Student finance facts and stats 2023

This page includes relevant UK student finance facts and stats for 2023, such as:

• How much student debt is expected to rise
• The average level of student debt across the UK
• How much the UK government spends on maintenance loans

According to the latest student finance facts and statistics, there were around 2.86 million students across the UK in the 2021-22 academic year. Government spending on tertiary education (those in education above school age) for 2021-22 amounted to £4.71 billion, averaging at £1,647 per student. 

After the introduction of tuition fees in 1998, students were initially charged £1,000 a year to attend university. This rose to £3,000 a year in 2006, and then £9,000 from the start of 2012-13. As of 2022-23, tuition fees now sit at £9,250 a year.

Given these drastic changes, and the current cost of living crisis, we’ve collated a range of student finance statistics for 2023. This includes:

• Average student loan debts
• Student loan interest rates
• Student cost of living statistics

Top 10 student finance facts and stats 2023

• The UK government spent over £4.5 billion on higher education in 2022-23
• In 2023, the average student maintenance loan in the UK was £5,820
• The UK average student debt in 2021-22 was £29,545
• Average student debt was over 3 times higher in England (£45,150) than Scotland (£14,840) in 2021-22
• In 2020-21, around 1.2 million people took out a student loan, to the value of £17.9 billion
• As of 2022, total UK student debt exceeded £206 billion
• By 2047, total outstanding UK student debt is predicted to exceed £458 billion
• Over 90% of UK students reported a rise in their cost of living in 2022 compared to the previous year
• According to the Natwest student living index, Bournemouth is the best UK university for student cost of living
• The UK average monthly student income is £2,893, with more than half (54%) coming from student loans
• The average UK student spends £1,048 a month, excluding rent, with almost a quarter of this (24%) going on food shopping

How much does the UK government spend on higher education?

As of 2022-23, the UK government spent £4.55 billion a year on higher education – a 3.4% decrease from the previous year. 

A breakdown of how much the UK government spends each year on higher education (2009-23)

Since 2010-11, the UK government has gradually spent less on higher education. This fell from around £15.78 billion to a low of £4.37 billion in 2019-20, representing a fall of 72% in a 9-year period.

How much does the UK government spend on student maintenance loans?

Between 1990 and 2006, the annual number of student maintenance loans taken out jumped from 180,000 to 881,000 – an increase of nearly 390%. 

In 2015, the average maintenance loan for students was £4,000. This jumped to £6,100 in 2016, and £7,000 for those starting university in 2021-22.

A breakdown of how much the government spends on student maintenance loans

As of 2022, the total value of student maintenance loans stood at £206.3 billion – an increase of 13% from 2021. 

Since 2012, there’s been year-on-year growth in the amount spent on maintenance loans by the UK government. Between 2012 and 2016, this figure almost doubled, from £46.2 billion to £89.5 billion. 

In 2017, total maintenance loan spending exceeded £100 billion, and grew by approximately £20 billion a year up until 2023. 

Maintenance loan statistics in England 2023-24

The latest student finance figures reveal that in 2023, the average student maintenance loan was around £5,820 a year. But this can vary depending on:

• Whether you live in London or not
• Where you’ll be living while studying (i.e. at home or away from home)
• Your combined household income.

A breakdown of maintenance loan amounts in England for the 2023-24 academic year

(Source: Savethestudent.org)

The maximum amount a student studying in England can get for a maintenance loan and grant package is £13,022. This is available to students living away from home and in London, with a combined household income of £25,000 or less. 

The minimum maintenance loan and grant package available for English students is £3,698. This is available to those with a combined household income of £60,000 or more, and will be living at home while studying at university.  

 

Maintenance loan statistics in Wales 2023-24

The Welsh government offers students a combination of maintenance loans and grants. Similar to other parts of the UK, this depends on your household income and where you’re living and studying.

Welsh students in the same living situation all get the same amount of money. The difference is how much of that falls under a grant or maintenance loan.

