Student Loans UK - Eligibility, Repayments, Interest Rates and Property Guide 2026

Understand how student loans work in the UK, including tuition fee loans, maintenance loans, repayment thresholds, interest rates, loan write-offs and how student debt can affect renting, mortgages and property ownership.

Student loans are an important source of financial support for individuals pursuing higher education in the United Kingdom. They help eligible students cover university tuition fees and, in many cases, contribute towards accommodation, transport, food and other living expenses.

Unlike conventional personal loans, most government-backed UK student loans are repaid according to income rather than through fixed monthly instalments.

The amount graduates repay depends on their repayment plan, earnings and applicable thresholds. Repayments generally begin only when income exceeds the relevant threshold, although interest may accrue before repayments start.

For university students, graduates, international applicants and families planning education expenses, understanding student finance is essential for making informed financial decisions.

Student loans can also influence wider financial commitments. Graduates applying for mortgages, renting property in London or planning to purchase their first home may need to consider how student loan deductions affect their disposable income.

Fraser Bond, a UK property agency and real estate consultancy, supports tenants, homeowners, buyers and investors across London and the wider UK through residential lettings, property sales and property management services.

This guide explains the UK student loan system, eligibility requirements, repayment plans, interest rates, available financial support and the relationship between student debt and housing affordability.

What Are Student Loans?

Student loans are financial arrangements designed to help eligible individuals pay for higher education.

In the UK, government-backed student finance is administered through the relevant national student finance systems, with the Student Loans Company providing services across the UK.

Depending on eligibility, support may include tuition fee loans, maintenance loans and postgraduate loans.

The terms differ according to the student's home nation, course, academic year and repayment plan.

Government-backed student loans should not be confused with commercial loans marketed to students.

Private student borrowing may have different interest rates, repayment conditions and eligibility requirements.

Types of Student Loans in the UK

Eligibility and the amounts available vary between England, Wales, Scotland and Northern Ireland.

How Much Student Loan Can You Get in 2026?

The amount available depends on where the student normally lives, household income, study location and course type.

For eligible full-time undergraduate students receiving Student Finance England support in the 2026–2027 academic year, the maximum standard Tuition Fee Loan is £9,790.

Maintenance Loan Rates for 2026–2027

These are maximum standard rates, not amounts automatically awarded to every applicant.

Students with lower household incomes may qualify for more support, while some students eligible for benefits can receive higher maximum loans.

Who Is Eligible for Student Loans?

Eligibility depends on several factors, including residency, nationality or immigration status, course type, previous study and the university or college attended.

Applicants generally need to be studying an eligible course at an approved institution.

Can International Students Get UK Student Loans?

International students do not automatically qualify for government-funded student finance simply because they have received admission to a UK university.

Eligibility depends on immigration status, residence history and the specific rules applying to the relevant student finance authority.

Some individuals with settled status, qualifying pre-settled status or other eligible immigration categories may qualify.

Students who are not eligible may need to consider scholarships, bursaries, family support or private funding.

How to Apply for Student Loans

Students normally apply through the student finance authority responsible for their home nation.

The application process generally involves creating an online account, selecting the academic year, providing course details and submitting relevant personal and household information.

Some applicants must provide evidence of identity, residency or household income.

Students should apply early to reduce the risk of delayed maintenance payments.

Student Loan Repayment Plans in the UK

The UK operates different student loan repayment plans.

The applicable plan depends primarily on where and when the individual studied and the type of loan received.

Student Loan Repayment Thresholds 2026–2027

These thresholds apply during the 2026–2027 tax year and can change in future years.

Repayments are calculated on income above the relevant threshold, not on the graduate's entire salary.

How Much Student Loan Will You Repay?

For most undergraduate repayment plans, borrowers repay 9% of earnings above their threshold.

For example, an employee earning £35,000 annually on Plan 5 has income of £10,000 above the £25,000 threshold.

Their approximate repayment would be £900 annually, or £75 per month, assuming earnings are distributed evenly.

Student Loan Repayment Examples

These are simplified monthly illustrations. Actual payroll deductions depend on pay frequency, rounding and taxable earnings.

Student Loan Interest Rates in 2026

Government-backed student loans accrue interest according to their repayment plan.

For the period from 1 September 2026 to 31 August 2027, the announced interest arrangements include:

Rates may be revised under applicable government rules.

Interest can increase the outstanding balance even when a graduate's income is below the repayment threshold.

When Do Student Loan Repayments Start?

Repayments generally begin from the April after the student finishes or leaves their course, provided their earnings exceed the applicable threshold.

Plan 5 has additional commencement rules, with repayments beginning no earlier than April 2026.

Employees normally repay through deductions from their wages.

Self-employed borrowers generally make repayments through Self Assessment.

What Happens If You Earn Below the Repayment Threshold?

For income-contingent government student loans, repayments normally stop when earnings fall below the relevant threshold.

They restart when income rises sufficiently.

However, interest may continue accumulating on the outstanding loan balance.

Borrowers living abroad may be subject to different country-specific thresholds and reporting requirements.

When Are Student Loans Written Off?

Government-backed student loans may be cancelled after a specified period, depending on the repayment plan.

These are general rules. Borrowers should confirm the precise terms applying to their loan.

Qualifying student loans may also be cancelled in certain circumstances involving death or permanent disability.

