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Student finance: When are UK student loans written off? How do student loans work and when are they written off?
(7 months later)
Tuition fees in England and Wales will rise next year, after universities called for help with their finances. Tuition fees in England and Wales will rise in August, after universities said they needed more money.
It will increase the amount of debt many students leave university with. Many students will leave university with more debt as a result of the increase.
How do student loans work? How do student loans work in the UK?
The details depend on where in the UK you live, but student loans are typically made up of: The details vary according to where in the UK you live, but student loans are typically made up of:
a loan for tuition feesa loan for tuition fees
a maintenance loan for living costsa maintenance loan for living costs
Most people are entitled to the tuition fee element, which is equal to the annual cost of your course, external. Most people are entitled to the tuition fee element, which is equal to the annual cost of their course., external
From August 2025, the cost of an undergraduate degree in England and Wales will go up from £9,250 to £9,535 a year. From August 2025, the cost of an undergraduate degree in England and Wales is £9,535 a year, up from £9,250.
A separate maintenance loan is intended to cover accommodation, food, books and equipment. 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.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.
If you are under 25 and have no contact with your parents, you might be able to apply as an "estranged student"., external This means your parents' financial situation is not taken into consideration.If you are under 25 and have no contact with your parents, you might be able to apply as an "estranged student"., external This means your parents' financial situation is not taken into consideration.
Research in May by the Higher Education Policy Institute, external suggested maintenance loans in England actually cover only about half the cost of living, and less for students in London. Research by the Higher Education Policy Institute published in May 2024, external suggested maintenance loans in England typically only cover about half the cost of living, and even less for students in London.
The Student Loans Company says graduates in England leave university with average debts of £48,470. The Student Loans Company (SLC) says graduates in England who started repaying their loans in the financial year 2024-25 owed an average of £53,000., external
University tuition fees set to rise in England
Welsh tuition fees to rise by nearly £300 a year
How much does university cost and does it increase earnings?
How much can I borrow for living costs?How much can I borrow for living costs?
The amount of maintenance help available varies across the UK.The amount of maintenance help available varies across the UK.
Undergraduate students in England and Wales will be able to borrow more for day-to-day living costs next year. 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, will increase from £10,227 to £10,544. The maximum maintenance loan for students from England living away from their parents outside of London, for example, will be £10,544, up from £10,227.
Students studying away from home can borrow up to £11,150 if their home is in Wales (£14,170 if they go to London), but the Welsh government has announced a 1.6% increase next year. For students from Wales, it will be £11,345, up from £11,150.
In Scotland, the maximum annual maintenance loan is £9,400, external for under-25s. Welsh students may also be entitled to maintenance grants, external, which do not have to be paid back.
Students studying away from home can borrow up to £6,776 if they're from Northern Ireland, external (£9,492 if they go to London). Students from Wales studying away from home can borrow up to £11,345 from August, up from £11,150.
In Scotland, the maximum annual maintenance loan is £9,400, external 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 £6,776 (£9,492 if they go to London), external.
Students from England can use the loans calculator on the Student Finance England, external websiteStudents from England can use the loans calculator on the Student Finance England, external website
Students from Wales can go to Student Finance Wales, externalStudents from Wales can go to Student Finance Wales, external
Students from Scotland can go to Student Awards Agency Scotland, externalStudents from Scotland can go to Student Awards Agency Scotland, external
Students from Northern Ireland can go to Student Finance Northern Ireland, external. Students from Northern Ireland can go to Student Finance Northern Ireland, external
How do I get my student loan payments?How do I get my student loan payments?
The tuition fees are paid directly to your university or education provider.The tuition fees are paid directly to your university or education provider.
The maintenance loan is paid directly to your bank account in instalments.The maintenance loan is paid directly to your bank account in instalments.
These are at the start of each term in England, Wales and Northern Ireland, and monthly in Scotland. Payments are made at the start of each term in England, Wales and Northern Ireland, and monthly in Scotland.
In order to be paid you'll need to register, external at your university or college. You'll usually do this in the first week of your course and you may have to take along your student finance entitlement letter. In order to be paid you'll need to register, external at your university or college. You'll usually do this in the first week of your course, and you may have to take along your student finance entitlement letter.