A breakdown of maintenance loan amounts in Wales for the 2023-24 academic year

(Source: Savethestudent.org)

Similar to the rest of the UK, maintenance loans in Wales are based on exact household incomes, rather than bands.

The maximum amount a student studying in Wales can get for a maintenance loan and grant package is £14,635. This is available to students living away from home and in London.

The minimum maintenance loan and grant package available for Welsh students is £9,950, and is available to those living at home while studying at university.

Maintenance loan statistics in Scotland 2023-24

The funding body in Scotland for university students is the Student Awards Agency Scotland (SAAS). They offer bursaries and grants as part of their student finance package.

Like other parts of the UK, the amount you get depends on your household income. But, unlike other areas, it’s not dependent on where you’ll be studying, and is based on bands rather than exact income levels.

A breakdown of maintenance loan amounts in Scotland for the 2023-24 academic year 

(Source: Savethestudent.org)

The maximum maintenance loan and bursary package available for Scottish students is £9,000. This is eligible to those from the lowest income bracket (less than £20,999 a year), with just under a quarter of this (£2,000) coming from a grant. 

The minimum maintenance loan and grant package available in Scotland is £6,000. This is eligible to those in the highest income bracket (£34,000 a year and above) and is made up entirely of a loan.

Maintenance loan statistics in Northern Ireland 2023-24

In addition to maintenance loans, Student Finance Northern Ireland offers students a grant. Your level of household income and where you’ll be studying determine how much of your student finance package is made up of grant and loan. 

A breakdown of maintenance loan amounts in Northern Ireland for the 2023-24 academic year for those living at home 

(Source: Savethestudent.org)

The minimum amount available for students in Northern Ireland living at home while studying is £3,939. This is available to those from a combined household income of more than £50,451, and is entirely made up of the student loan.

The maximum amount available to Northern Ireland students living at home while at university is £6,610. This is an almost even split between loan and grant.

A breakdown of maintenance loan amounts in Northern Ireland for the 2023-24 academic year for those living away from home and outside of London

(Source: Savethestudent.org)

The minimum amount available for students in Northern Ireland living away from home and studying outside of London is £5,084. This is available to those from a combined household income of more than £53,035, and is entirely made up of the student loan.

The maximum amount available in Northern Ireland to students living away from home while studying outside of London is £8,136. This is made up of 57% loan and 43% grant.  

A breakdown of maintenance loan amounts in Northern Ireland for the 2023-24 academic year for those living away from home and in London

(Source: Savethestudent.org)

The minimum amount available for students in Northern Ireland living away from home while studying in London is £7,121. This applies to those with a household income of more than £50,451, and is entirely made up of the student loan.

The maximum amount available to Northern Ireland students living away from home and studying in London while at university is £10,852. This is available to those from the lowest income bracket (£19,203 or less) and is made up of around two-thirds loan (68%) and one-third (32%) grant.

UK average student loan debt statistics

As of 2021-22, the average student loan debt across the UK was highest in England (£45,150), followed by:

• Wales (£33,830)
• Northern Ireland (£24,360)
• Scotland (£14,840)

A breakdown of the average student loan debt statistics in England, Scotland, Wales and Northern Ireland

Average student loan debt statistics in England reveal it more than doubled (+113%) between 2014-15 and 2021-22. This represents the largest growth of all UK countries during this time period.

In other parts of the UK:

• Scotland’s average student loan debt rose nearly 57%
• Typical student debt in Wales increased by more than three-quarters (78%)
• Average student loan debt in Northern Ireland rose by more than a third (35%)

A breakdown of UK student loan statistics between 1990 and 2021

(Source: House of Commons Library)

As of 2020-21, almost 1.2 million students took out a student loan, to the value of nearly £17.9 billion. This resulted in an average student loan value of £15,030 per student, with 95% of eligible students taking out a loan. This is in contrast to 1990-91, when just over 1 in 4 (28%) of eligible students took out a loan for university.

