Student Finance Glossary
Clear, plain-English definitions for terms related to university funding, student loans, and repayments.
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Advanced Learner Loan
A government loan available for students aged 19 and over studying at Level 3 to Level 6 qualifications at an approved college or training provider. Unlike undergraduate loans, Advanced Learner Loans are not income-contingent — repayments are based on a fixed schedule.
Bursary
A non-repayable grant awarded by a university, college, or external organisation to help students with the cost of studying. Bursaries are often means-tested or awarded for specific circumstances such as being a care leaver, having a disability, or studying a particular subject.
Confirmation of Acceptance for Studies (CAS)
A unique reference number issued by a UK university to international students who have been offered a place. The CAS number is required when applying for a Student Visa and confirms that the institution is sponsoring the student's visa application.
Disabled Students Allowance (DSA)
Non-repayable government funding available to students with a disability, long-term health condition, mental health condition, or specific learning difficulty such as dyslexia. DSA covers the extra costs of studying that arise directly from the disability, including specialist equipment and support workers.
Early Repayment
Voluntarily paying back more than the required monthly repayment on your student loan. There is no penalty for early repayment of UK student loans. However, given the income-contingent nature of repayments and the write-off after 30–40 years, early repayment may not always be financially beneficial.
Graduate Loan
A personal loan product offered by some banks and building societies specifically for recent graduates. Graduate loans typically offer lower interest rates than standard personal loans and are designed to help with costs such as professional qualifications, a first car, or moving costs after university.
Hardship Fund
Emergency financial support provided by universities to students experiencing unexpected financial difficulties. Hardship funds are typically non-repayable and are assessed on a case-by-case basis. Students should contact their university's student services team to apply.
Interest Rate (Student Loan)
The rate at which interest accrues on your student loan balance. For Plan 2 loans, interest is charged at the Retail Price Index (RPI) plus up to 3% while studying. For Plan 5 loans (students starting from 2023), interest is charged at RPI only. Interest continues to accrue even during periods of non-repayment.
Loan Write-Off
The cancellation of any remaining student loan balance after a set period. For Plan 2 loans, the remaining balance is written off 30 years after the April you first became eligible to repay. For Plan 5 loans, the write-off period is 40 years. Any written-off amount is not treated as taxable income.
Maintenance Loan
A government loan to help with living costs while studying at university. The amount you can borrow depends on your household income, where you study, and where you live. The maintenance loan is paid directly to you in three instalments per academic year and must be repaid after graduation.
Means Testing
The process of assessing your household income to determine your eligibility for and the amount of financial support you receive. The maintenance loan and some grants are means-tested, meaning students from lower-income households receive more support.
Parental Contribution
The assumption built into the student finance system that parents or guardians will contribute to a student's living costs if the household income is above a certain threshold. Students from higher-income households receive a lower maintenance loan on the basis that parents are expected to make up the shortfall.
Plan 2 Loan
The student loan plan for undergraduate students who started their course in England between 1 September 2012 and 31 July 2023. Repayments begin when earnings exceed £27,295 per year, at a rate of 9% on earnings above that threshold. The loan is written off after 30 years.
Plan 5 Loan
The student loan plan for undergraduate students starting courses in England from 1 August 2023 onwards. Repayments begin when earnings exceed £25,000 per year, at a rate of 9% on earnings above that threshold. The loan is written off after 40 years.
Postgraduate Loan
A government loan of up to £13,000 for students studying a taught or research Master's degree in England. Repayments begin when earnings exceed £21,000 per year, at a rate of 6% on earnings above that threshold. Postgraduate loans are separate from undergraduate loans and have different repayment terms.
Repayment Threshold
The annual income level above which you must begin repaying your student loan. You only repay 9% of earnings above the threshold — if your income falls below it, repayments stop automatically. The threshold is reviewed annually and varies by loan plan.
Retail Price Index (RPI)
A measure of inflation used to calculate the interest rate on student loans. Student loan interest is linked to RPI, meaning the real value of your debt can increase significantly during periods of high inflation, even if you are making repayments.
Scholarship
A non-repayable award given to students based on academic achievement, talent, or other criteria. Scholarships are offered by universities, charities, professional bodies, and employers. Unlike bursaries, scholarships are not usually means-tested.
Student Loans Company (SLC)
The government-owned organisation responsible for administering student loans and grants in the UK. The SLC processes applications, disburses funds, and manages loan repayments on behalf of the government. Repayments are collected by HMRC through the payroll system.
Tuition Fee Loan
A government loan that covers the cost of your university tuition fees, paid directly to your university on your behalf. The maximum tuition fee loan for students in England is currently £9,250 per year. You do not need to pay tuition fees upfront — the loan is repaid after graduation based on your income.
University and Colleges Admissions Service (UCAS)
The centralised admissions service through which students apply to most UK universities and colleges. UCAS manages the application process, including personal statements, references, and the clearing system for students who do not receive their expected grades.
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