Who Provides Student Finance in the UK and How Does It Work?
If you’re starting university in 2026/27, you’ve probably heard a lot about student finance, but who provides it, and how does it really work?
In the UK, student finance is a government-backed system designed so that students don’t have to pay for their degree upfront. Instead of paying tuition fees directly, eligible students can apply for loans to cover both course costs and living expenses.
Here’s a clear breakdown of who provides student finance and what you need to know.
The SLC is a non-profit government organisation responsible for:
Paying tuition fees to universities
Paying maintenance loans to students
Managing student loan accounts
Collecting repayments after graduation
However, you don’t apply directly to the SLC in most cases. Applications are handled by regional student finance bodies depending on where you normally live:
Even though applications are regional, the SLC manages the actual payment and repayment process.
How Do Student Loans Work in 2026/27?
There are two main types of student support available:
Tuition Fee Loans
Covers the cost of your university tuition.
Paid directly to your university
.In 2026/27, fees may rise up to £9,790 per year in some cases.
You do not receive this money yourself.
Maintenance Loans
Helps cover living costs such as rent, food, travel and bills.
Paid directly into your bank account.
Usually paid in three instalments across the academic year.
The amount you receive depends on your household income and where you will be living during your studies.
The Role of Your Household Income
Maintenance loans are usually means-tested.
For most students under 25, the amount you receive depends on your parents’ or household income. Higher household income usually means a lower maintenance loan, as the system assumes families can contribute more.
For 2026/27, the maximum maintenance loans are expected to be approximately:
Living at home: £9,118
Living away from home (outside London): £10,830
Living away from home (London): £14,135
If your household income is above a certain threshold, you may receive less than the maximum.
How to Find Your Student Loan Provider
You must apply to the student finance body based on where you lived before starting university, not where you plan to study.
For example:
If you lived in England before university, apply through Student Finance England.
If you lived in Wales, apply through Student Finance Wales.
If you lived in Scotland, apply through SAAS
If you lived in Northern Ireland, apply through Student Finance NI.
Once your application is processed, the Student Loans Company manages your payments and account.
You’ll be given a Customer Reference Number (CRN), which you’ll use to manage your account and contact the SLC.
When and How Do You Repay Your Student Loan?
Student loans work differently from normal bank loans.
Repayments only start from the April after you graduate, and only if you earn above a set income threshold.
For example, under Plan 5 loans, repayments start when earning over around £25,000 per year (thresholds may change).
Key points:
You repay 9% of anything you earn above the threshold.
Repayments are taken automatically through PAYE if you’re employed.
If your income drops below the threshold, repayments stop.
Any remaining balance is written off after 30 years (Plan 2) or 40 years (Plan 5).
Because repayments depend on income, many people describe student loans as closer to a “graduate tax” than a traditional loan.
Final Thoughts: Secure Your Funding Early
Applying early helps ensure your tuition fees are covered and your maintenance loan is paid on time.