Since 1990-91, there’ve been some significant changes in UK student loan statistics, including:

• A 560% increase in the number of students applying for student loans in the UK
• A rise of more than 25,000% in the value of student loans, when the value stood at just £70 million for 1990-91
• An increase of 3,700% in the average value of student loans, from a low of £390 in 1990-91
• A 239% rise in the number of students eligible for student loans over this 30-year period

What’s the total value of UK student loan debt?

As of 2022, total UK student loan debt reached £206.3 billion – a 13% increase from 2021, when the figure stood at £181.8 billion.

A breakdown of total UK student loan debt statistics by year

Data from the House of Commons Library shows that UK student loan debt has gradually risen over time. In 2006, it stood at £17.7 billion, increasing to £89.5 billion just 10 years later (+405%).

In 2017, total UK student loan debt surpassed the £100 billion mark for the first time, and has continued to rise.

Is UK student loan debt expected to rise?

As of 2021-22, the total amount of outstanding UK student debt stood at £160.7 billion. By 2031-32, this is expected to double, reaching £321.3 billion.

A breakdown of how UK student debt statistics are expected to increase between 2021 and 2067

Total UK student debt is expected to rise year-on-year between 2021-22 and 2046-47, where it’s forecast to reach a peak of £458 billion. After this point, long-term government predictions suggest a fall in the amount of UK student debt, to around £375.4 billion in 2061-62.

A breakdown of projected student loan outlays between 2022 and 2028

(Source: House of Commons Library)

As of 2022-23, the projected loan outlays for UK students is around £20.1 billion. This is forecast to grow year-on-year to 2027-28, when it could reach £24 billion (+20%).

We see a similar pattern in the student loan statistics for undergraduate students. Their loan outlays are projected to rise by almost a fifth (19%) between 2022-23 and 2027-28 (£19.2 billion vs £22.8 billion). 

Postgraduate students are expected to see the biggest percentage increase in student loan outlays between 2022-23 and 2027-28 (+31%), growing from £0.8 billion to £1 billion.

A breakdown of the projected number of students receiving loans between 2022 and 2028

(Source: House of Commons Library)

Student finance statistics from the House of Common Library reveal the following trends:

• The number of students with a loan is expected to grow by 6% between 2022 and 2028, from just over 1.5 million to more than 1.6 million.
• In 2022-23, around 9 in 10 (89%) student loans were for undergraduates, accounting for almost 1.35 million students. By 2027-28, this figure is predicted to rise to 1.45 million (+7%).
• Postgraduate students accounted for less than 7% of student loans in 2022-23. Their numbers are expected to rise by 9% by 2028, but will still account for a similar percentage of the total for the year.
• Advanced learner loans are predicted to fall by 11% between 2022 and 2028, from 56,000 to 50,000.

How does the student loan interest rate affect repayments?

Full-time UK undergraduate students starting in the academic year 2022-23 are predicted to borrow an average of £42,100 over their time at university. This is typically over a 3-year period.

Of these, more than a quarter (27%) are expected to repay their loan in full, rising to 61% for the 2023-24 cohort.

The UK government is anticipated to subsidise more than a quarter (28%) of student loans for the financial year 2022-23, at a cost of nearly £6.7 billion.

For the financial year 2022-23, the government issued almost £20.1 billion in student loans. This was made up of:

• 94% plan 2, full-time higher education loans
• 4% Master’s loans
• 2% plan 2, part-time higher education loans
• 1% advanced learner loans

A breakdown of how student loan interest rates affect student loan repayments

Statistics on student finance show:

• The amount of interest paid on student loans stood at £8.35 billion, as of 2022-23. This is a 78% increase compared to figures from 2021-22.
• Between 2016 and 2019, the interest paid on UK student loans more than tripled, from £1.75 billion to £5.73 billion. This figure dropped slightly during the pandemic years to around £4.7 billion, before rising again in 2022-23.

