How Much Student Loan Can I Get?

When considering higher education in the UK, one of the most important financial factors for students is understanding how much they can borrow through student loans. The amount of student loan you can receive depends on several factors including your household income, where you live and study, and whether you’re applying for a tuition fee loan or a maintenance loan.

This guide will explain the different types of student loans, how much you can borrow, and what factors influence your loan entitlement.

Types of Student Loans

In the UK, student loans are provided through Student Finance England, Student Finance Wales, Student Finance Northern Ireland, or the Student Awards Agency for Scotland (SAAS), depending on where you live. There are two main types of loans available for students attending university:

1. Tuition Fee Loan – Covers the cost of your tuition fees.

2. Maintenance Loan – Helps cover living expenses such as accommodation, food, and books.

Tuition Fee Loan

A tuition fee loan is designed to cover the cost of university tuition fees, which can be up to £9,250 per year for most undergraduate courses in the UK. For students studying in Northern Ireland, the cap is £4,630, while in Scotland, tuition fees are paid for Scottish students by the government, so no loan is required for tuition.

• You can borrow up to the full amount of your tuition fees, so the total depends on the fees set by your university.

• The loan is paid directly to your university or college, not to you, and there’s no upfront cost for the student.

Maintenance Loan

A maintenance loan is meant to help students with living costs. How much you can borrow for a maintenance loan depends on various factors such as:

• Household income: Your parents’ or guardian’s income (if you are dependent) or your income (if you are independent).

• Where you live: Whether you live at home, away from home, or study in London or elsewhere.

• Whether you are eligible for other financial support: You may receive less if you get grants, scholarships, or bursaries.

The maintenance loan is typically paid into your bank account at the start of each term.

Maximum Maintenance Loan Amounts for 2024/2025

The following figures provide a general idea of how much maintenance loan you might be eligible for, but they vary based on your household income.

England

In England, the maximum maintenance loan amounts for the 2024/25 academic year are as follows:

• Living at home: Up to £8,400 per year.

• Living away from home, outside London: Up to £9,978 per year.

• Living away from home, in London: Up to £13,022 per year.

• Studying abroad for at least one term: Up to £11,427 per year.

Scotland

In Scotland, the maximum maintenance loan amount differs slightly, with the following available:

• Living at home: Up to £6,000 per year.

• Living away from home: Up to £7,750 per year.

Wales

In Wales, students are eligible for a mixture of loans and grants:

• Living at home: Up to £11,720 in total (combination of loan and grant).

• Living away from home, outside London: Up to £12,930 in total.

• Living away from home, in London: Up to £17,280 in total.

Northern Ireland

For students in Northern Ireland, the maximum maintenance loan for 2024/25 is:

• Living at home: Up to £3,750 per year.

• Living away from home: Up to £6,780 per year.

How Household Income Affects Your Loan

For the maintenance loan, household income plays a significant role in determining how much you can borrow. The higher your household income, the lower the maintenance loan you are likely to receive.

• For students with a household income of less than £25,000, you will generally receive the maximum loan amount.

• For students with a household income above £45,000, you may receive a reduced loan amount.

Your student finance application will require financial details from your parents, guardians, or partner if applicable. The amount of financial support you receive may decrease if your household income exceeds certain thresholds.

How to Apply for a Student Loan

You can apply for a student loan online through Student Finance. The application process usually opens in the spring before the academic year begins in September. You’ll need the following to complete your application:

• Your National Insurance number.

• Your passport or birth certificate for identity verification.

• Household income details (if required).

• Your university course details.

It’s recommended that you apply early to avoid any delays in receiving your loan when the term starts.

Repayment of Student Loans

You only start repaying your student loan once you finish university and earn above a certain income threshold. For students in England and Wales, as of 2024, the repayment threshold is £27,295 per year. You’ll repay 9% of your income above this threshold.

For example, if you earn £30,000 a year, your repayment would be calculated on £2,705, which means your annual repayment would be £243.45.

If you are from Scotland or Northern Ireland, the repayment threshold is lower, at £25,375 per year.

Interest on Student Loans

Interest is charged on your student loan from the moment you receive your first payment. The interest rate is calculated based on the Retail Price Index (RPI) plus a percentage, which varies depending on your income after graduation:

• If you're earning below the repayment threshold, interest is charged at RPI.

• If you’re earning above the threshold, the interest rate increases on a sliding scale up to RPI + 3%.

Additional Financial Support

In addition to student loans, some students may qualify for grants or bursaries that do not have to be repaid. These include:

• Disabled Students' Allowance (DSA): For students with disabilities, long-term health conditions, or specific learning difficulties.

• Childcare Grants and Parents’ Learning Allowance: For students with children.

• Scholarships or Bursaries: Offered by universities based on academic merit, financial need, or specific backgrounds.

Conclusion

The amount of student loan you can receive depends on a variety of factors including whether you’re applying for a tuition fee loan, a maintenance loan, your household income, and where you study. While student loans can ease the financial burden of higher education, it’s important to remember that they are repayable once you start earning above the threshold. However, student loans are designed to be affordable, with repayments tied to your income and interest capped at a reasonable rate.

Understanding your loan entitlement and other financial support options will help you better plan for university and manage your finances during your studies.