Student finance 2026/27: fees, repayment thresholds and what parents are expected to pay
Tuition rises to £9,790, Plan 5 repayments start at £25,000, Plan 2 stays frozen. Maintenance, bank accounts and council tax too
Students starting or continuing a degree in England this autumn face the first tuition fee rise since 2017, alongside repayment thresholds that are frozen or newly set. This guide explains the 2026/27 fee, how repayments work under Plan 5 and Plan 2, how the maintenance loan and parental contribution fit together, and two smaller money points for freshers: student bank accounts and council tax.
Tuition fees
The maximum tuition fee at English universities is £9,790 for 2026/27, up from £9,535. Almost all students cover it with a tuition fee loan paid directly to the university. You do not pay it upfront and it does not depend on household income. Fees and funding differ in Scotland, Wales and Northern Ireland.
Repayment plans
Which plan you are on depends on when your course started.
| Plan | Who | Repayment threshold | Rate above threshold |
|---|---|---|---|
| Plan 5 | Courses starting from September 2023 | £25,000 | 9% |
| Plan 2 | Courses 2012 to 2023 | £29,385 (frozen to 2029/30) | 9% |
| Plan 1 | Courses before 2012 | Around £26,000 | 9% |
| Postgraduate | Master's and PhD loans | £21,000 | 6% |
Repayments come out of pay through PAYE, like tax, only once income passes the threshold. A Plan 5 graduate earning £30,000 repays 9% of £5,000, which is £450 a year or about £37 a month. Earn below the threshold and you repay nothing. Any balance left is written off after 40 years on Plan 5 or 30 years on Plan 2.
The Plan 2 freeze at £29,385 until 2029/30 means more graduates cross it as wages rise, and those already above it repay more each year in real terms. Plan 5's lower threshold means repayments start earlier in a career.
Interest on Plan 5 is set at RPI inflation only. Plan 2 charges RPI plus up to 3% depending on income. For most graduates, the amount repaid depends far more on earnings than on the interest rate, because repayments are a percentage of income and the balance is written off.
Maintenance loans and the parental contribution
The maintenance loan covers living costs and is paid to the student in three instalments. The maximum depends on where you live and study; the amount you actually get depends on household income. Above a household income of roughly £25,000, the loan reduces on a sliding scale until it reaches the minimum for the highest-income households.
The gap between the minimum loan and the maximum loan is the parental contribution. The system assumes parents make it up, although there is no legal obligation. For a student living away from home outside London, that gap can be several thousand pounds a year. Parents should know the figure before term starts; the student finance calculator on gov.uk shows it. If a parent's income has dropped by 15% or more since the tax year used for assessment, apply for a current year income assessment.
Grants that do not need repaying exist for students with disabilities, dependants or childcare costs.
Student bank accounts
Most high street banks offer student accounts with an interest-free arranged overdraft that grows each year of the course. The overdraft limit and the perks vary; do not quote last year's figures, check a comparison site for today's offers. Treat the overdraft as a safety net, not spending money. It usually converts to a graduate account with a shrinking limit after the course.
Council tax
Full-time students are exempt from council tax. A household where everyone is a full-time student pays nothing. If one non-student lives with students, that person gets the 25% single-person discount. Give the council a copy of your student status certificate from the university, and check the exemption is applied to the bill rather than assuming.
What to do next
- Apply for student finance as early as possible; late applications delay the first instalment.
- Parents: find the expected contribution figure and plan for it.
- Ask for a current year income assessment if household income has fallen.
- Register the council tax exemption in the first week.
- Details are at gov.uk.