During the same period, student loan repayment statistics followed a similar pattern of growth and decline, but with less extremes. Student loan repayments in 2016-17 stood at £1.77 billion, and more than doubled by 2019-20, reaching a peak of £4.8 billion. This figure dropped to around £3 billion between 2020-22, before rising again to nearly £4.3 billion as of 2023.

A breakdown of how the average graduate pays back their tuition fees

(Source: Wordsrated)

As of 2023, the average graduate earns almost £26,500 when they leave university, and has accumulated an average student debt of just over £45,000. Assuming an interest rate repayment of 1.25%, they’ll pay off £564 in their first year of repayments, with £563 worth of interest.

By 2044, the average graduate from 2023 can expect to earn around £44,000 a year. In the 20 years since graduating, their student debt should drop by around £15,000, to just over £29,000. In total, they’d have paid back more than £28,000, yet accumulated more than £11,000 worth of interest over this period.

Student cost of living statistics

According to an ONS study from November 2022:

• More than 9 in 10 (92%) students reported their cost of living had increased compared to the previous year.
• 91% were either somewhat or very worried about this rising cost.
• Around half (49%) of students felt they suffered with financial difficulties while at university.
• A third (33%) claimed these were minor worries, and around 1 in 6 (16%) stated they had major difficulties in keeping up with rising costs.
• More than two-thirds (68%) of students had a student loan. More than half of these students (58%) admitted it didn’t cover their living costs, and a quarter (25%) said it only just covered them.

In response to the rising student cost of living:

• Almost a third (30%) had taken on new debt. Of these, almost three-quarters (71%) claimed this was because their student loan wasn’t enough to cover their living costs.
• More than three-quarters (78%) believed the rising cost of student living would have a negative effect on their studies.
• More than a third (35%) reported they’re now less likely to do further study as a result, once their course finishes.

The average level of life satisfaction among higher education students was significantly lower than the general UK adult population (5.8 vs 6.9, respectively). Almost half (46%) of students reported a decline in their mental health since the start of the 2022 Autumn term.

Average student cost of living statistics

Natwest’s Student Living Index is calculated using average monthly accommodation and living costs for uni students, and dividing it by students’ average monthly income. The lower a city scores on the index, the ‘better’ it scores in terms of student cost of living.

After dropping by more than a fifth (22%) since 2022, the Student Living Index improved again in 2023, this time by almost a third (30%) in its average score. This indicates a gradual improvement in the standard of student living across UK universities.

A breakdown of average student cost of living statistics for UK universities in 2023

According to the most recent Natwest survey, the best UK university for student cost of living in 2023 is Bournemouth (0.31), followed closely by Cardiff (0.32).

Those universities with the highest cost of living for students are:

• Edinburgh (0.74) – for the second year in a row
• Glasgow (0.68)
• London (0.59)
• Coventry (0.58)

How much is the average student income per month in the UK?

Student finance statistics from Natwest reveal that Cardiff students typically have the highest average student income per month in the UK. At £3,328, this is marginally more than those at Bournemouth, but around £435 more than the average UK student.

A breakdown of the highest and lowest average student income per month at different universities across the UK

At the other end of the scale, students studying in Edinburgh have the lowest average income per month, at £1,454 per student. This is around £150 a month less than those attending Glasgow, and around half the national average.

What are the main sources of income for university students in the UK?

The Natwest Student Living Index reveals some interesting patterns in terms of how much students rely on different streams of income while at university. For example:

• Scottish students are less reliant on student loans than other parts of the country. This is likely due to free tuition fees for local students across Scotland.
• Students in Bournemouth are most reliant on student loans as their primary source of income (73%).
• Students studying at Oxford and Coventry are most likely to rely on their parents or family for income (48.9% and 39.6%, respectively).
• Cardiff students have the highest term-time income from part-time work (£219.54 per month) of any UK university, despite spending less time in work than the top 4 universities.
• Oxford, Edinburgh, and Newcastle students are most likely to use holiday work as part of their income during university.
• Students in Oxford are less reliant on student loans, but are more likely to depend on scholarships and bursaries compared to other universities.

