Understanding student finance in England

Student finance is one of the biggest worries for students thinking about university. It often feels confusing, intimidating, and full of unknowns. The reality is that once you understand the basics, the system is far more straightforward than many people expect.

Student finance can (and does) change over time, so it’s important to get clear, up-to-date advice. The information below applies to students starting university in England from September 2026 onwards. Different systems apply in Wales, Scotland, and Northern Ireland.

This article offers three essential facts every student, parent, and supporter should know about student finance in England.

You don’t start repaying your student loan until you earn more than £25,000 a year:

• Repayments begin from the April after you graduate
• You repay 9% of anything you earn above £25,000
• If you earn less than the threshold, you repay nothing.

For example, if you earn £30,000, you repay 9% of £5,000. This is around £37.50 each month. It may be lower if the repayment threshold rises in line with inflation in the years ahead.

Top tip - student loan repayments are based on what you earn, not what you owe. Earn less, pay less. Earn below the threshold, pay nothing.

You may repay your student loan for up to 40 years after leaving university. Any remaining balance after that time is written off.

Many graduates will never repay the full amount. For some people, student finance will work more like a graduate contribution than a traditional loan.

Student finance usually comes in two parts:

• Tuition fee loan – this covers course fees, which are up to £9,790 a year for students starting in September 2026. This is paid directly to the university.

• Maintenance loan – this is paid directly to you to help with living costs such as accommodation, food, and travel. The amount of maintenance loan you receive depends mainly on household income. Higher household income usually means a smaller maintenance loan, but every eligible student receives some support.

Top tip - use the Student Finance Calculator to estimate what you might receive. Parents and supporters often find this helpful too.

Some students may be eligible for additional financial support, including:

• Disabled Students’ Allowance
• Extra funding for specific subjects
• Support linked to personal circumstances, such as being a young carer.

I haven’t included the Lifelong Learning Entitlement (LLE) in this article. The LLE is intended to reform the post-18 student finance system into a single funding model. The LLE is expected to apply to courses starting on or after 1 January 2027, with applications opening from September 2026. This doesn’t affect students applying to university now, so the information here focuses on the student finance currently available.

Student finance policies change over time. The information in this guide is correct to the best of our knowledge at the time of writing but should be used as general guidance only. Students are encouraged to check official sources for the most up-to-date information. Always ensure you explore official guidance from the Student Loans Company and seek advice from trusted experts such as Martin Lewis.