Daily Junction.mobi portalNews · July 8, 2026 · Daily Junction Editorial Team · 8 min
UK students pay £9,250 per year in tuition fees plus £10,000 living costs — here's how student loans work and why most graduates never repay in full.
Going to university in the UK is expensive. Students pay £9,250 per year in tuition fees (frozen since 2017) and borrow up to £10,227 per year for living costs (rent, food, books), totaling £58,431 debt for a three-year degree. But the student loan system is not like normal debt — it is more like a graduate tax. You only repay when you earn over £25,000 per year, and you pay 9% of earnings above that threshold for 40 years, after which any remaining debt is written off. Most graduates (60–70%) will never repay their loans in full, and the average graduate repays £30,000–£40,000 over 40 years before write-off. Here is everything you need to know about UK university costs, student loans, and repayment.
England: £9,250 per year (frozen since 2017)
Scotland: Free for Scottish students; £9,250 for rest of UK
Wales: £9,000 per year
Northern Ireland: £4,750 for NI students; £9,250 for rest of UK
Tuition fees have been frozen at £9,250 since 2017, despite inflation rising 30% over that period. In real terms, fees are now worth £7,100 (2017 prices), and universities are struggling financially.
The maintenance loan covers rent, food, books, transport, and other living costs. The amount depends on where you live and your household income.
Living away from home, outside London:
Living away from home, in London:
Living with parents:
The maintenance loan is means-tested — the more your parents earn, the less you get. Parents are expected to top up the shortfall, but many cannot or do not.
| Item | Cost per year | Total (3 years) |
|---|---|---|
| Tuition fees | £9,250 | £27,750 |
| Maintenance loan (max, outside London) | £10,227 | £30,681 |
| Total debt | £19,477 | £58,431 |
This is the maximum debt for a student living away from home outside London. Students in London borrow more (£68,286 total), students living with parents borrow less (£47,313 total).
The maintenance loan often does not cover actual living costs. Students also need money for:
Many students work part-time (10–20 hours per week) to cover the shortfall, or rely on parents, or take out private loans.
The tuition fee loan (£9,250 per year) is paid directly to the university. You never see the money — it goes straight from the Student Loans Company to the university.
The maintenance loan (up to £10,227 per year) is paid to you in three instalments (start of each term). You can spend it on whatever you want (rent, food, books, nights out).
Student loans charge interest from the day they are paid out. The interest rate depends on when you took out the loan:
Plan 5 (from September 2023):
Plan 2 (2012–2023):
Plan 1 (pre-2012):
The interest rate is controversial because it is higher than inflation and higher than mortgage rates, meaning the debt grows faster than graduates can repay it.
You start repaying your student loan the April after you graduate (or leave university), but only if you earn over the repayment threshold.
You repay 9% of earnings above the threshold. For example:
Earning £30,000 per year (Plan 5):
Earning £40,000 per year (Plan 5):
Earning £60,000 per year (Plan 5):
Repayments are deducted automatically from your salary (like tax and National Insurance) through PAYE.
Most graduates (60–70%) will never repay their loans in full. The Institute for Fiscal Studies estimates:
The student loan system is effectively a graduate tax — you pay 9% on earnings above £25,000 for 40 years, regardless of how much you borrowed.
Almost never. Only high earners (£50,000+) who will repay in full should consider early repayment. For most graduates, early repayment is a waste of money.
Only if you are a high earner (£50,000+) and will repay in full. In this case, early repayment saves you interest. But even then, you might be better off investing the money instead.
International students (non-UK, non-EU) pay £15,000–£40,000 per year in tuition fees, depending on the course and university:
International students cannot access student loans and must pay upfront. They also pay higher living costs (no access to NHS, must pay immigration health surcharge).
International students subsidise UK students — universities charge them 2–4 times more than UK students, and use the profit to cross-subsidise UK students and research.
UK universities are in financial crisis:
Tuition fees have been frozen at £9,250 since 2017, despite inflation rising 30%. In real terms, fees are now worth £7,100 (2017 prices), and universities are losing £2,150 per UK student per year.
International student numbers fell 20% in 2023–24 after the government restricted student visas and banned most students from bringing dependants. This has cut university income by £1–2 billion per year.
Universities are:
Some universities (e.g., Coventry, Huddersfield) are in financial distress and may close.
The Labour government (elected 2024) has refused to raise tuition fees, arguing that students already pay too much. But universities say they cannot survive without higher fees or more government funding.
Arguments for:
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