Student loans and finance 2023

When it comes to funding your degree in 2023/24, you'll find plenty of student finance options available, including student loans to help cover your tuition fees and support towards your living costs

Tuition fees

Universities charge tuition fees to cover the costs of running their undergraduate courses. They can also account for registration, supervision, exams and graduation expenses.

Tuition fees are set at different levels depending on where you live, so universities will first need to carry out an assessment to determine your status.

In England, universities can charge up to £9,250 per year for 2023/24 entry - this figure is the same cap as for the last four academic years. It applies to UK students from all regions, as well as students from within the European Union (EU) who have lived in the UK for more than three years prior to the start of your course, and have settled status.

The Teaching Excellence Framework (TEF) means that only institutions that perform well in a new teaching quality assessment can increase their fees. Read more about this at comparing UK universities.

Scottish universities don't charge tuition fees to students from Scotland, as you can apply to have the home fees of £1,820 paid for you in full by the Student Awards Agency for Scotland (SAAS). But students from England, Wales and Northern Ireland must pay up to a maximum of £9,250 per year.

If you study in Wales, you'll be charged up to £9,000 per year. This applies to all students from Wales, England, Scotland and Northern Ireland.

Universities in Northern Ireland will charge a maximum of £4,710 per year to Northern Irish students, and up to £9,250 to English, Scottish and Welsh students.

In all parts of the UK, fees for EU and other international students are set on a variable scale and are usually higher. University websites display the most up-to-date fee information.

You'll need to fund the cost of study either through student finance, sponsorship or self-financing.

Student living costs

According to Save the Student's Student Money Survey 2022, the average student spends £924 per month on their living costs.

Your most significant outgoing is likely to be your rent, whether you decide to live in halls of residence or privately rented housing. You should therefore research your student accommodation options thoroughly.

You'll also need to budget for any additional bills that aren't included in your rent, such as Wi-Fi access, as well as essentials such as food. Remember to set aside money for insurance, clothes, toiletries, books, course materials, printing, transport (both locally and to get back home) and social activities. Read our comprehensive guide on what to take to university.

There are many student discounts you can take advantage of. For example, a 16-25 Railcard (for those aged 16-25 plus mature students) will give you a third off rail fares for £30 a year, or £70 for a three-year card. Also, for a small cost (£14.99 for one year or £24.99 for up to three years) a TOTUM Student+ discount card provides access to a variety of useful savings with brands such as Apple, Virgin Media, ASOS, Domino's, Hello Fresh and the Co-op.

If you live in a student house and everyone is studying full time, you don't have to pay any council tax. Apply for this exemption by phoning your local council or by visiting its website.

Your living costs will be considerably higher if you're studying in London compared with the rest of the UK.

According to NatWest's Student Living Index 2022 report, the ten most affordable UK cities for students across 21 popular university cities are:

• Cardiff
• Cambridge
• Southampton
• Sheffield
• Coventry
• York
• Durham
• Oxford
• Bristol
• Birmingham

These cities were said to offer the best value for money when it comes to the cost of living in relation to monthly income.

Surprisingly, Manchester was reported to have the highest average student monthly rent in the country at £555.60. This is £100.20 more expensive than the UK student average of £455.40, while the cost of living in London is now down to £505.50. It was revealed that average student rents have fallen by 12% since 2021.

Student loans

If you're planning on studying for one of the following undergraduate qualifications, support is available to help with the costs of tuition:

• undergraduate degree (BA, BSc, etc.)
• foundation degree
• Certificate of Higher Education (CertHE)
• Diploma of Higher Education (DipHE)
• Higher National Certificate (HNC)
• Higher National Diploma (HND)
• Initial Teacher Training (ITT) course.

For Masters courses, see funding postgraduate study.

While eligibility is also determined by factors such as your age, nationality or residential status, those looking to study their first degree on a full-time basis should be able to apply for a repayable student loan provided by the government.

Part-time students studying at least 25% of the equivalent full-time course across an academic year may also be entitled to support.

Student loans are split into two distinct parts: tuition fee loans and maintenance loans.

Tuition fee loans of up to £9,250 a year cover your course fees. You don't receive this money - it's paid directly to the university running your course. Part time students may be able to get a tuition fee loan of up to £6,935.

For those studying for an accelerated degree (a two-year course instead of the traditional three), you could get up to £11,100.

Maintenance loans

Support to help with living costs is available in the form of a means-tested maintenance loan. The loan is paid directly into your own bank account at the start of term. To help you estimate how much you're likely to receive if you're from England (or the EU and have settled status), visit GOV.UK - Student finance calculator.

