English universities raised tuition fees to 9,535 pounds per year for 2025-26 entry. Understanding how student loans work is more important than ever.
How the Loan System Works
Tuition Fee Loan: Up to 9,535 pounds per year paid directly to the university. Nothing is paid upfront.
Maintenance Loan: For living costs. Maximum 13,022 pounds per year for students living away from home outside London.
Plan 5 Repayment Terms
Students starting from 2023 are on Plan 5. You repay 9% of income above 25,000 pounds. The repayment period is 40 years. Any balance remaining is then written off.
Interest is charged at the RPI inflation rate.
The Key Insight
For most graduates, the loan functions like a graduate tax rather than conventional debt. The headline total owed is largely irrelevant because most graduates will never repay in full.
Is University Worth It?
University remains financially beneficial for most graduates in higher-earning professions. For other subjects and institutions, the graduate earnings premium is less clear. Check Graduate Outcomes data for your specific subject before deciding.
