Maintenance loans and tuition fees in England are changing in
line with inflation to help ensure the financial stability of the
university sector. But what does this mean for students and
universities?
Why has this decision been made?
We recognise that students have been feeling the pinch of the
cost of living. Because of this, we have decided to raise
maintenance loans – the loan that helps you with your living
expenses as a full-time student.
The 3.1% rise will provide as much as £414 extra per year to help
students from the lowest income families.
We have also made the decision to increase maximum tuition fee
limits to help universities cover the cost of providing
education. Fees have not been increased in seven years, which
means they have not kept in line with inflation. Maximum fees for
standard full-time courses will rise by 3.1% to
£9,535.
After leaving study, those who have taken out a student loan will
not see their monthly student loan repayments increase because of
these changes. Repayments do not start until a graduate reaches
the earnings threshold either.
How much will this go up in
pounds?
Both the maintenance loan and maximum tuition fees universities
can charge will rise by 3.1%, in line with
inflation.
For student tuition fees this
means:
The maximum cap for full-time student fees will go up by £285
making the yearly maximum fee limit cost £9,535.
The maximum cap for part-time student fees will go up by £210
making the yearly maximum fee limit cost £7,145.
The maximum cap for accelerated student fees will go up by £340
making the yearly maximum fee limit cost £11,440
The maximum maintenance loan will be uplifted
by:
£267 for students living at home, making the maintenance loan
£8,877 yearly.
£414 for students living away from home and studying in
London, making the maintenance loan £13,762 yearly.
£317 for students living away from home and studying outside
London , making the maintenance loan £10,544 yearly.
£363 for students studying overseas as part of a UK course,
making the maintenance loan £12,076 yearly.
I've already started my course – will these changes
affect me?
From the 2025/26 academic year the new maximum tuition fee
and maintenance loan rates will apply to new students and those
who are continuing their studies.
If you are confused about an offer that has already been made for
the 2025/2026 academic year, get in touch with your higher
education provider.
Will you be putting fees up again next
year?
Longer-term funding plans for the higher education sector will be
set out in due course.
What will this mean for repaying my student
loan?
After finishing university, those who have taken out a student
loan will not see their monthly student loan repayments increase
because of these changes.
For a student loan, the amount you repay each month, if
you're paid monthly, depends on how much you earn over the
repayment threshold. So, the more you earn, the more you repay.
If your earnings fall below the threshold, you're not required to
pay back anything.
Unlike commercial loans, if you have not repaid your student loan
after 40 years, the amount you still owe is automatically
cancelled, regardless of how much it is.
What does this mean for universities?
The fee increase will provide a boost of funding to the sector,
helping higher education providers handle their financial
challenges.
In return for this investment, we are also calling on
universities to do their bit to support disadvantaged students,
use their money responsibly, and focus on their core mission of
providing world-class education. More on how we're reforming
higher education will come in the next few months.
Universities have been asked to consider the following moving
forward:
Widen access to university: Universities are
being asked to do more to help disadvantaged students reach
university and achieve their potential when they get there.
Flexible Learning Options: Universities are
being asked to offer more flexible study options and various
course types. This flexibility should allow more people to study
for a degree. They are also encouraged to help more students move
from further education to university.
Improving efficiency: Universities should be
focused on delivering the very best value for students. We want
to make sure they are transparent on how they are spending money,
looking at their business models, and cutting out any wasteful
spending. We also expect to see better collaboration across the
sector, working together to improve efficiency.
