What is a student loan?
A student loan is made up of two parts:
- A tuition fee loan which the government pays directly to the university. This covers the cost of your course. All UK students are entitled to this, regardless of household income.
- A maintenance loan which is paid directly to you. This is to help with living costs like accommodation, food and travel. The amount you receive will depend on your household income and whether you live away or at home.
Does a student loan affect your credit score?
A student loan isn't like other loans. It won't affect your credit score. However, some lenders may consider your student loan repayments when deciding whether to give you a mortgage or other finance.
How can I apply for a student loan?
You should apply for your student loan as soon as you've applied to study at university. The application process varies depending on where you live in the UK.
For full details and to submit an application visit the relevant website below:
Living costs at university
It is very unlikely that your maintenance loan will cover all your costs. Most students get a part-time job to help pay for things. You may also get money from parents, savings or a scholarship or bursary.
Are your parents or carers expected to help with costs?
Parents or carers are generally expected to help with costs at university. Maintenance loans are based on your household income. That means the more your parents earn, the less you will receive in a maintenance loan. This is because the government expects your parents to contribute towards living costs.
You should discuss this with your parents before starting university. Ask how much money they're able to contribute each month. Add this to your maintenance loan to come up with a student budget. If this still isn't enough, you could consider getting a part-time job or applying for a scholarship or bursary.
What's the minimum maintenance loan?
The amount you receive from your maintenance loan is determined by your household income, as well as whether you live away or at home.
- If you live away from home, the minimum maintenance loan you can receive is £4,917 a year.
- If you live at home, the minimum maintenance loan you can receive is £3,907 a year.
Financial support
Find out how we can help you
There's lots of financial support available at the University. We have a dedicated financial support team to help with your money problems. We can help you access scholarships, bursaries and even grants. We can also refer to other agencies for further help.
When do you start paying back your student loan?
You will only start paying back your student loan once you earn over a certain threshold. This starts in the April after you have finished your course.
A small amount will automatically be deducted from your salary every month. The amount you repay is based on the salary you earn, not how much money you owe.
If you become unemployed or your salary falls below the threshold, then your repayments will automatically stop. They will restart when you earn above the threshold again.
Your debt will be written off after 30 years, regardless of how much you owe. Economists have predicted that most students will never pay back their entire student loan.
You can find out how much you'll repay on the Government website.