A breakdown of different income sources for UK students and how this contribution changed between 2022 and 2023

According to Natwest’s student finance statistics report, the average income of a UK student rose by almost 60% between 2022-23. This rose from just over £1,600 a month to around £2,640.

There’ve been some significant changes between 2022 and 2023 in the average monthly contributions to student income from different sources, including:

• A rise in the average monthly contribution from student loans to a typical student’s income. This has almost doubled in the last year, to £1,427 per month.
• An increase in the contributions from sponsorships, from £8.51 to £337 per month.
• A decrease in the amount parents and family members are contributing to student income. This is around £110 a month less in 2023 compared to 2022.
• A 37% rise in contributions from bursaries and scholarships, from an average of £118 a month to £162.

As of 2023, more than half (54%) of students now rely on a student loan as their primary source of income. This is up slightly from 49% just 12 months earlier.

Despite improvements in the Student Cost of Living Index since 2022, just under half (47%) of students in 2023 find themselves short of money before the end of term. This figure is up from 35% in 2022.

How much does the average student spend a month in the UK?

As of 2023, the average UK student spends 40% of their time at university studying. This is up from 26% in 2022. A typical student in 2023 now spends around 119 hours a month on academic work (such as attending lectures, completing coursework, and visiting the library to study).

A breakdown of the average number of hours spent each month on various activities by UK university students

(Source: Natwest)

Between 2022 and 2023, the average number of hours spent in part-time work decreased by around 57%, from 43.16 hours per month to 18.3.

In addition to this, the number of hours students spend on streaming services averaged at 35.86 per month compared to 16.5 in 2022. This means that students now spend more time in 2023 streaming than going out with friends (approximately 30 hours per month).

When broken down by university:

• Those in Bristol, Coventry, and Portsmouth spend the most amount of time each month in part-time work (all averaging over 24 hours per month).
• The overall percentage of students with part-time jobs decreased from 46% to 42% between 2022 and 2023.
• Students studying at Oxford spend more time studying on campus than any other university (126.91 per month).

A breakdown of the average monthly spend for students on different activities in the UK

Overall, the average monthly expenditure of UK students fell by 9% between 2022 and 2023.

Student finance facts from Natwest show that a typical UK student will now spend an average of:

• £25 a month on studying (down 62% from 2022)
• £53 a month on going out (down 24% from 2022)
• £31 a month on hobbies (down 66% from 2022)
• £10 a month on home entertainment (down 83% from 2022)

In total, an average student will spend £119 a month on different activities in 2023, compared to £290 in 2022.

In 2023, around 44% of a typical student’s expenditure on activities was for going out, with just over a quarter (26%) on pursuing hobbies.

A breakdown of highest and lowest average total monthly student expenditure by UK university

In terms of average student spending per month, those in London spend more than any other students in the country (£1,445 per month). This is 16% more than students studying in Bournemouth, and almost a third (32%) more than the UK average (£1,048 per month).

Typically, students studying at York spend the least per month. With an average monthly spend of £839, this is 53% less than London students.

A breakdown of average student spending per month in the UK by category

(Source: Natwest)

When broken down by category of spending, supermarket shopping forms the largest percentage of student expenditure in 2023. At almost £110 a month on average, a typical UK student spends almost a quarter (24%) of their uni budget on food, toiletries, and household items.

This is followed by eating out and transport costs for visiting home in term time (both 8% of total monthly spend).

When it comes to taking your car to university, there are certain costs to consider, including tax, petrol, and insurance. The latter of which could add a significant amount to your average spending while at uni. Also bear in mind that some of the most car-friendly universities might not always be the most affordable in terms of car insurance.

