Do I have to repay my student loan if I don’t finish university?

Yes, repayment rules still apply even if you leave your course early. However, you only repay once your income exceeds the threshold, and repayments stop if your earnings fall below it.

Is a student loan considered personal debt?

No. A student loan does not affect your credit score and is not treated like personal or commercial debt. Repayments are income-based and collected through the tax system.

How much student loan will I have to repay each month?

Your monthly repayment depends solely on how much you earn above the repayment threshold. It is a fixed percentage of income, not related to your total loan balance.

What happens if I move abroad?

If you move overseas, you are still required to repay your student loan. Repayment amounts are based on the cost of living and average income in the country you move to.

Can student loans be written off?

Yes. Any remaining balance is written off after a set number of years, provided you have not fully repaid it by then.

Does interest stop when I start repaying?

No. Interest continues to be added until the loan is fully repaid or written off, but it does not change how much you repay each month.

Student Loan Guide: How Student Finance England Works

Table of Contents

TL;DR

A student loan helps cover tuition fees and living costs for UK students
Student Finance England provides loans, not upfront payments
Repayments depend on income, not how much you borrowed
Loans are written off after a set number of years
You only repay when earning above the repayment threshold

Student Loan Guide: How Student Finance England Works

What Is a Student Loan in England?

A student loan is financial support provided to eligible students in England to help pay for university or higher education. Unlike commercial loans, it is issued by Student Finance England and designed to be repaid gradually based on your income after graduation.

Student loans are not paid directly to you in full. Tuition fees are sent to your university, while maintenance loans are paid to you in instalments to help with living costs.

Types of Student Loans Available

Tuition Fee Loan

This loan covers the full cost of your course fees, up to the maximum allowed. You do not need to pay anything upfront, and the money goes directly to your education provider.

Maintenance Loan

A maintenance loan helps with everyday living expenses such as rent, food, and travel. The amount you receive depends on factors like household income, where you live, and whether you study full-time or part-time.

Who Is Eligible for Student Finance England?

Eligibility for a student loan typically depends on:

Your nationality or residency status
Your course type and institution
Whether you’ve studied higher education before

Most undergraduate students studying at a recognised UK institution qualify, even if this is not their first application.

How Student Loan Repayments Work

Repayments are income-based, not debt-based. You only start repaying when your income exceeds a set threshold. Repayments are automatically deducted from your salary, similar to tax or national insurance.

If your income drops below the threshold, repayments stop. Any remaining balance is written off after a fixed period, depending on when you started your course.

Student Loan Interest Explained

Interest is added to your student loan from the time you receive it. The rate is linked to inflation and can change over time. Importantly, interest does not affect your monthly repayment amount—only your income does.

Applying for a Student Loan

Applications are completed online and usually open months before courses begin. You’ll need personal details, course information, and household income data if applying for a maintenance loan.

Applying early ensures your funding is in place before your course starts.

✍️ Author

Sara K
Higher Education Finance Writer with 9+ years of experience covering UK student funding systems, university policy, and graduate finance. Daniel specialises in simplifying complex education finance topics for students and families.

🔍 Reviewed By

Rachel Collins, MSc
Education Policy Analyst with 15+ years of experience in student funding, public finance, and regulatory compliance. Rachel focuses on accuracy, clarity, and alignment with official guidance.