How do student loans work and when are they written off?
Getty ImagesTuition fees in England and Wales will rise in August, after universities said they needed more money.
Many students will leave university with more debt as a result of the increase.
How do student loans work in the UK?
The details vary according to where in the UK you live, but student loans are typically made up of:
- a loan for tuition fees
- a maintenance loan for living costs
Most people are entitled to the tuition fee element, which is equal to the annual cost of their course.
From August 2025, the cost of an undergraduate degree in England and Wales is £9,535 a year, up from £9,250.
The separate maintenance loan is intended to cover accommodation, food, books and equipment.
Maintenance loans are means tested, so the amount you get depends on your family's household income. You might get extra money if you are disabled, or have children.
If you are under 25 and have no contact with your parents, you might be able to apply as an "estranged student". This means your parents' financial situation is not taken into consideration.
Research by the Higher Education Policy Institute published in May 2024 suggested maintenance loans in England typically only cover about half the cost of living, and even less for students in London.
The Student Loans Company (SLC) says graduates in England who started repaying their loans in the financial year 2024-25 owed an average of £53,000.
How much can I borrow for living costs?
The amount of maintenance help available varies across the UK.
Undergraduate students in England and Wales can borrow more for day-to-day living costs in 2025-26 than in previous years.
The maximum maintenance loan for students from England living away from their parents outside of London, for example, will be £10,544, up from £10,227.
For students from Wales, it will be £11,345, up from £11,150.
Welsh students may also be entitled to maintenance grants, which do not have to be paid back.
Students from Wales studying away from home can borrow up to £11,345 from August, up from £11,150.
In Scotland, the maximum annual maintenance loan is £9,400 for under-25s. Students can also apply for a number of bursaries and grants.
Students from Northern Ireland who are studying away from home can borrow up to £6,776 (£9,492 if they go to London).
- Students from England can use the loans calculator on the Student Finance England website
- Students from Wales can go to Student Finance Wales
- Students from Scotland can go to Student Awards Agency Scotland
- Students from Northern Ireland can go to Student Finance Northern Ireland
How do I get my student loan payments?
The tuition fees are paid directly to your university or education provider.
The maintenance loan is paid directly to your bank account in instalments.
Payments are made at the start of each term in England, Wales and Northern Ireland, and monthly in Scotland.
In order to be paid you'll need to register at your university or college. You'll usually do this in the first week of your course, and you may have to take along your student finance entitlement letter.
In England you should get a text from the Student Loans Company a few days before to let you know the maintenance loan is on the way.
You can apply for funding up to nine months after the first day of the academic year for your course.
Depending on where you live, you will need to apply through:
Getty ImagesHow much interest will I be charged?
You are charged interest on the loan from the day you take it out, but the amount varies across the UK.
It is important to understand that the terms and conditions of the loan and repayments can change after you have borrowed the money.
Future interest rate rises apply to all student loans, not just new applications.
For students in England, the interest rate is normally set at the retail price index (RPI) measure of inflation. The rate usually updates every September, but can also change throughout the year.
It is currently 4.3% for anyone who started university in 2023 or later.
For students from:
- Wales, the rate is up to 7.3% depending on your earnings
- Scotland, it is 4.3%
- Northern Ireland, it is 4.3%.
The amount graduates pay back depends on how much they earn.
When do I have to start paying back my student loan?
You make one payment to cover both your tuition fees and maintenance loans.
But you do not have to start repaying your loan until you earn a certain amount of money after graduation.
You generally repay 9% of the amount you earn above this threshold.
The threshold for students in England who started university in 2023 or later, is £25,000.
In Wales it is £28,470, in Scotland £32,745 and in Northern Ireland £26,065.
You do not have to start making payments until the April after you leave your course.
Payments are made automatically through the tax system.
Some people choose to make extra repayments to clear some or all of their loan early - there is no penalty for doing this.
Can I get a refund if I pay the wrong amount?
In some cases graduates have had repayments wrongly deducted from their wages.
For example, they may have had money taken before the April when they become liable, or after their loan had been repaid in full.
Alternatively, their employer may have put them on the wrong repayment plan. Payments may also have accidentally been triggered when graduates earned more than the monthly threshold - perhaps as a result of working extra shifts or getting a bonus - but did not exceeded the annual limit.
These incorrect repayments can be refunded.
Just over £61m was given back to 216,300 customers in the 2023/24 tax year. The average refund was £280.
In May 2024, the Student Loans Company introduced a digital refund service, which was accessed by more than 400,000 people in the first six months.
You can check whether you are entitled to a refund on the SLC website.
Any overpayments you have chosen to make cannot be refunded.
When are student loans written off?
In England, students starting university in 2025 will see their loans written off after 40 years, regardless of how much they may still owe.
In Wales and Scotland this happens after 30 years and in Northern Ireland after 25 years.
You still have to repay your student loan if you leave your course early.