In 2023, the average cost of student car insurance was £1,204 for those living away from home while at university. According to our data, those at University College London tend to pay the most at £1,559 for comprehensive cover, compared to £559 at Lancaster university.

What is the average cost of student accommodation in the UK?

In 2023, the average cost of student accommodation in the UK is around £592 per month. This is a rise of almost a third (30%) since 2022.

A breakdown of UK universities with the highest and lowest average student rent per month

Typically, London is the most expensive place for students to rent in the UK, with average monthly renting costs of £840. In 2022, London overtook Manchester as the UK’s most expensive place for student accommodation costs, seeing an average monthly increase of £335 in the last year alone.

Key student finance facts from Natwest’s report show that:

• Bristol is the UK’s second most expensive location for student accommodation. A typical student here is paying around £720 per month – around 15% less than those studying in London.
• Students in Newcastle, Sheffield, and Leicester are among the cheapest universities for average student accommodation costs - all less than £500 per month. Students studying in Newcastle pay on average around 90% less compared to those studying in the capital.

A breakdown of the main method for paying student rent while at university in the UK

In terms of paying rent while at university, more than two-thirds (67%) of students rely on their student loan to cover the cost.

Around 2 in 5 (42%) turn to parents or family to help with the cost of rent each month, with less than a fifth (17%) using their personal savings account.

What are average student bills per month in the UK?

As of 2023, the average student utility bill per month in the UK was just under £34.48.

A breakdown of the highest and lowest average cost of student bills at different UK universities

Typically, students in Coventry pay the most for their utility bills each month, at an average of £64.19. This is around 15% more than those studying in Lincoln, at £54.99 per month.

At the other end of the scale, students in Portsmouth and Lancaster pay less than £10 a month for their average utility bills. They’re paying £8.99 and £5.26 per month, respectively.

How much does the average uni student spend on food in the UK?

As of 2023, the average UK university student spends £109.57 per month on groceries.

Outside of rent, student finance statistics from Natwest show that food shopping continues to be the main expenditure for UK students. Their monthly spend has increased by 44% since 2022.

A breakdown of the highest and lowest average student grocery bill per month in the UK

Students in Bournemouth have the highest average monthly spend on food of all UK universities, at £140.90 per month. This is around 5% more than those at Oxford, and 9% more than Cambridge.

In terms of the lowest average grocery bill, those studying in Leicester and York typically spend between £85 and £87 a month on their food shopping. This is almost two-thirds (65%) of what the average Bournemouth University student spends on their grocery bills each month.

A breakdown of highest and lowest average monthly spend on alcohol for UK students

Overall, average student spending per month on alcohol dropped by almost a third (29%) between 2022 and 2023.

Another fact revealed around student finances was that Liverpool students are the biggest spenders on alcohol (£52.97 a month). This is 52% more than the national average figure of £30.96.

Students in Leicester have the lowest average monthly spend on alcohol at £14.40 a month – less than a third compared to a typical Liverpool student.

A breakdown of highest and lowest average monthly spend on takeaways for UK students

In terms of average student monthly spending on takeaways, those in Glasgow have the highest typical amount at £50.50 per month. This is almost double the national average figure of £28.80 per student per month.

On the other hand, York students spend an average of £16.41 on takeaways each month – around a third of the typical Glasgow student.

UK student attitudes towards money

Data from Natwest reveals more than a third (34%) of UK students admit trying to budget while at university, but don’t always stick to it. Almost a quarter (23%) have a careful budget plan and track their finances and spending regularly.

A breakdown student attitudes towards money while at university

(Source: Natwest)

A tiny percentage (2%) of students surveyed by Natwest admit to not considering their spending while at university. An equal percentage also lack the confidence to manage their finances independently.

A breakdown of how UK students rank their stress levels when it comes to money management

(Source: Natwest)

When asked to rate their stress levels in terms of money management, more than a third (35%) of students provided a score of 6 or 7. This indicates some mild stress when it comes to managing their finances at university.