Can You Pay Off Your Student Loan Early?

Yes.

Borrowers can normally make voluntary repayments towards government-backed student loans.

However, early repayment is not necessarily financially advantageous for everyone.

Some graduates may never repay their full balance before the loan is written off.

Making additional payments towards a loan that would otherwise be cancelled may not produce a financial benefit.

Individuals should consider expected future earnings, interest rates and other financial priorities before making voluntary overpayments.

Student Loans and Credit Scores

Government-backed income-contingent student loans do not normally appear on standard UK credit reports in the same way as personal loans or credit cards.

However, student loan deductions can affect disposable income.

Mortgage lenders may consider these deductions when assessing affordability.

Private student loans may have different credit reporting arrangements.

Do Student Loans Affect Mortgage Applications?

Yes, student loan repayments can influence mortgage affordability.

Although the outstanding balance of a government-backed student loan is not generally assessed like conventional unsecured borrowing, lenders consider the amount deducted from an applicant's income.

For example, a graduate earning £40,000 on Plan 5 may repay approximately £112.50 monthly.

That deduction reduces the income available for mortgage payments and other household expenditure.

The impact depends on the lender's affordability assessment and the applicant's wider financial circumstances.

Can You Buy a House with Student Loan Debt?

Yes.

Having an outstanding government student loan does not automatically prevent someone from purchasing property.

Mortgage lenders generally assess income, deposit, existing financial commitments, credit history and affordability.

Graduates with stable earnings and sufficient savings may qualify for mortgage finance even where they have substantial student loan balances.

Fraser Bond assists first-time buyers and other property purchasers seeking residential opportunities across London and the wider UK.

Student Loans and Renting in London

London is one of the UK's major university destinations, with students often facing substantial accommodation expenses.

Maintenance Loans may contribute towards rent, utilities, food and transport.

However, the amount received may not cover every expense, particularly in higher-cost rental markets.

Students should prepare a realistic budget before signing a tenancy agreement.

Can Student Loans Be Used to Pay Rent?

Yes.

Maintenance Loans are intended to help with living costs, which can include accommodation.

Students may use maintenance funding towards university halls, private student housing or other eligible residential accommodation.

However, Tuition Fee Loans are normally paid directly to the university or college rather than being available for rent.

Student Accommodation Costs in London

Accommodation costs vary depending on the location, property type, room size and facilities.

Students may consider university-managed halls, private purpose-built student accommodation, shared houses or private flats.

When comparing accommodation, students should assess the total cost rather than rent alone.

Bills, transport, deposits and tenancy conditions can substantially affect affordability.

Fraser Bond provides residential lettings services across London, helping tenants explore suitable accommodation options.

Student Loans and Guarantors

Some landlords require student tenants to provide a guarantor.

A guarantor may agree to meet certain financial obligations if the tenant fails to do so.

This is separate from the student's government loan arrangement.

Students should understand the tenancy agreement and any guarantor obligations before signing.

International students without UK-based guarantors may need to explore alternative arrangements with landlords or accommodation providers.

Student Loans for Postgraduate Students

Eligible postgraduate students may receive financial assistance towards master's or doctoral study.

For the 2026–2027 academic year, Student Finance England provides maximum loans of:

These amounts generally cover the duration of the eligible course rather than each academic year.

Postgraduate loans have different repayment conditions from undergraduate loans.

Student Loans and Self-Employment

Self-employed graduates may need to repay their student loans through the Self Assessment tax system.

Repayments are calculated according to the applicable income and repayment rules.

Self-employed individuals should account for student loan obligations when planning annual tax payments.

What Happens to Student Loans If You Move Abroad?

Moving overseas does not automatically cancel a government-backed UK student loan.

Borrowers may need to notify the Student Loans Company and provide evidence of their overseas income.

Country-specific repayment thresholds can apply.

Failure to provide the required information may lead to fixed repayment assessments, penalties or other enforcement consequences.

Student Loans and Bankruptcy

Most government-backed UK student loans are not discharged through bankruptcy.

This means that entering bankruptcy does not generally eliminate qualifying student loan obligations.

Private student borrowing may be treated differently depending on its contractual and legal characteristics.

Borrowers facing serious financial difficulties should obtain independent debt advice.

Student Loan Repayment Problems

Borrowers experiencing financial difficulties should review their repayment plan and income information.

Where deductions appear incorrect, they should contact the Student Loans Company or relevant payroll administrator.

Graduates whose annual earnings fall below the applicable threshold may be eligible for a refund of certain repayments made during the tax year.

Individuals should avoid assuming that missed payments on a private loan will be treated in the same way as income-contingent government student loan repayments.

Frequently Asked Questions About Student Loans

How much student loan can I get in the UK?

The amount depends on eligibility, household income, course type and living arrangements. In England, the maximum standard Tuition Fee Loan for 2026–2027 is £9,790.

What is the maximum Maintenance Loan in London?

For eligible full-time students receiving standard Student Finance England support, the maximum for living away from parents in London is £14,135 in 2026–2027.

When do student loan repayments start?

Repayments normally begin from the April after leaving or completing the course, provided income exceeds the relevant threshold.

Do student loans affect credit scores?

Government-backed income-contingent student loans generally do not appear on standard credit reports like conventional personal loans.

Can student loans affect getting a mortgage?

Yes. Monthly student loan deductions can reduce disposable<