Year 12 and 13 - What is Student Finance?

Hiya!

This discussion post is about how to apply for Student Finance England (SFE) as a UK home student for an undergraduate course in England.

Sooo....

What is Student Finance England (SFE) ? :question:

Student Finance England is a government service that provides financial support for students attending university or higher education. The main aim is to cover tuition fees and living expenses, so you can focus on your studies without the stress of how to finance your education (although, let's be honest, this is still a concern for most of us students) :afraid:

What does SFE cover?

There are two main types of loans available:

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Tuition Fee Loan: This covers the cost of your university course fees, which are usually around £9,250 per year for home UK students. You won’t directly handle this money—it goes straight to the university.

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Maintenance Loan: This helps with living costs such as rent, groceries, and travel expenses. The amount you receive depends on your household income (parents’ or guardians’ earnings) and whether you’ll be living at home or elsewhere

How do you apply?

Applications are completed online, :cyber:

usually during Year 13 (your last year of sixth form or college). You will need:

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Your National Insurance Number

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Information about your household income (parents’ or guardians’ earnings)

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University course details (you can still apply even if you're unsure of the exact course)

It's essential to APPLY EARLY , even if you’re undecided on which university to attend, to ensure your funding is ready when your course begins.

Do I need to pay it back?

Yes :sadnod:

, since this is a loan, it needs to be repaid—but only after you’ve graduated :smartass:

and start earning over a certain amount. The repayment works as follows:

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Repayments begin when your income exceeds the amount (currently around £27,295 per year, though this might change).

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You’ll only repay 9% of anything you earn above the threshold.

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If your income falls below the amount, repayments pause.

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Any remaining debt is written off after 30-40 years, depending on the repayment plan (which is subject to change).

Is there any interest?

Yes :sadnod:

, interest is added to your loan from the moment you borrow the money. While you’re studying, the interest rate is slightly higher, but once you graduate, :smartass:

it’s linked to your income.

Is it worth it?

This really depends on individual views, but here are some important points to consider:

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Student loans aren’t like normal loans—you only repay if you can afford to, and it doesn’t impact your credit score.

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It's often viewed more like a tax than a traditional debt.

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Statistically, going to university can boost your future earning potential and open up more career opportunities that might not be available without a degree. :smartass:

Extra Support

You may be entitled to additional financial support depending on your circumstances. This could apply if you but also not limited to:

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Have children or care for adults

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Are from a low-income household

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Have a disability

What are Scholarships and Grants?

Scholarships and Grants are additional funds that don’t need to be repaid unlike a loan. These may be available through your university, local charities, or other organisations. It's always worth researching what you may be eligible for, as every bit of extra support can help.

Useful links

Here is the Government and UCAS website which I found super helpful and for any further information

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

https://www.ucas.com/sfe

I hope this has been helpful! If you have any further questions, feel free to ask here or through our Ambassador Platform

-Maddie, Third year Health and Well-being in Society student at De Montfort University

Reply 1

normaw

Volunteer Team, Clearing and Applications Advisor

Plan 5 student loans were introduced in August 2023 so the following terms will apply:

- the repayment threshold has been reduced to £25,000
- the repayment term is 40 years
- the interest rate is set at the retail price index (RPI)