University tuition fees and the amount students can borrow to cover living costs in England will rise in line with inflation every year from 2026, increasing the likelihood that many graduates will leave university with higher levels of debt.
According to the Student Loans Company (SLC), graduates in England who began repaying their loans during the 2024–25 financial year owed an average of £53,000.
How student loans work in the UK
Student loans across the UK generally consist of two parts: a tuition fee loan and a maintenance loan to help cover living expenses such as accommodation, food, books and equipment. While the structure is similar nationwide, the amounts available vary depending on where students live and study.
Most students qualify for a tuition fee loan that covers the full cost of their course. Current annual tuition fee limits are:
- England and Wales: £9,535
- Northern Ireland: £4,855 for Northern Irish students, or £9,535 for other UK students
- Scotland: Free for most Scottish students, or £9,535 for students from elsewhere in the UK
Maintenance loans are means-tested, with eligibility based on household income. Students who are disabled, have children or are estranged from their parents may be entitled to additional support.
Research published by the Higher Education Policy Institute in May 2024 found that maintenance loans in England typically cover only about half of students’ living costs, and even less for those studying in London.
How much can students borrow for living costs?
Maintenance loan limits differ across the UK and have increased for the 2025–26 academic year.
In England, students living away from their parents outside London can borrow up to £10,544, up from £10,227. The government has also announced the return of maintenance grants of up to £1,000 a year for students from lower-income households on courses aligned with its Industrial Strategy. These grants are expected to be available from 2028.
Welsh students studying away from home can borrow up to £11,345, while some may also qualify for maintenance grants that do not need to be repaid.
In Scotland, under-25s can borrow up to £9,400 annually and may also access bursaries and grants. Students from Northern Ireland studying away from home can borrow up to £8,132, or £11,391 if studying in London.
Students apply through the relevant funding body in their home nation, such as Student Finance England, Student Finance Wales, Student Awards Agency Scotland or Student Finance Northern Ireland.
What’s changing from 2026?
From 2026, tuition fees and maintenance loan limits in England will increase annually based on an inflation measure known as RPIx — the Retail Price Index excluding mortgage interest payments.
At the October 2025 rate, this would result in tuition fees rising by roughly £400 a year, pushing them above £9,900.
The government said only universities delivering strong student outcomes will be allowed to charge the maximum fee. Institutions that fail to meet quality thresholds set by the Office for Students could also face limits on student recruitment.
How are student loan payments made?
Tuition fees are paid directly to universities, while maintenance loans are paid into students’ bank accounts in instalments. Payments are made at the start of each term in England, Wales and Northern Ireland, and monthly in Scotland.
Students must register at their university before receiving funds and can apply for financial support up to nine months after the academic year begins.
Interest rates and repayment terms
Interest is charged on student loans from the day the money is borrowed, and rates can change over time.
For students in England who started university in 2023 or later, the current interest rate is 4.3%, linked to inflation. Rates elsewhere in the UK are similar, although Welsh students may face higher rates depending on income.
Graduates begin repaying their loans only once they earn above a set threshold. Repayments are set at 9% of income above that level and are collected automatically through the tax system.
Current repayment thresholds are:
- England: £25,000
- Wales: £28,470
- Scotland: £32,745
- Northern Ireland: £26,065
Repayments start in the April after a student leaves their course.
Refunds and loan write-offs
In cases where repayments are deducted incorrectly — such as before the repayment start date or after the loan is cleared — graduates can claim refunds. In the 2023–24 tax year, more than £61 million was refunded to over 216,000 borrowers.
Student loans are eventually written off if they are not fully repaid. In England, loans for students starting university in 2025 will be written off after 40 years. The time limit is 30 years in Wales and Scotland, and 25 years in Northern Ireland.
Students who leave their course early are still required to repay any loan they have received.
