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
| Plan 2 | Plan 5 | |
|---|---|---|
| Applies to | Courses started before 1 Aug 2023 | Courses started on or after 1 Aug 2023 |
| Repayment threshold | £29,385 | £25,000 (frozen until Apr 2027) |
| Repayment rate | 9% above threshold | 9% above threshold |
| Interest | RPI plus 0-3% (sliding scale) | RPI only (about 4.1% in 2026/27) |
| Write-off | 30 years | 40 years |
| Monthly at £35,000 | £42.12 | £75 |
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.