# UK Student Finance Explained

> A clear guide to UK student finance: tuition fee loans, maintenance loans, and the Plan 2 vs Plan 5 repayment comparison for 2026/27.

Two loans, two repayment plans, one 40-year question. This guide covers how UK student finance works in England, what you borrow, and how Plans 2 and 5 differ.

## The two loans

Full-time undergraduates in England can get two loans from Student Finance England:

- **Tuition fee loan:** up to **£9,790 a year** in 2026/27, paid directly to your university. You never see this money.

- **Maintenance loan:** up to **£14,135 a year** (London), £10,830 (away outside London) or £9,118 (at home), paid into your bank account for living costs. The amount depends on household income.

Over three years outside London, a typical total debt is around **£55,000 to £60,000** (tuition plus maintenance).

## Plan 2 vs Plan 5

## What the comparison means

**Lower earners** pay more per month under Plan 5 (the lower threshold bites), but most will never repay in full under either plan, so the loan is effectively a 9% graduate contribution for 30 or 40 years. **Higher earners** benefit from Plan 5's lower interest rate and can end up paying less in total than under Plan 2 despite the longer term.

## Applying

Apply at gov.uk/student-finance. For 2026 entry, students were urged to apply by **15 May**. You can apply before your place is confirmed and update details later. EU and international students have separate, stricter eligibility rules.

## Repaying

Repayments start the April after you leave your course and only when you earn above the threshold. They are collected through PAYE, so you never miss a payment or overpay by accident. If you move abroad, tell the Student Loans Company; thresholds are set per country.

## Limitations

This guide covers England (Student Finance England). Scotland, Wales and Northern Ireland run separate systems with different rates and, in some cases, grants or bursaries. Figures are for 2026/27; thresholds and rates change over time, so check gov.uk/student-finance for the current year.

## Frequently asked questions
### Am I on Plan 2 or Plan 5?

Plan 5 covers courses in England started on or after 1 August 2023. If you started before then, you are on Plan 2. Postgraduate loans are on a separate plan (6% above £21,000).

### How much is the tuition fee loan?

Up to £9,790 a year in 2026/27 for full-time undergraduate courses in England, paid directly to your university.

### Do I repay if I never earn above the threshold?

No. Repayments are 9% of earnings above £25,000 (Plan 5) or £29,385 (Plan 2) only. If you never earn above the threshold, you repay nothing and the loan is written off after 30 or 40 years.

### Does student debt affect my credit score?

No. Student loans do not appear on UK credit files and do not affect mortgage affordability checks in the same way as commercial debt, though lenders can see the monthly deduction from your payslips.

### What happens to my loan if I move abroad?

You still repay based on income, with country-specific thresholds, and you must inform the Student Loans Company before leaving the UK for more than 3 months.

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Interactive version: https://toollantern.win/uk-student-finance-explained/