Student finance has changed significantly in recent years, so even if you’ve supported an older child through the process, don’t assume the rules are the same. While it’s easy to get swept up in choosing accommodation, revising (hopefully) for forthcoming exams and buying saucepans, the vital task of working out how the funding will actually work is often left until late in the proceedings.
Although technically you can still apply for funding up to 9 months after the first day of the academic year for your course, no one wants to commit to the cost of going to university without fully understanding what it will cost you now and your child in the future.
This guide brings you fully up to date for students starting university in 2026/27.
How to plan for student fees
Trying to calculate the total cost of a degree is a fast track to overwhelm. Instead, focus on:
- The support your child can get
- How the system works
- What you may need to contribute
- How repayments actually work
And a mindset shift helps: student loans operate more like a graduate tax than traditional debt. What your child borrows and what they repay are often very different numbers.
The student finance package
There are two main components:
- Tuition Fee Loan
- Maintenance Support (loan + grants depending on the UK nation)
1. Tuition fees
The government has confirmed that tuition fees in England will increase again for 2026/27.
England & Wales
- £9,790 per year (up from £9,535 in 2025/26)
This is the second increase since 2017.
Scotland
- Scottish students studying in Scotland do not pay tuition fees.
- Students from the rest of the UK pay up to £9,250.
Northern Ireland
- NI students studying in NI pay up to £4,855.
Tuition fee loans cover the full amount and are paid directly to the university.
2. Maintenance support
Living costs are the biggest financial challenge for most students. The government has confirmed a 2.71% increase to maintenance loan maximums for 2026/27.
Maintenance support in England 2026/27
Maximum loan amounts:
- £9,118 living at home
- £10,830 living away from home (outside London)
- £14,135 living away from home in London
- £12,403 studying overseas as part of a UK course
Minimum loan amounts (for higher‑income households) also increased slightly.
Minimum loan amounts:
- £4,013 living at home
- £5,048 living away from home (outside London)
- £7.039 living away from home in London
- £5,996 studying overseas as part of a UK course
Household income thresholds
The minimum loan amounts above apply when household incomes are roughly £70,000+, depending on the living situation. Lower‑income households (up to £25,000) receive the maximum support.
Students eligible for benefits
Students who are lone parents or have certain disabilities qualify for higher maintenance loan rates.
Maintenance support in Scotland, Wales & Northern Ireland 2026/27
Scotland
Students receive a mix of loans and grants. Maximum support remains £9,000.
Northern Ireland
Maximum support for 2026/27:
- £6,610 living at home
- £8,136 living away (outside London)
- £10,852 living away in London
Wales
Wales continues to offer the most generous system:
- Every student receives the same total amount of support.
- Household income determines the split between the loan and the non‑repayable grant.
- No parental contribution is expected.
Divorced or separated parents: Whose income counts?
Only one household is assessed.
Your child selects the parent they live with most. If time is split equally, they may choose, usually the lower‑income parent, which increases their loan entitlement.
A new partner living in that household is included in the assessment of household income.
Repaying Student Loans
Repayment depends on the loan plan, which is determined by when the student started their course.
Plan 2 (students who started 2012–2023)
- Repay 9% of income above £29,385
- Written off after 30 years
- Interest: capped at 6% for 2026/27
Plan 5 (students who started in 2023 onwards)
- Repay 9% of income above £25,000 (frozen until 2027)
- Written off after 40 years
- Interest: RPI only (no additional %)
Repayments are based on gross income, not take‑home pay.
Coming Soon – The Lifelong Learning Entitlement (LLE)
A major change is on the horizon:
- From January 2027, the LLE replaces the traditional undergraduate loan system for new starters.
- Students will receive a £37,000+ funding pot to use flexibly across modules and courses throughout their life.
Students starting in September 2026 will still use the current system, not the LLE.
We will update you nearer the time of the new system, but in the meantime, here are the details we know currently.
Bursaries & Hardship Funds
Yes, they still exist, and many are underused.
Universities offer:
- Income‑based bursaries
- Academic excellence awards
- Hardship funds for unexpected financial difficulty
Some are wonderfully niche. from grants for vegetarians to scholarships for students with the surname Graham.
Always check the university’s own funding pages too.
Support for students with disabilities (DSA)
Disabled Students’ Allowances (DSA) cover:
- Specialist equipment
- Software
- Non‑medical helpers
- Travel costs
- Study support
Key points:
- Not means‑tested
- Not repayable
- Based on assessed need
- Apply early (processing takes around 14 weeks)
If you have a student with a learning difficulty, health problem, or disability, go to the government website for Disabled Students Allowance >
EU Students
The rules remain:
- EU students with settled or pre‑settled status may access full support.
- Others can usually apply only for tuition fee loans.
Final Thoughts
Funding a university can feel overwhelming, but it doesn’t have to be. With early planning, realistic expectations, and a clear understanding of the updated system, most families find a workable path.
Avoid relying on political promises or hoping the system will change; plan based on what’s available now.
By now, you should have a clearer picture of how student finance works, but naturally, this could raise further questions. For example:
- Could you fully support your child through university, and should you?
- Would it be better to use savings and investments rather than Student finance?
- How might either approach impact your retirement planning or other financial goals?
- Would it be wiser to save your capital to help your child get on the property ladder after university?
University funding can have a domino effect across your finances and needs careful thought. It’s important to consider the bigger picture before committing to a particular approach.
Your Legal & Medical Adviser is here to help look at all options and find the best route for you and your family.
This article should not be interpreted as specific advice. As always, we would urge you to contact one of our specialist advisers, who will look at your own circumstances and how this will impact your financial plans.
Are you financially ready for your student to start university? Let us know by adding a comment below
Editor’s note: This post was originally published in June 2023 and has been completely revamped and updated for accuracy and comprehensiveness in May 2026.
Thanks Kirsty for the very clear explanation. We’ll be applying for a student loan for our daughter to attend university in the autumn of next year.
Glad to hear it, Nick! Good luck at university to your daughter.
Well explained and very helpful information. As an international graduate myself, coming from a background where parents are generally expected to support their children through to at least their first degree, it was refreshing to have this broken down in such simple and easy-to-understand terms. My children are still a few years away from university, so this has given me plenty of time and valuable insight to start planning ahead properly. Thanks
Good to hear! Good luck to your children at university.