How much is a student loan UK? Will it be enough for your tuition fees and living costs? How will it impact your studies and future? We take a look.
Before we continue, it’s important to note that the amount of student loan you can get in the UK can change each academic year. It is important to check the gov.uk website.
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How do student loans work in the UK?
Student loans include tuition fee loans to cover the cost of education and maintenance loans to help with living costs. There are also grants available to support students with financial hardships, disabilities, children or dependent adults.
Whether or not you qualify for a student loan depends on:
- Your university or college
- Your course
- If you’ve studied a higher education course before
- Your age
- Your nationality or residency status
You can find more details about these criteria on the gov.uk website.
What is the maximum student loan amount you can get?
The student loan you get depends on your unique circumstances and the criteria mentioned above. For the academic years 2020 to 2021 and 2021 to 2022, if you’re a first-time student, you could get up to £9,250 in tuition fees. However, if you’re studying an accelerated degree course, you could get up to £11,100.
The maximum amount of maintenance loan you get depends on your academic year and where you live.
|
|
2020 to 2021 academic year |
2021 to 2022 academic year |
|
Living at home |
Up to £7,747 |
Up to £7,987 |
|
Living away from home, outside London |
Up to £9,203 |
Up to £9,488 |
|
Living away from home, in London |
Up to £12,010 |
Up to £12,382 |
|
A year of a UK course studying abroad |
Up to £10,539 |
Up to £10,866 |
If you’re a part-time student, you can get a loan if your part-time course has a course intensity of 25% or more. Course intensity measures how much of your course you complete each year compared to an equivalent full-time course.
The gov.uk website provides a student finance calculator to help you find out how much you could get.
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How long will it take to repay a student loan?
How long it takes to repay your student loans depends on various factors:
- The total loan amount plus interest
- Whether your income is above or below the threshold (more on this below)
- Whether you have the money to pay off the student loan early
You are required to pay back tuition fees and maintenance loans once your income is over the threshold amount for your repayment plan. You repay 9% of the amount you earn over the threshold for plans 1, 2 and 4. The percentage reduces to 6% for the Postgraduate Loan. It might also be important to note that the threshold amounts change on 6 April every year.
Repaying your student loan for the fiscal year 2021/2022
How and when you are expected to repay your student loan depends on the loan plan you’re on:
- If you’re under Plan 1, you’ll only repay when your income is over £382 a week, £1,657 a month or £19,895 a year. This is before tax and other deductions. If you took out the loan in the 2005/2006 academic year or earlier, it is written off when you’re 65. However, from 2006/2007 onward, it is written off 25 years after the April you were first due to repay.
- Students under Plan 2 are expected to repay their student loan when their income is over £480 a week, £2,083 a month or £25,000 a year. However, it is written off 30 years after the April they were first due to repay.
- If you’re under Plan 4, you’ll only repay when your income is over £480 a week, £2,083 a month or £25,000 a year. If you took out the loan in the 2006/2007 academic year or earlier, it is written off when you’re 65 or 30 years after the April you were first due to repay. From 2007/2008, the latter applies.
- Students under a Postgraduate Loan are expected to repay their student loan when their income is over £403 a week, £1,750 a month or £21,000 a year. However, it is written off 30 years after the April you were first due to repay.
