A Parent’s Guide
If you're a parent or guardian supporting your young person through the transition to university, you've probably heard a lot about student finance. As someone who’s just been through it myself, I know how overwhelming it can feel at first. But don’t worry - it’s more straightforward than it seems once you break it down.
This blog is here to help you understand the costs involved, how student finance works for new undergraduate students, when to apply, and a few top tips so you can plan with confidence.
Student finance
Understanding what help is available is just as important as knowing what things cost.
Tuition Fee and Maintenance Loans
There are the two main types of loans for undergraduate students:
- Tuition Fee Loan: This covers the cost of university tuition fees (up to £9,535 for 2025/26). They are paid directly to the university, so you don’t need to worry about paying fees upfront. Household income does not impact the maximum loan amount available to a student.
- Maintenance Loan: Helps with living costs and any study-related expenses not covered by tuition fees. The loan amount available depends on household income, where the student lives during term time, and whether they’re studying in or outside London. Paid directly into the student’s bank account in three instalments each academic year – typically September, January and April.
Top tip: Use the calculator on the GOV.UK website to estimate how much your young person could receive. The site also lists maximum amounts for new full-time students.
Both loans are repayable, but only once the student has graduated and is earning over a certain threshold. Find out more about loan repayments on the GOV.UK website.
Who’s who in student finance?
- Student Finance England (SFE): the service students apply through for loans and grants if they live in England.
- Student Loans Company (SLC): the government-owned organisation that manages loan account and repayments after graduation.
Top tip: Think of SFE as the shopfront and SLC as the bank behind the scenes.
Applying for Funding
Your young person will need to set up an account through the Student Finance England (SFE) portal and complete an online application.
If you are residents of Scotland, Wales, Northern Ireland or the Crown Dependencies, you will need to follow a different process. Check out:
Basic Eligibility Criteria
To qualify for undergraduate student finance, your young person must:
- Be a UK national or have settled status.
- Be studying a qualifying course at an approved university or college.
- Usually be undertaking their first higher education qualification
- There’s no upper age limit for tuition loans, but maintenance loans do have age restrictions.
When to Apply
Applications usually open in March each year. Key dates to be aware of:
- May: Deadline for new students to apply and guarantee funding is in place for the start of the course.
- June: Deadline for continuing students to reapply.
- Late applications: You can still apply up to nine months after the course starts, but this may delay payments.
Repaying the Student Loan
Repayment only begins once your young person has finished their course and is earning above a certain income threshold. This means they won’t need to worry about repayments while studying or if their income is below the threshold after graduating.
How it works:
- Repayments are income-based, not loan-based. What your young person repays depends on how much they earn; not how much they borrowed.
- For Plan 5 loans (used for students starting from 2023 onwards), repayments begin once earnings exceed £25,000 a year (before tax).
- They’ll repay 9% of income above the threshold. For example, if they earn £28,000, they’ll repay £270 that year — which works out as around £22.50 per month.
- Repayments are automatic and deducted from their salary through PAYE, just like tax and National Insurance.
- If they’re self-employed, repayments are made through the tax return process.
Interest and Loan Duration:
- Interest is added to the loan while studying and after graduation, but it’s capped and linked to inflation.
- Any remaining loan balance is written off after 40 years, even if it hasn’t been fully repaid.
Top tip: Repayments stop automatically if income drops below the threshold — for example, during career breaks or part-time work.
Top Tips from a Parent Who’s Been There
- Use GOV.UK as your go-to guide
It has step-by-step guidance, calculators, and updates on what’s available and how to apply.
- Apply early - even if your young person hasn’t chosen a university yet
You can nominate a university or course to get the process started – it doesn’t have to be their final choice. If your young person changes their mind, they can update their SFE account later, ideally as soon as they’ve confirmed where they are going. Just be aware though, this may affect the loan amount (e.g. different tuition fees or living arrangements). Early application means less stress and ensures funding is ready when term begins.
Loans won’t be released until the university confirms student enrolment. So, when those enrolment links arrive — usually in late August or early September — don’t delay. Encourage your young person to complete enrolment as soon as possible to avoid any funding hiccups.
Student finance isn’t automatic. Your young person must reapply each academic year. Circumstances change, and SFE relies on students to confirm they still want the funding. Set a reminder to reapply early each spring to keep everything running smoothly.
Final Thoughts
University is a big investment – but with the right planning and timely action, it’s manageable. Encourage your young person to apply early, stay on top of enrolment, and reapply each year. And don’t forget to explore additional funding options - they can make a real difference.
If you’re still unsure, Coventry University’s student finance team is incredibly helpful. Reach out to them or visit the GOV.UK website for more information.