For the 2023/24 academic year, you'll receive up to:

• £8,400 if you're living at home
• £9,978 if you're living away from home, outside of London
• £13,022 if you're living away from home, in London
• £11,427 if your UK course incorporates a year spent studying abroad.

The level of maintenance loan you're entitled to is related to your household income and where you plan to study. The assessment takes into account your own income, whether you're under 25, live with at least one of your parents and your parents' income. If you've had no contact with your parents for over a year, there's the possibility of applying as an estranged student.

There's no upper age limit on student loans, but in most cases, you cannot apply if you've studied at undergraduate level before. For full details on who qualifies for student finance, see Student Finance - Eligibility.

The government has announced that EU students, and those from Iceland, Liechtenstein, Norway or Switzerland, may continue to receive a tuition fee loan as well as help with living costs for the duration of their course.

For maintenance loans in other home nations, see:

• Student Finance NI - Maintenance loan
• Student Finance Wales - Help with living costs

How to apply for student finance

Applications for full-time undergraduate courses in England usually open from March. As it can take up to six weeks to process a student loan application, you should aim to apply for your loan by 31 May if your course starts between 1 August and 31 December. You don't need to have a confirmed offer of a place on a course before applying.

The final deadline for student finance is nine months after the start of the academic year for your course.

Students from England can register and apply online through Student Finance England. From here you can track your application, check your student finance payment dates and make any amendments to your details.

EU applicants with settled status can also apply online for tuition fee support and help with their living costs. However, if you're applying for tuition fee support only, you'll need to download the forms and apply by post.

If you live in Scotland, Wales or Northern Ireland you should apply through the following bodies:

• SAAS
• Student Finance Wales
• Student Finance Northern Ireland (NI)

Repaying student loans

Interest is typically charged on student loans at the retail price index (RPI) plus up to 3%. However, you don't have to repay these loans until the April after you graduate or leave your course and are earning £27,288 or more a year (£2,274 a month) before tax and other deductions. You'll then make repayments at a rate of 9% of your income over the threshold.

There's no penalty should you wish to pay off some or all of your loan amount outside of this repayment threshold.

If you're employed, the amount will be automatically deducted from your salary at the same time as tax and National Insurance (NI). However, it's advisable to hold onto your payslips and P60 form, as you'll need to produce them if you ever request a refund.

Read more about student loan repayment at GOV.UK - Repaying your student loan.

How to cancel student finance

If your plans change before the start of your course, you can amend or cancel your funding application. You'll have to contact Student Finance England or the relevant administering body to process this.

Once the first term of university has started, as a full-time student who normally resides in England, Wales or Northern Ireland, you'll still be liable for 25% of your tuition fee loan even if you decide to withdraw, transfer or suspend your studies at a later date. This percentage increases to 50% after the first day of the second term and 100% if you start the third term.

If you normally live in Scotland, where tuition fees are paid directly to the university in one instalment, and you plan to withdraw from your course before the set date, no tuition fee loan will be paid to you. After this date, the loan will be transferred to your new course and university.

With maintenance loans, you'll become liable for each instalment as soon as it's paid (at the start of term). This includes any interest accrued, which will be added when you're due to start your repayments.

You should speak to the relevant awarding body, such as Student Finance England, before making your decision. This is because leaving your course early may affect your chances of receiving financial support in future. See our advice on changing or leaving your course.

Hardship funds

While the Access to Learning Fund has now been replaced, additional financial support is available for:

• students on a low income
• students with children, especially single parents
• students previously in care
• disabled students
• mature students with existing financial commitments.

To check your eligibility for extra help, visit GOV.UK - Extra money to pay for university.

You may be able to get help from your university, as well as charitable trusts. Non-repayable bursaries, scholarships and awards are available for students who'd otherwise be unable to afford to study at this level. Contact your university to find out what's on offer, whether you're eligible and how to apply.

Meanwhile, if you find yourself in financial difficulty after your course has started, your university may be able to provide money from its hardship funds to assist you. Apply through your university's support services.

Student bank accounts

Most high street banks have accounts aimed specifically at students and it's a good idea to open one of these before starting your course.

To be accepted for a student bank account, you'll need to have your university place confirmed - but once you have the evidence to prove this, you can make use of the benefits before starting your course.

When you're deciding which bank to choose, don't just pick the one with the best free gift. While incentives such as student rail cards and other discounts are always welcome, the size of the 0% overdraft facility will prove to be the greatest help when money is tight.

Browse the websites of the major banks to find the best option, get independent advice from consumer website MoneySavingExpert.com or use comparison websites such as Compare the Market to help you reach a decision.

Find out more

• Discover how to save money as a student.
• Follow the process of getting into university.
• Get the full lowdown on university life.