Understanding Student Finance

Student Finance can look frightening the first time you see it.
Loans. Maintenance payments. Evidence. Deadlines. Letters that feel important.

If you did not grow up with adults explaining how this works, it can feel like everyone else was given a handbook you never received.

Here is the truth:
Student Finance is confusing for almost everyone.

The better news is this: you can understand it, step by step, without stress or panic. This guide explains how it works in clear, real language, with particular focus on care-experienced young people who may have different support available.

UCAS application fees for care-experienced young people

From the 2027 application cycle, UCAS has confirmed that care leavers will not need to pay an application fee when applying to university or college.

This removes a financial barrier at the very first step of applying.

If you are applying before 2027, an application fee may still apply. If you are unsure, check directly with UCAS or speak to your Personal Advisor, careers adviser, or college support team.

If you are applying from 2027 onwards, this fee should be automatically waived when you declare your care-experienced status.

This change does not affect Student Finance loans or repayments, which are explained below.

The two main parts of Student Finance

Student Finance for university usually comes in two parts. Click on the items below for more information:

This covers the cost of your course and is paid directly to your university.
- You do not receive this money
- It covers the full cost of your degree
- You only repay it after you earn above a certain income
If you never received anything, it is okay to ask:
“Could I please have my contract or written terms so I know what’s expected?”
That is not unusual.
It is the law.
This money is paid directly to you and helps with everyday living.
- Usually paid three times a year
- Helps with rent, food, travel, bills and living costs
- The amount depends on your personal circumstances

Think of this as support to help you study, not debt in the frightening sense.

How repayments actually work

This is the part that surprises most people.

You only repay if:
You earn above the repayment threshold
Payments are taken automatically from your salary
If you never earn enough, you never repay
After a set number of years, any remaining balance is written off

It works more like a graduate contribution than a traditional loan.

You will not be chased for payments and you will not be asked to pay if you cannot afford it.

How much maintenance loan you can get

The amount you receive depends on:

Whether you live at home or move out
Whether you study in London
Household income
Your care experience

Care-experienced students are usually assessed as independent, which means:

Student Finance does not rely on parental income
You are often eligible for the higher maintenance rate

Your Personal Advisor or leaving care worker can confirm your status with a short letter if needed.

Extra money you may be entitled to as a care-experienced student

Many people are never told about this support.

You may be eligible for:
Local authority support while in education
University care leaver bursaries, often between £1,000 and £3,000 per year
Help with accommodation during holidays
Grants for specific needs
Support with equipment or laptops

Check:

Your local Care Leaver Offer
Your university’s care leaver support page
Your PA or support worker

You are not asking for too much. This support exists for a reason.

How to apply for Student Finance

Applications are completed online and usually follow this order:

Create an account on the Student Finance website
Enter your personal details
Select your course and university
Choose tuition fees and/or maintenance loans
Upload evidence if requested
Submit your application and wait for confirmation

The process takes time, so applying early is important.

Evidence care leavers may be asked for

You may be asked to provide a letter confirming:

Your care leaver status
When you were in care
Your current living situation

This letter can come from:

Your local authority
Your Personal Advisor
Social services
A support or leaving care team worker

If asking for this feels overwhelming, remember this is standard. Student Finance teams and universities deal with this every day and without judgement.

Grants, bursaries and extra help

Alongside Student Finance, there is often additional support available that does **not** need to be repaid.

Many students are never told about this, especially those who are care-experienced.

This can include university bursaries specifically for care leavers, hardship funds if money becomes tight, and subject-specific grants or scholarships linked to your course. Some students may also be entitled to Disabled Students Allowance, which can help with learning support, equipment, or adjustments if relevant.

Support with accommodation, particularly during holiday periods, is also common for care-experienced students.

Much of this support is not always easy to find and may be tucked away on university websites. Asking about it is encouraged and expected.

These options exist because your wellbeing and stability matter while you study.

What Student Finance does not cover

Student Finance is designed to help, but it does not always stretch to cover everything.

It does not usually cover:

Rent that is higher than your maintenance loan
Travel costs, unless your university offers specific support
Food, bills, and everyday living costs beyond your loan
Personal spending
Textbooks, equipment, or course materials unless you have additional funding

This is why many students work part time or use bursaries, grants, or hardship funds alongside their loan.

Needing extra help does not mean you are failing. It simply means you are navigating the same challenges most students face.

If something goes wrong with payments

Payment delays or mistakes can happen, and they are far more common than people realise.

If something does not arrive when expected or the amount seems wrong, the first step is to contact Student Finance. It can also really help to speak to your university’s support or wellbeing team, as they are used to dealing with these situations and can offer reassurance or short-term help.

Your Personal Advisor or support worker can also step in to help you communicate or apply for emergency support if needed.

You will not be removed from your course because of a delayed payment. Universities handle these issues regularly and understand how stressful they can be.

Summary

Student Finance means your tuition fees are paid directly to your university, and you receive a maintenance loan to help with living costs. If you are care-experienced, you may also have access to extra support, bursaries, and grants that recognise your situation. Repayments only happen if you earn above the threshold.

You are not expected to manage this alone.
You are not penalised for being care-experienced.
You are not judged for asking questions.

…And you are not stuck if your plans change.

Support exists, and you are allowed to use it.

Reflective moment

Student Finance feels overwhelming for many people, especially those who did not grow up with clear guidance or stable support.

If this feels confusing or stressful, it does not mean you are doing it wrong. It means the system was not designed with your situation in mind.

You are learning, preparing, and building a future for yourself.
That matters.