which subject matters and funded research projects are available to apply for.
Some large employers offer their employees the opportunity to study on the basis that you will bring your knowledge back into the organisation after completing your degree. Enquire with your employer to find out what opportunities there are.
What are student bank accounts?
Student bank accounts offer overdrafts, flexibility and sign-up freebies which are only available during your time at university. Different banks offer a variety of options, so it is important you explore all options to find the best bank account for your needs.
Discover the Best Student Bank Accounts according to reviews
