Thinking about a student loan can feel overwhelming, but it doesn’t have to be. This guide breaks down the basics – who can apply, how much you can borrow, what interest looks like, and the smartest ways to pay it back. By the end, you’ll know how to keep your loan manageable and avoid common pitfalls.
In the UK, student loans are run by the Student Loans Company (SLC). If you’re a UK resident, studying at a recognised university, you’ll usually qualify for a loan to cover tuition fees and living costs. Tuition loans cover the full fee amount, while maintenance loans depend on where you live and whether you have a partner. For example, a student in London can get up to £12,750 for living costs, while someone outside London might receive around £9,750.
Eligibility also hinges on your course length and level. Most undergraduate programmes get the full tuition loan, but postgraduate courses have lower limits. Always check the latest SLC tables – they update each academic year.
Interest on student loans is tied to the Retail Price Index (RPI) plus a small extra, depending on your income. While you’re studying, the rate is RPI + 3 % for most borrowers. Once you graduate and earn over the repayment threshold (currently £27,295 a year), you start paying 9 % of the amount you earn above that line.
Payments are collected through the tax system, so you never miss a due date if you’re employed. If you’re self‑employed, you’ll need to set up direct payments. The loan is written off after 30 years (or 25 years for newer loans), so you won’t carry it forever.
Here are three quick tips to keep your repayment low:
Managing a student loan isn’t about avoiding payment; it’s about planning so you stay in control.
Beyond the basics, there are a few practical steps you can take now:
Remember, a student loan is an investment in your future earnings. Treat it like any other debt: know the terms, watch the interest, and have a repayment plan. With the right approach, you can graduate with a degree and a loan you feel confident handling.
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