University tuition fees increase: what it means for students
Tuition fees are going up for the first time in eight years. Here's how it could affect you
It's going to cost UK students more to go to university in England from autumn 2025, with tuition fees going up to a maximum of £9,535 a year.
The government has announced an inflation-linked increase of £285 on the current £9,250 cap, which is the first change to the fees since 2017.
Maintenance loans will also rise, with up to £414 extra each year for students from the lowest-income families.
Both increases are linked to a particular measure of inflation called RPIX (which is currently 3.1%). If tuition fees continue to increase in line with RPIX, they could reach £10,680 in 2029-30, according to research from the Institute of Fiscal Studies (IFS). There's not yet been any word on further increases in future years.
The government says that increased tuition fees will help universities, which have seen the value of the fees they receive eroded by inflation over the past eight years.
But the impact will be felt by students, who will need to take on an additional £855 of tuition fee loans over the course of a three-year degree.
Here are five things you should know about the increase.
So, while you're at university, the cost of your tuition fees will not have a direct impact on your day-to-day life. What will make a difference is your maintenance loan.
The amount of maintenance loan you can get is affected by various things - such as where you are studying and how much your parents earn. The maximum you can get will also increase in autumn 2025, by up to £414 a year.
However, inflation has been very high over the past few years and maintenance loans have not been keeping up. Although any increase to maintenance support will be welcome for students, those researchers at IFS say it will still leave those from the lowest-income backgrounds around £1,030 (9%) worse off in real terms than equivalent students in 2020-21.
Again, the maintenance loan is something that is repayable. But you do not pay anything back until you have finished your course and you're earning above a certain amount in paid employment.
Once you get to that stage, you will only repay once you are earning above the repayment threshold. The threshold on repayments is currently £25,000. After this you repay 9% of your earnings that are above that threshold. This gets taken directly out of your payslip, along with taxes.
So, if you're earning £25,000 after graduating, you're not above the threshold and you don't make any repayments.
Earn £35,000 and you would repay 9% of the £10,000 you're earning over the threshold - so £900 a year (or £75 a month). Earn £55,000 and you would repay 9% of the £30,000 over the threshold (£2,700 a year or £225 a month).
The key point here is that, in terms of your monthly outgoings once you are earning, it really doesn't make any difference how much you owe on your tuition fee loans. Your repayments are pegged to how much you are earning - not how much you have borrowed.
Your monthly repayments won't be any different than under the previous tuition fee structure (see the point above) but you might end up making more of them. It all depends on how your earnings pan out over your career. If you still owe anything after 40 years, the loan is wiped.
The government has announced an inflation-linked increase of £285 on the current £9,250 cap, which is the first change to the fees since 2017.
Maintenance loans will also rise, with up to £414 extra each year for students from the lowest-income families.
Both increases are linked to a particular measure of inflation called RPIX (which is currently 3.1%). If tuition fees continue to increase in line with RPIX, they could reach £10,680 in 2029-30, according to research from the Institute of Fiscal Studies (IFS). There's not yet been any word on further increases in future years.
The government says that increased tuition fees will help universities, which have seen the value of the fees they receive eroded by inflation over the past eight years.
But the impact will be felt by students, who will need to take on an additional £855 of tuition fee loans over the course of a three-year degree.
Here are five things you should know about the increase.
This won't cost you anything right now
For the vast majority of students, tuition fees are covered by tuition fee loans. You will be expected to repay those loans once you start earning, but those repayments won't start until you have finished your course and you're in paid employment (and earning above a certain amount). More on that below.So, while you're at university, the cost of your tuition fees will not have a direct impact on your day-to-day life. What will make a difference is your maintenance loan.
Maintenance loans have also been increased
For many students, maintenance loans are a more immediate concern than tuition fees. This is the loan that provides you with money to live on - money that can go towards things such as accommodation, food and transport.The amount of maintenance loan you can get is affected by various things - such as where you are studying and how much your parents earn. The maximum you can get will also increase in autumn 2025, by up to £414 a year.
However, inflation has been very high over the past few years and maintenance loans have not been keeping up. Although any increase to maintenance support will be welcome for students, those researchers at IFS say it will still leave those from the lowest-income backgrounds around £1,030 (9%) worse off in real terms than equivalent students in 2020-21.
Again, the maintenance loan is something that is repayable. But you do not pay anything back until you have finished your course and you're earning above a certain amount in paid employment.
Students from Wales, Scotland or Northern Ireland are largely unaffected by this increase
This change is only going to directly affect UK students who decide to go to university in England. Tuition fees in Wales, Scotland or Northern Ireland are set separately by the devolved governments. So if you live in one of those countries, you would only be paying these higher tuition fees if you chose to go to university in England.An increase in tuition fees does not affect your eventual monthly repayments
As we mentioned above, you only start repaying tuition fee loans once you have completed your course and you are earning.Once you get to that stage, you will only repay once you are earning above the repayment threshold. The threshold on repayments is currently £25,000. After this you repay 9% of your earnings that are above that threshold. This gets taken directly out of your payslip, along with taxes.
So, if you're earning £25,000 after graduating, you're not above the threshold and you don't make any repayments.
Earn £35,000 and you would repay 9% of the £10,000 you're earning over the threshold - so £900 a year (or £75 a month). Earn £55,000 and you would repay 9% of the £30,000 over the threshold (£2,700 a year or £225 a month).
The key point here is that, in terms of your monthly outgoings once you are earning, it really doesn't make any difference how much you owe on your tuition fee loans. Your repayments are pegged to how much you are earning - not how much you have borrowed.
Tuition fees are repaid over a maximum of 40 years
One impact of the increase in tuition fees is that you might be making your repayments for a longer amount of time. Because you will be taking out a larger loan, it's likely to take longer to repay it.Your monthly repayments won't be any different than under the previous tuition fee structure (see the point above) but you might end up making more of them. It all depends on how your earnings pan out over your career. If you still owe anything after 40 years, the loan is wiped.
More information on tuition fees and maintenance loans
When it comes to student finance, there is quite a lot to get your head around. If you're looking to find out more, you might like to start with our Student Finance Zone on The Student Room. All of the information there is written and updated by Student Finance England (SFE), including a guide to what maintenance support you can expect to get as a full-time undergraduate student.
You'll also find SFE on The Student Room forums, where their expert advisers can provide answers to questions around your own specific situation.
Outside of our own site, the student section on the MoneySavingExpert website provides clear and detailed explanations of the student loans system. The IFS report that we've referenced in this article can be found on the IFS website.