In England you should get a text from the Student Loans Company a few days before to let you know the maintenance loan is on the way.In England you should get a text from the Student Loans Company a few days before to let you know the maintenance loan is on the way.
You can apply for funding up to nine months after the first day of the academic year for your course.You can apply for funding up to nine months after the first day of the academic year for your course.
Depending on where you live, you will need to apply through Student Finance England, external, Student Finance Wales, external, the Students Awards Agency Scotland, external or Student Finance Northern Ireland., external Depending on where you live, you will need to apply through:
Student Finance England, external
Student Finance Wales, external
the Students Awards Agency Scotland, external, or
Student Finance Northern Ireland, external
How much interest will I be charged?How much interest will I be charged?
You are charged interest on the loan from the day you take it out, but the amount varies across the UK.You are charged interest on the loan from the day you take it out, but the amount varies across the UK.
It is important to understand that the terms and conditions can change after you have borrowed the money. Any interest rate rises will apply to all student loans, not just new applications. It is important to understand that the terms and conditions of the loan and repayments can change after you have borrowed the money.
For students in England, the interest rate is normally set at the retail price index (RPI) measure of inflation, external. It is currently 4.3%., external Future interest rate rises apply to all student loans, not just new applications.
For students in England, the interest rate is normally set at the retail price index (RPI) measure of inflation., external The rate usually updates every September, but can also change throughout the year.
It is currently 4.3%, external for anyone who started university in 2023 or later.
For students from:For students from:
Wales, the rate is up to 7.3% depending on your earningsWales, the rate is up to 7.3% depending on your earnings
Scotland, it is 4.3%Scotland, it is 4.3%
Northern Ireland, it is 4.3%.Northern Ireland, it is 4.3%.
The amount graduates pay back will depend on how much they earn. The amount graduates pay back depends on how much they earn.
What is inflation and why is the cost of living rising?
Q&A: Is there financial support for uni students in Wales?
When do I have to start paying back my student loan?When do I have to start paying back my student loan?
You do not have to start repaying your loan until you earn a certain amount of money after graduation, external. You make one payment to cover both your tuition fees and maintenance loans.
The threshold for students in England is £25,000. But you do not have to start repaying your loan until you earn a certain amount of money after graduation., external
In Wales it is £27,295, in Scotland £31,395 and in Northern Ireland £24,990. You generally repay 9% of the amount you earn above this threshold.
You do not repay anything if you earn less than the threshold. The threshold for students in England who started university in 2023 or later, is £25,000.
The earliest you will start repaying is the April after you leave your course. In Wales it is £28,470, in Scotland £32,745 and in Northern Ireland £26,065.
You do not have to start making payments until the April after you leave your course.
Payments are made automatically through the tax system.Payments are made automatically through the tax system.
You generally repay 9% of the amount you earn over the threshold. Some people choose to make extra repayments to clear some or all of their loan early, external - there is no penalty for doing this.
Can I get a refund if I pay the wrong amount?
In some cases graduates have had repayments wrongly deducted from their wages.
For example, they may have had money taken before the April when they become liable, or after their loan had been repaid in full.
Alternatively, their employer may have put them on the wrong repayment plan. Payments may also have accidentally been triggered when graduates earned more than the monthly threshold - perhaps as a result of working extra shifts or getting a bonus - but did not exceeded the annual limit.
These incorrect repayments can be refunded.
Just over £61m was given back to 216,300 customers in the 2023/24 tax year. The average refund was £280.
In May 2024, the Student Loans Company introduced a digital refund service, which was accessed by more than 400,000 people in the first six months.
You can check whether you are entitled to a refund on the SLC website., external
Any overpayments you have chosen to make cannot be refunded.
Former students urged to check for loan refunds
When are student loans written off?When are student loans written off?
In England, students starting university this year will see their loans written off after 40 years, regardless of how much is owed. In England, students starting university in 2025 will see their loans written off after 40 years, regardless of how much they may still owe.
In Wales and Scotland it is 30 years and in Northern Ireland it is 25 years. In Wales and Scotland this happens after 30 years and in Northern Ireland after 25 years.
You still have to repay your student loan if you leave your course early., externalYou still have to repay your student loan if you leave your course early., external
Some people may opt to make extra repayments to clear some or all of their loan early - there is no penalty for doing so., external