Student Loans for the UK 2026: Full Guide

If you qualify as a "home" student, UK Student Finance covers your full tuition (up to £9,790 in 2026/27) plus a maintenance loan worth up to £15,285 a year in London. You repay nothing until you earn over £25,000, then 9% of income above that line. If you are an international student, the government scheme is closed to you — but private lenders like Prodigy Finance and Lendwise will fund £100,000+ with no cosigner. This guide shows exactly who gets which loan, what it costs, and how to apply.

Money is the single biggest reason people drop a UK offer. It does not have to be. The rules sound complicated because two completely separate systems exist side by side: a generous government scheme for residents, and a small set of private lenders for everyone else. Once you know which side you fall on, the path is short.

The two systems: which one is yours?

Everything depends on your residency status, not your nationality. Sort yourself into one of these buckets first.

Home students: UK government Student Finance

The Student Loans Company (SLC), through Student Finance England, Wales, Scotland, or Northern Ireland, lends to "home" students. To qualify in England for 2026/27 you generally need to have been ordinarily resident in the UK for the three years before your course starts, and hold settled status (or a recognised equivalent). Irish citizens and people with settled or pre-settled status under the EU Settlement Scheme who meet the three-year residency rule usually qualify too.

This is the cheapest money you will ever borrow. Two loans come together:

• Tuition Fee Loan — pays your university directly, up to £9,790 for 2026/27 (the first fee rise since 2017). You never see this cash; it covers the bill.
• Maintenance Loan — paid into your bank account in three instalments for living costs. The amount depends on where you study and your household income.

Maximum maintenance loans for 2026/27, full-time undergraduates from the lowest-income households:

Living situation	Max maintenance loan 2026/27
Living away from home, in London	£15,285
Living away from home, outside London	£10,544
Living at home with parents	£8,877
Studying abroad as part of a UK course	£12,074

The catch: the loan is means-tested. Roughly, for every £1,000 of household income above £25,000, your maintenance loan drops by about £210. Students from high-income households (above £62,343) get the minimum — around £4,909 outside London, £6,853 in London, £3,872 living at home. Parents are expected to top up the gap. That assumption surprises a lot of families, so plan for it early.

International students: private lenders only

Most non-UK students are not eligible for SLC funding. The government scheme will not fund a student from India, Nigeria, the US, or anywhere outside the residency rules above. Your route is a private education loan, a scholarship, or a bank loan in your home country. We cover the private lenders in detail below.

How home-student repayment actually works (Plan 5 and Plan 2)

This is the part that makes UK government loans unlike any private debt. You repay through the tax system, as a percentage of income — not a fixed monthly bill. Miss a payment because you lost your job? You simply pay nothing that month.

Which "plan" you are on depends on when you started:

• Plan 5 — anyone starting an undergraduate course on or after 1 August 2023 (so all new 2026 starters). Repayment threshold: £25,000 a year. You repay 9% of everything above it.
• Plan 2 — students who started between 2012 and July 2023. Threshold: £29,385, frozen until 2030. Also 9% over the line.

A worked example: on Plan 5 earning £31,000, you are £6,000 over the £25,000 threshold. 9% of £6,000 is £540 a year — about £45 a month, taken automatically from your salary. Earn £25,000 or less and you pay nothing at all.

Interest differs by plan. Plan 5 interest is capped at RPI only (3.2% for the year to August 2026), which keeps the balance from ballooning. Plan 2 is RPI plus up to 3%, though a 6% cap applies from 1 September 2026. The crucial detail: any balance still outstanding 40 years after you become eligible to repay (Plan 5) is written off. Many graduates never clear the full amount, and that is by design — it behaves more like a graduate tax than a traditional loan.

Private loans for international students: the real options

A handful of specialist lenders fund international students at UK universities without a cosigner or collateral. They underwrite on your future earning potential — your university, course, and career prospects — rather than a parent's credit. These are the names that genuinely lend for UK study. Do not be tempted by lenders you cannot find on the FCA register.

Lender / scheme	Who it is for	Typical APR	Cosigner?
UK Student Finance (SLC)	Home / settled / eligible EU students	RPI only (Plan 5, ~3.2%)	No
Prodigy Finance	International postgrads (Master's/MBA) at top schools	~11–15% (variable, base rate + margin)	No
Lendwise	International & UK postgrads studying in the UK	Fixed, set per applicant; terms to 10 years	No
Future Finance	Mostly home/EU students at UK universities	Fixed, risk-based per applicant	Sometimes (guarantor option)
MPOWER Financing	International students — US & Canada only	~13–16% APR	No

One important correction you will rarely see stated clearly: MPOWER does not fund UK study — it lends only for the US and Canada. People recommend it constantly for the UK; ignore that advice. For the UK, your realistic no-cosigner choices are Prodigy and Lendwise, with Future Finance covering many home/EU borrowers.

