Here’s What You Need To Know About Tuition Fees & Maintenance Loan Increases
University fees will rise in 2025 for the first time in eight years.
The government has just announced that tuition fees will be rising next Autumn to a maximum of £9,535 per year.
Maintenance loans are also increasing up to £414 per year to help with student living expenses. So that’s something.
This is the first time tuition fees have increased since the 2017 cap at £9,250. But since then, universities have faced financial difficulties. In a recent study, PwC notes that the sector is facing pressure from increased costs that they can’t recoup from tuition fees. But y’know, those vice-chancellor salaries don’t come cheap.
So what does all of this mean for students? We’ve got everything you need to know.
In this article:
- Why have tuition fees gone up?
- Increases to maintenance loans
- How much extra will I have to pay for tuition fees?
- How much more maintenance loan will I get?
- Does this apply to existing students?
- How will this affect my student loan repayments?
Why have the tuition fees gone up?
Universities have been struggling financially since the last major change froze tuition fees in 2017. Because they haven’t had any increase in the last seven years, tuition fees haven’t kept up with inflation, which we know has been causing havoc the last few years.
This means that around 40% of universities are facing budget deficits according to a report by the Office for Students.
Tuition fee increases should give universities a boost to their finances to tackle some of the problems they’ve faced in recent years.
Bridget Phillipson, the Education Secretary, has also said that the government would be announcing further “major reform” for universities in the coming months. So watch this space.
Increases to maintenance loans
The good news is that while tuition fees have increased, the government has also announced an increase to the maintenance loans, in line with inflation.
Taking the edge off tuition fees rising, maintenance loans are also increasing by up to £414 per year. This is to help with the additional living costs and expenses that students face.
How much extra will I have to pay for tuition fees per year?
The maximum tuition fees a university can charge from 2025 will be set at £9,250 a year. This is a rise of 3.1% (the current inflation rate). This can look a little different depending on what type of course you’re doing.
- For full-time students, the maximum cap will go up by £285. This means the maximum tuition fee per year will be £9,535.
- For part-time students, the maximum cap will go up by £210. So the maximum per year charge will be £7,145.
- If you’re studying an accelerated degree course, the maximum cap will go up by £340. This works out at a maximum of £11,440 per year.
How much extra maintenance loan will I get?
Maintenance loans will also increase by 3.1%, in line with inflation. Depending on your circumstances, this will mean an additional loan of up to £414 per year.
| Increase to maintenance loan in £ pounds | Maximum maintenance loan per year | |
|---|---|---|
| Students living at home | £267 | £8,877 |
| Students living away from home, studying in London | £414 | £13,762 |
| Students living away from home, studying outside London | £317 | £10,544 |
| Students studying overseas as part of UK course | £363 | £12,076 |
You’ll receive your maintenance loan in three equal instalments in line with student finance payment dates. So you could see up to £138 extra per instalment. Check how much maintenance loan you’re entitled to in our guide.
Does this apply to existing students?
The rises in tuition fees and maintenance loans will come into play from Autumn 2025 for both new and existing students. So if you’re starting your second or third year, you can expect to see these increases as well.
If you’ve already got your offer for 2025/26 start (for example, if you’ve deferred a year), then get in touch with your university to see how it might impact you.
How does this affect my student loan repayments?
Luckily, the increase to tuition and maintenance loans WON’T affect how much student loan you repay every year. You’ll still pay back the same amount once you’ve hit the threshold for repayments. For Plan 5 students starting after August 2023, you’d need to earn £25,000 per year before you start repaying 9% on anything OVER that amount.
We have a whole guide on student loan repayments to help you understand how it works.
So while the tuition fee increase is a blow, considering Labour have pledged to scrap tuition fees many times, the good news is that you are unlikely to feel any effects from this rise in your paycheck.
But maintenance loans still fall short
We know that students are forever feeling the pinch when it comes to managing their money. Our 2024 Freshers report showed that 70.5% of students were influenced by the cost of living crisis when it came to choosing their university. Recent reports from HEPI state that putting more focus on students’ living costs could actually help reduce dropout rates in universities.
We spoke to Izzy Hall, our Student Beans Gen Z expert, about how this news is both surprising and disappointing for students and their families.
“After many pledges of tuition fees being scrapped under a labour government, UK students are now undoubtedly disappointed by this latest update.
“Luckily, the increased tuition fees won’t affect the amount students repay each year, as this is determined by salary. However, the announcement of higher fees after the many pledges to abolish them has left our young people questioning what other decisions will be made about their futures.
“We also worry this increase has huge potential to discourage those from low-income backgrounds from applying to university. Many students from these families are already concerned about being able to afford to study, and this announcement will only worsen these fears, further widening the UK’s education inequality.
“The biggest change students were hoping for was an announcement around heightened loans or even the reintroduction of maintenance grants. However, this was not the case. Whilst the increase to maintenance loans seems a positive change on the surface, this potential extra of £414 per year will do little to help the thousands of struggling students across the UK who are barely able to cover essential expenses, and juggling multiple jobs outside of their studies.
“Many students are already heavily relying on the bank of mum and dad to support them, and this continued lack of adequate financial support will keep pushing this cycle of dependence.
“We urge the government to introduce greater financial support packages for students and cease dismissing the current state of the student cost of living crisis.”
