Is your son or daughter off to Uni? What it means for their finances . . . & yours!

So you’ve survived Results Day, and now your son or daughter is about to head off to Uni. There is so much to do to help them get ready for this big adventure, and it’s also an emotional time for the whole family. But, amongst everything else, there is also the financial side to consider.

Many parents feel totally ignorant about the whole topic of university finance, and it can all seem very intimidating. So in this article we aim to explain: 

• How much it costs for a student to go to university in 2025;
• Who is responsible for paying what;
• What additional financial help may be available;
• How and when student loans need to be repaid.

How much does it cost for a student to go to university in 2025?

The cost of university is split into two main elements:

• Tuition Fees

Tuition fees cover the course and study facilities, including lectures, seminars, and tutorials, essential field trips, course admin costs, facilities and equipment, campus libraries and computer rooms, support services for students, student union membership and the final graduation ceremony.

Tuition fees are rising from September 2025 to a maximum of £9,535 per year (from a previous maximum of £9,250 per year).

• Living Costs

As well as the tuition fees, your son or daughter will also need money for accommodation, food, books, travel and other day to day living costs. The main expense will be for accommodation. Student rents have risen sharply in recent years, with annual rents in large cities typically now around £8-£9,000. Costs are higher in London, where the average rent for purpose-built student accommodation is likely to be over £13,000.

Who is responsible for paying what?

A quick look at the above figures shows that it is likely to cost at least £18,000 per year for your son or daughter to go to Uni, just for tuition fees and accommodation.

But who has to pay this money?

There are two types of student loans available from the government to help with this. Loans are managed by The Student Loans Company – SLC. The two types of loans are:

• Tuition Fee Loans

Tuition Fee Loans cover the full cost of the tuition fees for each year of university. The money is paid directly to the university.

• Maintenance Loans

Maintenance Loans exist to help cover the cost of accommodation and other living costs. They need to be applied for separately from Tuition Fee Loans. The money is paid directly into your son or daughter’s bank account at the beginning of each term. 

The amount of Maintenance Loan given depends on various factors, including household income, the location of the university, whether your son or daughter lives at home, and the length of the course. 

The maximum Maintenance Loan for students from England living away from their parents is £10,544 per year if they study outside London and £13,762 per year if they study in London. The maximum loan can only be given if your household income is £25,000 or less : the average Maintenance Loan is currently just over £7000 per year.

Many students find that the Maintenance Loan is not enough to live on, so may need to supplement their finances by working at the same time as studying. You may need to help them to do this, perhaps by suggesting possible options or providing practical help in applying for jobs and presenting themselves well at interviews. Bear in mind that if they are struggling financially, and don’t find work, they are likely either to end up deep in debt, or will be looking to you to fill the gaps for them.

What additional financial help may be available?

Additional financial help may be available over and above the regular Maintenance Loan. For example if your son or daughter is on a low income, is disabled or needs help with childcare costs, or if they are studying a certain course, like nursing or social work.

If they are on a low income it may be possible to apply for Universal Credit or for extra money from their university or college, such as a bursary, scholarship or hardship fund.

You can find out more information on GOV UK.

How and when do student loans need to be repaid?

According to the Student Loans Company, graduates who became liable to start paying back their loans in April 2025 had an average debt of £53,000. 

But when does this money need to be paid back, and how quickly?

The first thing to be aware of is that there are different types of repayment plans, depending on when your son or daughter attended university. For a student starting an undergraduate course at university in 2025, the current repayment plan is Plan 5.

For Plan 5, the earliest that your son or daughter will need to start repaying their student loan is the April after they leave their course. But this is dependent on their income being over the equivalent of £480 a week, £2,083 a month or £25,000 a year. These threshold amounts change on 6 April every year to keep pace with inflation. They do not need to start making student loan repayments until their income reaches this level.

Student loan repayments will be taken out of your son or daughter’s salary at the same time as their tax and National Insurance if they are employed. If they are self-employed, HMRC will work out how much they need to pay from their tax return, and they will then need to pay their student loan at the same time as their tax.

Your son or daughter will have up to 40 years to repay their loan from the April after they leave university. The loan is then written off, even if it is not fully repaid. Should your son or daughter sadly die before then, or become permanently incapacitated and unable to work, the debt will be wiped.

If your son or daughter has received extra financial support – as outlined in the previous section – this will not need to be paid back.

We hope that the above information helps you to understand more about the financial side of your son or daughter going to uni this autumn. It can be a daunting prospect and, if you need an immediate financial boost to help them get set up for their new adventure, remember that Loans 2 Go offer a range of personal loans which may be able to help.

For more useful financial and lifestyle tips, visit us here again soon at Loans 2 Go.