Student Finance

‘Student finance’ is money borrowed from the government to cover course and living fees. Course fees refers to the cost of the university course. ‘Living fees’ refers to accommodation, food/drink and other necessities outside of lectures.

It sounds overwhelming right? This is where student finance comes in – to help you cover those costs.

Student finance consists of two loans which you apply for at the same time: the Tuition Fee Loan and the Maintenance Loan. The Tuition Fee Loan covers your course fees (up to £9250) and gets paid to the university. The Maintenance Loan covers the living costs and is paid to you in termly instalments.

Those living in England should apply to Student Finance England (SFE). Similar organisations exist for those in Scotland, Wales and Northern Ireland. SFE work on behalf of the UK government to assist people progressing to higher education.

Applications for student finance for courses starting in September 2024 aren’t open yet. In the meantime, sign up to Student Finance England’s mailing list to keep updated!

Do apply for student finance well before university begins. Why? Applications will include a request for proof of identity like a passport/birth certificate. It can take up to 6 weeks for SFE to receive your identity document and confirm your eligibility.

The Maintenance Loan available for the 2024/2025 academic year varies between locations. If you live with your parents, you could receive up to £8,160. Those living away from home could receive up to £10,227 if they were going to live outside of London. Those going to live inside of London could receive up to £13,348.

All applicants are entitled to half of the maximum Maintenance Loan available. Receiving further money is dependant on extra factors like household income or estrangement. Try using SFE’s student finance calculator to predict your personal Maintenance Loan entitlement!

The loans you receive for are only for 2024/2025. Remember to reapply each year at university for further student finance! Reapplying each year becomes easier because your eligibility already on file.

No! Student loan repayments only begin the April after you course finishes. Students who start an undergraduate course after August 2023 are on Plan 5. Students on Plan 5 only start repayments when earning over £25,000. Martin Lewis from the Money Saving Expert explains this very well:

Student finance also doesn’t work like other loans. The Plan 5 loan gets written off 40 years after the first April you were due to start repayments. Having student finance also does not directly impact your credit score. A credit score is important for acquiring loans/mortgages in the future.

Universities offer scholarships and bursaries which are ideal in supplementing your maintenance loans. Scholarships/bursaries are lump sums of money that do not need paying back at all. There are different bursaries available for different situations. Bursaries exist for care givers and those from low income households for example. Scholarships are instead available for excellent performances in exams, music, or sports.

The NHS offer their own bursaries for students undertaking a degree in the field of medicine. The NHS Bursary is for those studying Medicine or Dentistry. The NHS Learning Support Fund is for a much wider range of courses, from paramedics to midwifery. The NHS Learning Support Fund supplements the student loan, and does not replace it.

For more information on bursaries/scholarships, check out our page on Financial Support.

To find out more about student finance, visit the UK Government webpage. Drop us an email at hellofuture@cumbria.ac.uk or comment below if you have any more questions!

Feeling confident that you understand how student finance works? Why not start practising budgeting! Have a go at our budgeting activity to help prepare for independent living.