Education Secretary Bridget Phillipson says graduates will only pay £8 more a month on average when student loan repayment thresholds are frozen from 2027.
She was defending the changes the government has made to Plan 2 loans, which were issued between 2012 and 2023 and have also been criticised over their high interest rates.
How do student loans work in the UK?
The details vary according to where in the UK you live, but student loans are typically made up of:
- a loan for tuition fees
- a maintenance loan for living costs
Most people are entitled to the tuition fee element, which is equal to the annual cost of their course. Current levels vary across the UK:
- England and Wales: £9,535 a year
- Northern Ireland: £4,855 for Northern Irish students or £9,535 for other UK students
- Scotland: Free for the majority of Scottish students and £9,535 for other UK students
The separate maintenance loan is intended to cover accommodation, food, books and equipment.
Maintenance loans are means tested, so the amount you get depends on your family’s household income. You might get extra money if you are disabled, or have children.
How much can I borrow for living costs?
The amount of maintenance help available varies across the UK.
Undergraduate students in England and Wales can borrow more for day-to-day living costs in 2025-26 than in previous years.
The maximum maintenance loan for students from England living away from their parents outside of London, for example, has risen to £10,544, up from £10,227.
The government is reintroducing maintenance grants of up to £1,000 per year for students from lower income households in England on courses that support its Industrial Strategy. They will be available from 2028 and the government is still drawing up a list of eligible courses.
Students from Wales studying away from home can borrow up to £11,345, up from £11,150.
Welsh students may also be entitled to maintenance grants, which do not have to be paid back.
In Scotland, the maximum annual maintenance loan is £9,400 for under-25s. Students can also apply for a number of bursaries and grants.
Students from Northern Ireland who are studying away from home can borrow up to £8,132(or £11,391 if they go to London).
- Students from England can use the loans calculator on the Student Finance England website
- Students from Wales can go to Student Finance Wales
- Students from Scotland can go to Student Awards Agency Scotland
- Students from Northern Ireland can go to Student Finance Northern Ireland
How are tuition fees and maintenance loans changing?
From 2026, both tuition fees and maintenance loans are expected to increase every year by an inflation measure called the Retail Price Index minus the interest on mortgage payments, or RPIx.
This measure fluctuates, but an increase at its October 2025 rate – when the change was announced – would see tuition fees rise by approximately £400 a year, to more than £9,900.
The government said only those universities which provide strong outcomes for students would be able to charge the maximum amount in England.
Universities which fall below the quality threshold set by the regulator in England, the Office for Students, may also face a cap on the number of students they can recruit.
If you are under 25 and have no contact with your parents, you might be able to apply as an “estranged student”. This means your parents’ financial situation is not taken into consideration.
Research by the Higher Education Policy Institute published in May 2024 suggested maintenance loans in England typically only covered about half the cost of living, and even less for students in London.