Prodigy Finance

Prodigy specialises in international postgraduate students — Master's, MBA, and similar — at a defined list of top universities. No cosigner, no collateral. Loans can reach roughly USD 220,000. Rates are variable (a base rate plus a fixed margin), and the representative figures sit around 11–15% APR depending on your profile. That is expensive next to a government loan, but it is often the only route for a non-EU student, and the application is fast and fully online.

Lendwise

Lendwise is a UK-based lender focused on postgraduate study in the UK. It offers loans up to around £100,000 with no cosigner or collateral and repayment terms up to 10 years. Rates are fixed and set per applicant, so you know your monthly payment from day one — useful for budgeting in a foreign currency.

Future Finance

Future Finance lends mainly to home and EU students at UK universities, including some who fall through the gaps of the SLC system or need more than the maintenance loan provides. Rates are fixed and risk-based; a guarantor can lower your rate but is not always required. Check eligibility carefully — it is not primarily a non-EU international lender.

Eligibility checklist before you apply

Run through this honestly. It tells you which loan to pursue.

• For SLC (home) loans: three years' ordinary UK residence before the course, settled or eligible status, a course at a recognised provider, and (for full maintenance) a household income assessment with parental details.
• For private loans: an offer (often unconditional) from an eligible university, a qualifying course (frequently postgraduate), and a profile the lender will underwrite. Prodigy and Lendwise lean toward Master's and MBA students at strong institutions.
• Visa note: a private loan can help you meet the financial requirement for a Student visa, but check current Home Office rules — loan funds must usually be available to you in the right form and window.

How to apply, step by step

Home students (Student Finance England)

1. Apply online at the GOV.UK Student Finance portal as soon as it opens — usually spring before your September start. You do not need a confirmed university place to apply.
2. Provide identity and residency evidence and, for means-tested maintenance, your household income details. Your parents complete their part separately.
3. Receive your entitlement letter confirming tuition and maintenance amounts. Tuition goes straight to the university; maintenance lands in your account in three termly instalments.
4. Re-apply each year — it is not automatic.

International students (private lender)

1. Get a rate quote on the lender's site. A soft check shows your likely APR without hurting your credit.
2. Submit documents — admission letter, passport, proof of address, and academic records.
3. Accept the offer and confirm disbursement. Many lenders pay tuition to the university and release living costs to you.
4. Mind the fees — some lenders charge an origination fee (a percentage added to the loan), and currency movements affect what you repay. Read the full cost, not just the headline rate.

Alternatives worth chasing before you borrow

Debt should be the last layer, not the first. Stack these first:

• University scholarships and bursaries — Chevening, Commonwealth, and dozens of institution-specific awards cut your bill before any loan. Many internationals overlook department-level funding.
• Home-country government loans — several countries offer subsidised education loans for study abroad, often far cheaper than Prodigy.
• Part-time work — Student visa holders can usually work up to 20 hours a week in term time, which covers a real chunk of living costs.
• Postgraduate Master's Loan — eligible home students can borrow a government Master's loan (a flat sum, not tuition-linked) for postgraduate study.

To size the gap accurately, model your tuition, rent, and living costs first. Our cost of study calculator gives you a city-by-city number, and the UK costs and funding guide breaks down what a year actually costs. For the bigger picture across destinations, see our guide to student loans abroad. And if you are still deciding, the full study in the UK hub walks through universities, visas, and applications.

Frequently asked questions

Can international students get a UK government student loan?

Generally no. The Student Loans Company funds home students and certain settled or pre-settled EU residents who meet the three-year UK residency rule. Most non-UK international students must use a private lender such as Prodigy Finance or Lendwise instead.

What is the repayment threshold for UK student loans in 2026?

Plan 5 borrowers (anyone starting from August 2023, including 2026 starters) begin repaying once they earn over £25,000 a year, at 9% of income above that. Plan 2 borrowers repay over £29,385, frozen until 2030.

How much can I borrow for living costs?

For 2026/27, the maximum maintenance loan is £15,285 in London, £10,544 outside London, and £8,877 living at home — but these are means-tested against household income, so most students receive less.

Do private international student loans require a cosigner?

Not the specialist lenders. Prodigy Finance and Lendwise lend to international students with no cosigner and no collateral, underwriting on your future earning potential rather than a guarantor's credit.

What APR should I expect on a private UK student loan?

Expect roughly 11–15% APR with Prodigy Finance, depending on your profile. Lendwise and Future Finance offer fixed rates set per applicant. Always read origination fees and currency terms, not just the headline rate.

Does MPOWER fund study in the UK?

No. Despite frequent recommendations, MPOWER Financing lends only for the US and Canada. For the UK, use Prodigy or Lendwise instead.

When is a UK student loan written off?

For Plan 5 (2026 starters), any remaining balance is written off 40 years after you become eligible to repay. Many graduates never repay the full amount, so the loan behaves more like a graduate tax.

Will a private loan help with my Student visa?

It can. A private loan can count toward the financial evidence for a Student visa, but the funds usually must be available to you in a specific form and timeframe. Check current Home Office rules before relying on it.