The Student Room Group

How does debt system work within Universities?

I would like to clarify for myself how exactly university loans work? A year of university tuition costs £9,250. But, if I don’t have money for education itself, I take out a loan, but only pay back when start to earn a certain amount - 25k per year. And if I don’t achieve it, then I don’t pay at all. Also, I heard that after 40 years the debt disappears.

I'm more interested in the question of living itself. I don’t want to work while studying, how can I then pay for accommodation (especially at London), food and life itself, as well as expenses for books, for example, and other supplies. Can I get a loan for this too? How it works? How to get?

And also, if I go to live in a country whose GDP is much lower, and a salary of 25k a year is considered very good, and I, for example, will earn 24k p/y, will I not pay the debt? Or will I pay the difference from the country's GDP? I simply logically attributed it to GDP, these are my thoughts. Please help me understand this issue, who knows. Thank you very much!
Original post by ppaden
I would like to clarify for myself how exactly university loans work? A year of university tuition costs £9,250. But, if I don’t have money for education itself, I take out a loan, but only pay back when start to earn a certain amount - 25k per year. And if I don’t achieve it, then I don’t pay at all. Also, I heard that after 40 years the debt disappears.

I'm more interested in the question of living itself. I don’t want to work while studying, how can I then pay for accommodation (especially at London), food and life itself, as well as expenses for books, for example, and other supplies. Can I get a loan for this too? How it works? How to get?

And also, if I go to live in a country whose GDP is much lower, and a salary of 25k a year is considered very good, and I, for example, will earn 24k p/y, will I not pay the debt? Or will I pay the difference from the country's GDP? I simply logically attributed it to GDP, these are my thoughts. Please help me understand this issue, who knows. Thank you very much!

Most students who apply for student finance receive a tuition fees loan and a maintenance loan. The tuition fees loan is paid directly to your uni by the student finance body. The maintenance loan is paid to your bank account at the start of each term to help you pay for accommodation and living expenses. To get a higher maintenance loan, you (or your parents) will need to submit details of household income.

The following article gives details of what happens to repayments if you move overseas (section 6.7). The repayment threshold is adjusted according to the cost of living in the country you move to:

https://www.gov.uk/government/publications/student-loans-a-guide-to-terms-and-conditions/student-loans-a-guide-to-terms-and-conditions-2023-to-2024#how-youll-repay

Another useful aticle you should read:

https://www.moneysavingexpert.com/students/student-loans-england-plan-5/
(edited 3 weeks ago)
Reply 2
Original post by normaw
Most students who apply for student finance receive a tuition fees loan and a maintenance loan. The tuition fees loan is paid directly to your uni by the student finance body. The maintenance loan is paid to your bank account at the start of each term to help you pay for accommodation and living expenses. To get a higher maintenance loan, you (or your parents) will need to submit details of household income.
The following article gives details of what happens to repayments if you move overseas (section 6.7). The repayment threshold is adjusted according to the cost of living in the country you move to:
https://www.gov.uk/government/publications/student-loans-a-guide-to-terms-and-conditions/student-loans-a-guide-to-terms-and-conditions-2023-to-2024#how-youll-repay
Another useful aticle you should read:
https://www.moneysavingexpert.com/students/student-loans-england-plan-5/

Thank you very much for the information. I understand that in London I would receive about 13 thousand pounds of maintenance loan. So approximately £1000 a month, will this include accommodation costs? Or is it studying, books, food, etc...?
Original post by ppaden
Thank you very much for the information. I understand that in London I would receive about 13 thousand pounds of maintenance loan. So approximately £1000 a month, will this include accommodation costs? Or is it studying, books, food, etc...?


You can spend your maintenance loan how you like, but you will need to pay for your accommodation, food, transport, socialising, etc. out of it. The amount of loan you will receive depends on your household income. Try using the following calculator:

https://www.gov.uk/student-finance-calculator
Reply 4
Original post by normaw
You can spend your maintenance loan how you like, but you will need to pay for your accommodation, food, transport, socialising, etc. out of it. The amount of loan you will receive depends on your household income. Try using the following calculator:
https://www.gov.uk/student-finance-calculator

Thank you, honestly, I don’t understand how I can survive in London on 1100 pounds a month if 1000 a month goes only to accommodation...
Original post by ppaden
Thank you, honestly, I don’t understand how I can survive in London on 1100 pounds a month if 1000 a month goes only to accommodation...


A lot of London uni students live in the city and stay living at home. Shop around for other accommocation options from private halls (Student Roost, IQ students, Unite Students, etc), be prepared to share a bathroom rather than opting for an ensuite, and find a part-time job.
Original post by ppaden
Thank you, honestly, I don’t understand how I can survive in London on 1100 pounds a month if 1000 a month goes only to accommodation...


The assumption is that your parents will contribute to the shortfall or that you'll take part time work.

Fundamentally, living in London is not cheap.

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