Tuition loans

9

Hiiii just a quick one, as a uni applicant for 2026 I know that there is 2 types of student loans being tuition and maintenance, I'm not planning on getting a maintenance loan because of the interest involved paying it back afterwards, but is it true that tuition loans involve no interest since it is just getting paid directly to the uni themselves

Like If I apply for only tuition loan, then after uni when I'm earning enough, I'm only paying back the tuition loan and no interest because it's only a tuition loan?

Please advice, Thanks!!!!

Reply 1

Admit-One

Universities Forum Helper

21

No, you accrue interest on any loan taken out, regardless of whether the money has gone to you or your uni.

It's alluded to on this page which is about plan 2 loans, but the same is true for all of them.

https://www.gov.uk/guidance/how-interest-is-calculated-plan-2

"You’re charged interest from the day we make your first payment to you or to your university or college until your loan has been repaid in full or cancelled."

Reply 2

Daniel - UOS

Official Rep

9

Original post

by lisa786

Hiiii just a quick one, as a uni applicant for 2026 I know that there is 2 types of student loans being tuition and maintenance, I'm not planning on getting a maintenance loan because of the interest involved paying it back afterwards, but is it true that tuition loans involve no interest since it is just getting paid directly to the uni themselves
Like If I apply for only tuition loan, then after uni when I'm earning enough, I'm only paying back the tuition loan and no interest because it's only a tuition loan?
Please advice, Thanks!!!!

No, there's interest on the tuition part of the loan too. If you can afford to not need a maintenance loan, that's amazing, but personally I'd do a deep dive on what your expenses are likely to be through your degree before making a firm decision - I've known a couple of students who went that route and changed their minds very quickly, though it can be doable.
A close friend who had that option still got a maintenance loan, saved it, and used it as a house deposit when he finished uni lol

Reply 3

normaw

Volunteer Section Leader, Clearing and Applications Advisor

20

Original post

by lisa786

Hiiii just a quick one, as a uni applicant for 2026 I know that there is 2 types of student loans being tuition and maintenance, I'm not planning on getting a maintenance loan because of the interest involved paying it back afterwards, but is it true that tuition loans involve no interest since it is just getting paid directly to the uni themselves

Like If I apply for only tuition loan, then after uni when I'm earning enough, I'm only paying back the tuition loan and no interest because it's only a tuition loan?

Please advice, Thanks!!!!

Have a read through the following article. You will be on a plan 5 loan for both a tuition fee loan and/or a maintenance loan.

https://www.moneysavingexpert.com/students/student-loans-england-plan-5/

Reply 4

lisa786

OP

9

Thanks, by the way does anyone know then how will the alternative loan work then as I know that it is only for courses for Jan 2027 onwards but if I start uni in September 2026 would I be already rolled on the alternative loan when it comes out? Or would I have to reapply or change the loan during my course year? If I'm able to switch from the normal student loan to the alternative one would I be owed interest during that period then? Also can someone explain how student loans are changing in 2027 as a LSA, would that affect us reapplying for loan in 2027 after a year in uni in September 2026 and how so? 🙂

Reply 5

normaw

Volunteer Section Leader, Clearing and Applications Advisor

20

Original post

by lisa786

Thanks, by the way does anyone know then how will the alternative loan work then as I know that it is only for courses for Jan 2027 onwards but if I start uni in September 2026 would I be already rolled on the alternative loan when it comes out? Or would I have to reapply or change the loan during my course year? If I'm able to switch from the normal student loan to the alternative one would I be owed interest during that period then? Also can someone explain how student loans are changing in 2027 as a LSA, would that affect us reapplying for loan in 2027 after a year in uni in September 2026 and how so? 🙂

Don't hold out hope of the alternative student finance scheme being rolled out anytime soon - it has been put back many times. The details of the Lifelong Learning Entitlement haven't been finalised either. Assume that you will be on the plan 5 student loan for the duration of your course for now.

Tuition loans

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