Student Maintenance Loan to Increase in 2025

Student Maintenance Loan to Increase in 2025

Starting next academic year, UK students attending universities in England will face slightly higher tuition fees. The annual fees for undergraduate students will rise from £9,250 to £9,535 – an increase of £285. This is the first time since 2017 that fees have been raised.

However, to help students manage the cost of living, the government will also increase maintenance loans, which provide additional funds to students. For those living away from home but outside London, loans will increase from £10,227 to £10,544 – an increase of £317. London-based students will see a rise from £13,348 to £13,762 – an increase of £414. These loans aim to help students cover expenses such as rent, food, and transportation.

Student Maintenance Loan to Increase in 2025
Tuition fees rose sharply in 2012 as government reforms allowed universities to raise their costs.

The National Union of Students (NUS) welcomed the rise in maintenance loans but described the fee increase as an inefficient solution. They believe these additional funds could benefit students from lower-income backgrounds.

On the other hand, universities are grateful for the increase, as it helps them deal with current financial challenges. Many universities claim to be lacking funding, and the increased fees offer some support. However, they are still looking to the government for long-term solutions.

Education Secretary Bridget Phillipson announced that the government is working on major reforms to strengthen university finances and improve the overall value of education. Future changes may include looking into the high salaries of university executives.

Student Maintenance Loan to Increase in 2025
Loan allowances have increased over the years to support the rising costs of living expenses.

Under current rules, student loans are written off after 30 years. Repayments only begin once you earn over £25,000 per year, and you will only pay 9% of any income above this threshold. This means that if your earnings stay below the threshold, you may not need to repay the full amount. The upcoming changes in tuition fees and maintenance loans aim to better support both students and universities.

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