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.
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How the Loan System Works
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**Tuition Fee Loan:** Up to 9,535 pounds per year paid directly to the university. Nothing is paid upfront.
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**Maintenance Loan:** For living costs. Maximum 13,022 pounds per year for students living away from home outside London.
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Plan 5 Repayment Terms
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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.
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Interest is charged at the RPI inflation rate.
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The Key Insight
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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.
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Is University Worth It?
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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.
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