Student Finance Guidance For Parents
Parent's Student Finance Guide 2023
Learning about the cost of university can be overwhelming. Here is a parent’s guide to student funding and finance, to help you understand the basics for your child.
How student finance works
Student finance is split into different funding bodies across the UK:
★ Student Finance Wales (Cyllid Myfyrwyr Cymru)
★ Student Finance Northern Ireland
★ Student Awards Agency Scotland (SAAS)
Your child will need to apply for student finance from the funding body based in the country you live in. For example, if your child lives in Wales and wishes to study in London, they will need to apply for financial support through Student Finance Wales.
What is a maintenance loan?
A maintenance loan, also known as student finance, is a loan funded by the government which helps cover living costs for full-time students. Maintenance loans are based on household income. University costs to consider using a maintenance loan for include rent, food, bills and other lifestyle purchases.
How does household income affect student finance?
Maintenance loans are based on the parental household income of the student. Loans also vary depending on the student’s living situation. For example, it differs for circumstances such as living at home and living in London. The table below shows the variations of maintenance loans offered to students for 2023-2024.
| Type of Living Situation | 2023-2024 Academic Year |
|---|---|
| Living with your parents | Up to £8,400 |
| Living away from your parents, outside London | Up to £9,978 |
| Living away from your parents, in London | Up to £13,022 |
| You spend a year of a UK course studying abroad | Up to £11,427 |
Tuition fee loans for full-time students
Tuition fee loans are not based on household income. If your child is a full-time student they are eligible for up to £9,250 in tuition fee loan. They have to pay it back, once their income is over the threshold for their payment plan.
When should you start applying for student loans?
Your child will need to apply online to complete their student finance application. If they would like to comfortably confirm their maintenance loan before the start of term they will need to apply by A-Level results day. This is because the application process takes 6 weeks to process. However, the official deadline for finance applications for 2024/2025 is the 31st May 2025.
How to give details of your household income
When your child applies for student finance they will be asked to fill in their household income details. This will need to be completed by both parents living in the household.
Disclosing parental income is part of supporting your child’s application - it helps the finance agency to determine which category of funding your child will receive. This may require you to give evidence of income.
How your child repays their student loan
Student finance is divided into different payment plans: Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate Loans. The repayment plans also vary between different student finance providers. For example, all students using Student Finance Northern Ireland use Plan 1. Click here to view all repayment plan types.
Your child will only start paying the loan back once their pre-tax income reaches the threshold for their repayment plan. The amount they pay will be the percentage of income over the threshold amount.
This percentage is 9% of your income over the threshold for Plan 1, 2, 4 or 5. Or 6% of your income over the threshold for a Postgraduate Loan plan.
For example, if your son or daughter earns £30,000 after they graduate, and they are on Plan 5. They would be earning £2,500 a month pre-tax.
The income threshold for Plan 5 is £2,083.
The monthly income (£2,500) minus the Plan 5 monthly threshold (£2,083) = £417.
In this example, they will pay 9% of £417, which is £37.53 a month.
For your son or daughter, the £37.53 a month is deducted before they receive their salary.
It can be helpful to view it as repaying it like a tax or national insurance which are also deducted before receiving your work salary.
What is the interest rate on student loans?
How much interest you’re charged depends which plan type you’re on. Interest is charged on your loan amount on a monthly basis. The interest starts being added to your loan balance after the first payment is sent through. Here are the current interest rates for each plan:
★ Plan 1 - 6%
★ Plan 2 - 7.1%
★ Plan 4 - 6%
★ Plan 5 - 7.1%
★ Postgraduate Loan Plan - 7.1%
Bursaries and scholarships
University bursaries are offered on an institution-level, varying between different schools around the country. Check with the university your child has applied for to see if they qualify for any bursaries. Bursaries, student grants and university scholarships do not need to be paid back like a loan.
Some universities offer student hardship funds. The eligibility criteria for these funds can include:
★ Low-income family
★ Student previously in care (care leaver)
★ Homeless or living in a foyer
★ Disabled student
★ Mature student with existing financial commitments
Can my child receive disabled students allowances?
A Disabled Students Allowance (DSA) may be available for your child if they have a disability that affects their ability to study. Some examples include mental health conditions, learning disabilities, physical disabilities, sensory disabilities or a long-term health condition.
To apply for a DSA, your child will need to provide evidence of their disability. The amount of financial support given to your child will depend on their individual needs.
Can my child get teacher training funding?
Students studying for teaching training have access to student finance for their tuition fees. However, your child should check to see if the subject they are training in may offer a scholarship or bursary. Use this tool to find out what funds are available.
Can my child get social work funding?
If your child is studying social work at university, they may be eligible for a social work bursary. This is financial support that helps pay for living costs and tuition fees, but does not need to be paid back. Find out more about social work bursaries here.
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