Twice as many students selected a score of 10 (maximum stress) compared to 0 (no stress), at 7% and 3%, respectively.

A breakdown of the most and least stressed students when it comes to money management at university

Around 1 in 4 (24%) UK students admit to finding money management stressful. This is particularly the case in Bournemouth (40%) and Lincoln (35%)

Overall, stress from managing money has increased by more than a quarter (28%) since 2022.

The Natwest survey also found that,

• Just 5% of students feel their university supports them with money management – with just 2% of those at Coventry stating a lack of financial support for students.
• Around 2 in 5 (40%) students felt their university does nothing to help with the student cost of living crisis.
• Bournemouth had the highest percentage (58%) who believed this to be the case – 45% more than the UK average figure.

A breakdown student attitudes towards savings while at university

In terms of how UK students save while at university, more than a quarter (28%) will transfer money into a traditional savings account. A fifth (20%) of students admit to transferring money in one-off payments on an irregular basis.

That said, around 1 in 4 (24%) UK students claim to not save anything while at university.

A breakdown of the largest and smallest average total savings per month from UK students by university

(Source: Natwest)

In 2023, the average monthly savings per student was just over £100, according to the latest student finance facts from Natwest.

Typically, students in Cambridge save the most each month (around 1.5 times the national average) and 5 times more than students in Nottingham and York.

A breakdown of the measures taken in 2023 by UK students to reduce spending during the cost of living crisis

(Source: Natwest)

In light of the cost of living crisis, UK students have made a number of changes to their spending habits in 2023, with:

• Almost half (47%) reducing their frequency of online shopping
• More than a third (35%) cutting down on nights out
• More than 1 in 4 (26%) students reducing the number of meals per day in order to save on grocery bills

Incidentally, around 1 in 10 (12%) students haven’t made any changes to their lifestyle in order to cope with the cost of living crisis.

A breakdown of the extent to which students have felt like leaving their course due to financial pressures of university

(Source: Natwest)

When surveyed by Natwest,

• Almost half (49%) of students claim that financial pressures haven’t caused them to consider leaving university early.
• Around 1 in 5 (21%) admit they have considered leaving, but will find a way to cope.
• Less than a third (29%) said they’re concerned by financial pressures while at university.

In terms of the future, 86% of students expect the cost of living crisis to rise further in the next academic year. Less than half (46%) expect a rise of up to 15% between 2023 and 2024, with a third (33%) anticipating an increase between 16% and 30% in the average student cost of living.

Student finance FAQs

How many years of student finance can you get in the UK?

Usually, student finance is only available for your first higher education course. You can have a maximum of 16 years of part-time funding. Anything over this is likely to be self-funded.

How much maintenance loan should I get?

The amount of maintenance loan you should get depends on your household income, where you’ll be studying while at university, and where you normally live. In 2023, the average maintenance loan for students was £5,820 for the year. But, this will vary depending on which part of the UK you’re from and studying in.

What’s the household income threshold for student finance in the UK?

The household income threshold for student finance in the UK varies depending on which part of the UK you’re from and where you’ll be studying. For example, students in England wishing to live at home while at uni, and from a household earning £58,291 get a minimum maintenance loan of £3,698. This figure rises to £4,651 for students living away from home, studying outside of London, with household earnings of at least £62,343.

Do parents' savings affect student finance in the UK?

Yes, in a way. The amount of money in your parents’ savings doesn’t directly affect the amount of money you’re eligible for. But, any interest earned from savings must be declared as unearned income.

Student finance classifies household income as any money you get from your own savings, investments, or property, like dividends or rent. It may also include your parent(s) or partner’s income, depending on who you live with at the time of applying. That said, all student finance applications are dealt with on a case-by-case basis.

Does working part time affect student finance in the UK?

