All You Need to Know About Student Loans
How UK student loans work — how much you can borrow, how household income is assessed, how the loan is paid, and when repayments begin.
The UK government has offered student loans since 2012. Under the scheme, students can borrow up to a maximum amount towards tuition fees and maintenance. The figures are adjusted each year; the amounts below reflect what applied at the time of writing (2018/19).
How much you can borrow depends on factors such as full-time or part-time study, household income, course intensity, location and — most importantly — the course start date. The table below gives an idea of the maximum student loan available. For part-time students, course intensity must be 25% or above compared with a full-time course; your university can help calculate course intensity.
Maximum student loan (2018/19)
| Start date | Course type | Institution | Fee loan 2018/19 | Maintenance 2018/19 |
|---|---|---|---|---|
| 1 Aug 2016 | Full time | Government | £9,250 | £7,097 to £9,963 |
| 1 Aug 2016 | Full time | Private | £6,165 | £7,097 to £9,963 |
| 1 Aug 2018 | Part time | Government | £6,935 | £2,439 |
| 1 Aug 2018 | Part time | Private | £4,625 | £2,439 |
Part-time maintenance is calculated based on a student living with their parents with a household income of around £15k. An online calculator is available to estimate maintenance and fees for your own circumstances.
How to apply
The process is entirely online, but if you cannot apply online a paper form is also available to download from www.gov.uk. You will need to create a student finance account, complete the online application and declare your household income. Those household-income details are cross-checked with your parents, partner, husband or wife. You must also provide proof-of-identity documents — a UK passport and UK birth certificate are acceptable.
The household income
Your household income is your taxable income (after personal allowance) plus the income of your parents if you are under 25 and live with them. If you are over 25 and live with your partner, husband or wife, then their income counts as household income for student finance purposes.
How the loan is paid to you
The university sets the fee, and you apply for a loan following the process above. The fee part of the loan is paid directly to the university; the maintenance part is paid into your bank account, usually two weeks after term starts. You pay back both the fee and the maintenance loan.
When do you start repaying?
You do not repay anything while you are studying. Once your course has finished and you are earning more than a certain amount per year, repayments begin — in short, the more you earn, the more you repay.
If you started your course before 1 September 2012, you begin repaying once you earn more than £18,330. If you started on or after 1 September 2012, you begin repaying when you earn more than £25,000. You repay 9% of your income above whichever threshold applies (£18,330 or £25,000).
Published 13 July 2018. This article is general guidance, not advice, and may reflect tax rules and figures that have since changed. Please get in touch for advice tailored to your circumstances.
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