Tuition fee loans vs maintenance loans
If you’re thinking about applying to university in the UK, you’ve probably heard of tuition fee loans and maintenance loans. But you might not understand how they compare just yet, or whether you need them.
This guide to tuition fees vs maintenance loans in the UK can help. In this post, we’ll cover everything from the the differences between tuition fees and maintenance loans to how much you might get, and what they’re used for.
Let’s begin.
Tuition fee loans vs maintenance loans: what’s the difference?
The main difference between tuition loans and maintenance loans is what they are used to pay for. Tuition fee loans cover the cost of the academic program you choose to study, while maintenance loans are designed to cover living costs such as accommodation, food, and other day-to-day expenses.
Another important difference between the two loans is who actually receives the money. The tuition loan you receive is paid directly to the university to pay for your education. However, your maintenance loan lands in your bank account, ready for you to pay out for your daily expenses like rent, bills, food and textbooks, for example.
Who issues tuition and maintenance loans?
Both types of loans are managed by the Student Loans Company, better known as ‘Student finance’. The Student Loans Company is a government-owned organisation that issues the loans and grants to students throughout the UK. It’s sponsored by the Department for Education.
It’s estimated that the Student Loans Company provides loans and grants to over two million students each year. How much they provide will depend on a variety of things, as we’ll cover in a minute. First, let’s explore both types of student loan in more detail.
What is a tuition fee loan in the UK?
A tuition fee loan is a loan that pays for the fees charged by your university for your course.
How much you pay (and are loaned) will depend on how much your university charges each year for your particular course, when you started your course, and which type of college you’re at. It might also vary depending on whether your course is full-time or part-time.
Usually, the tuition fee loan is paid directly to your university in three instalments - one for each term.
What does a tuition fee loan cover?
A tuition fee loan covers the cost of tuition for your course and university. More specifically, this fee usually covers the cost of things like:
The actual teaching (lectures, seminars, workshops)
Student union membership
The various support services available to students
Access to communal spaces like libraries
Some equipment for your course (depending on the course)
But it doesn’t cover the costs associated with living at university more broadly, like rent, laptops, textbooks and travel costs. That’s what a maintenance loan is for.
What is a maintenance loan?
A maintenance loan is a loan designed to help students afford the cost of living at university. It’s used to cover the costs of everything from rent to energy bills, food shopping, travel expenses and resources like textbooks and laptops.
At the time we’re writing this, the maximum maintenance loan is £13,022. However, according to Save The Student, the average maintenance loan is actually £5,820.
How much you get will vary depending on a lot of things:
What university or college you go to
Whether you’ve studied before (or not)
Whether you live with your parents
Whether you live in London
Whether you study abroad for a year
How long your course lasts each year
Whether you’re a full time student
How old you are
Your nationality and residency
Your household income
The only way to know exactly what you’re entitled to is to actually apply.
Want to find out roughly how much you might receive as your maintenance loan? Use the official student loan calculator.
Do you have to pay student loans back?
Tuition and maintenance loans are just that - loans. This means that you will be expected to make repayments. But don’t let this put you off the idea of going to university.
These payments are fairly manageable and you’ll only be expected to make repayments when you earn a certain amount of money.
The threshold for earnings will vary depending on what repayment plan you’re on, and it’ll usually be calculated and taken from your paycheck for you by default.
It’s also important to note that your repayments are based on how much you earn, not how much you’ve borrowed.
This is important because it means that students from low-income families that need to borrow the maximum loan can repay based on their earnings post-graduation, not how much help they needed during their studies. They will naturally have more to pay back over time, though.
How to apply for student loans in the uk
If you want to apply for tuition and maintenance loans, you will need to create an account and application on the student finance england website (shown below).
As part of the process, you’ll be asked to provide information about your financial and employment status and that of your parents / guardians (if applicable).
It’s worth setting aside some time to go through this in detail and make sure the information you’re putting in is accurate as it can delay your application if anything doesn’t check out.
The deadline for applying for student finance is usually between May and June, depending on whether you are a new or returning student.
It’s important to remember that you have to apply for student finance every year that you’re at university - not just before you begin your course.
What if the maintenance loan doesn’t cover living costs?
Since maintenance loans are quite low, students are expected to live frugally when at university. This just means finding ways to keep costs low and be sensible with the spending.
But it isn’t always possible to cut costs further, especially with the cost of living crisis impacting up to 81% of students in 2023.
If you find yourself in this boat, it’s worth searching for a student hardship fund, or reaching out to the team at your university for financial support.
It’s important to remember that you’re not alone. There are lots of ways that your university can support you, and you can even look into the support available before choosing your university.
Frequently asked questions
Still not 100% clear on what the differences between tuition fee loans and maintenance loans are? Well, here are some more answers to a few of the most commonly asked questions.
Can you get a tuition fee loan and a maintenance loan?
Yes. It’s possible and common for individuals to get both a tuition fee loan and a maintenance loan.
Is everyone entitled to a tuition fee loan?
Most people are entitled to a tuition fee loan for their first degree. However, there are some exceptions. You can find out more specific information about who qualifies for student finance (e.g tuition fee loans and maintenance loans) here.
Which loan pays for student accommodation?
Students typically use their maintenance loan to pay off part of their accommodation costs.
However, it’s worth noting that your maintenance loan won’t always cover the cost of your accommodation, depending on how much you receive and where you choose to live. It’s important to find out how much you will receive from before you commit to certain accommodation.
What is the tuition fee for universities in the UK?
In England, Scotland and Wales, tuition fees will cost up to £9,250 each year (in 2023/24). Although, some tuition fees will be lower for certain courses. You can find out the exact fee for the university and course you want to do when you search for courses.
Can I pay my tuition fees in instalments in the UK?
Tuition fees and tuition fee loans are paid in instalments in the UK. The Student Loan Company pays the annual fee to the university in three separate instalments.
Are tuition fee loans interest free?
No. Tuition fee loans are not interest free. Maintenance loans aren’t interest free either. You can find out the full details about the interest rates in Martin Lewis’ guide.