In theory, working part-time shouldn’t affect your student finance application, providing your job isn’t your only source of income. Student finance is mainly affected by your parents’ income, where you’ll be studying in the UK, and your residential status.

How long does it take for student finance to be approved in the UK?

It can take up to 6 weeks for a student finance application to be approved. Although, the average application processing time in the UK tends to be around 3 weeks. This depends on the volume of applications at the time of sending, and whether all of your evidence is correct and in order.

What percentage of student loans are repaid?

The UK government expects that just over a quarter (27%) of full-time undergraduates starting in the 2022-23 academic year will repay their student loans in full. The prediction is this will rise to 61% for those starting their studies in 2023-24.

When is student debt written off in the UK?

When your student debt gets written off depends on which repayment plan you’re on. For example, students on Plan 1 will have debts written off 25 years after the April they were first due to repay (providing this was on or after 1 September 2006). If this was after 1 September 2006, your student loan will be written off when you turn 65 years old.

What’s the average student loan debt in the UK?

As of 2021-22, the average UK student loan debt stood at £29,545. This figure was highest in England (£45,150) and lowest in Scotland (£14,840).

How is student loan interest calculated?

Student loan interest is charged from the day you get your first student loan payment, up until your loan has been repaid in full or written off. Interest is added to your existing balance each month, and is charged at either the Retail Price Index (RPI) or BoE base rate plus 1% (whichever is lower). As of 21 July 2023, the current student loan interest rate for Plan 1 student loans stood at 6%.

Why is university so expensive?

The cost of university is more expensive in 2023 compared to previous years largely thanks to the rise in tuition fees, from £1,000 a year in 1998 to £9,250 a year. This is driven by increased running costs (i.e. wages, energy bills, cost of materials, upgrades, etc.). Rather than absorb these additional costs, universities have passed them onto the students. Secondly, the UK cost of living is higher in 2023 compared to previous years. This has had a knock-on effect for all aspects of student living, including food, accommodation, transport, and social activity costs.

Student finance glossary

Household income threshold

The amount you need to be earning in order to qualify for a maintenance loan. There’s a maximum and minimum threshold depending on which part of the UK you’ll be studying, and whether you’ll be living at home while at university.

Maintenance grant

Additional money given to students by the government that helps pay towards living costs. You can apply for a maintenance grant at the same time as a student loan through your student finance application. But, unlike a maintenance loan, you don’t need to pay this money back.

Maintenance loan

A student loan provided by the government that helps pay towards living expenses while at university. This is usually used for rent, bills, food, and nights out. You apply for the maintenance loan through the same process as the tuition fee loan. Once you start making repayments, this will be a joint sum of the two loans.

Student bursary

Money offered to a student based on their academic abilities, household income, or a mixture of both. Sometimes called a scholarship, this can help pay towards various university expenses, such as tuition fees, learning resources, and transport costs. Funding can last anywhere between 1 year and the full length of the course, and doesn’t have to be repaid (unless you leave the course early).

Tuition fee loan

Money that you apply for to help cover your tuition fees. This is paid directly to the course provider, and repayments begin after you finish the course and start earning over a given salary threshold.

Sources and methodology

https://commonslibrary.parliament.uk/research-briefings/cbp-7857/

https://www.statista.com/statistics/298902/higher-education-spending-uk/

https://researchbriefings.files.parliament.uk/documents/SN01079/SN01079.pdf

https://www.savethestudent.org/student-finance/maintenance-loans.html

https://wordsrated.com/student-loan-debt-in-the-united-kingdom/

https://www.ons.gov.uk/peoplepopulationandcommunity/educationandchildcare/bulletins/costoflivingandhighereducationstudentsengland/30januaryto13february2023

https://www.natwest.com/life-moments/students-and-graduates/student-living-index.html

https://www.gov.uk/repaying-your-student-loan

https://www.gov.uk/apply-for-student-finance

https://www.gov.uk/guidance/how-interest-is-calculated-plan-1

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