If you’ve got kids approaching university age, you might be feeling the pressure of the rising costs ahead. From tuition fees and student accommodation to everyday expenses like course books and nights out - it can all add up quickly.
Whether your child is just a few years away from starting university or preparing to begin this autumn, there are always practical steps you can take to save money and manage your finances more effectively.
How much does university cost?
To help cover the costs of going to university the government provides two loans to students; the Tuition Fee Loan and the Maintenance Loan.
The Tuition Fee Loan works by paying the cost of your child’s tuition directly to the university. Maintenance Loans are means-tested, and to apply you’ll have to provide details of your household income. They’re designed for covering living expenses when your child’s at university and are paid directly into their bank account at the start of each term.
Even though tuition fees often grab the headlines, it’s the living costs that most students actually struggle with. A new report from the Higher Education Policy Institute found that students need £61,000 to have a minimum socially acceptable standard of living over a three-year degree. But for students in England, the maximum Maintenance Loan amount would only cover around half of that.
Here’s a recap of the Tuition Fee and Maintenance Loan available to UK students.
Tuition Fee Loan
Almost all UK students are eligible for a Tuition Fee Loan. The amount is paid directly to their university, without ever touching the student’s bank account.
There are two factors that determine tuition fees: where the student’s from and where the student’s studying. For most UK students, it’ll cost £9,535 a year (2025/26).
- Students from England and Wales - a tuition fee cap of £9,535 a year (2025/26) applies for full-time courses in the UK.
- Students from Northern Ireland - the same £9,535 a year (2025/26) tuition fee cap applies for full-time courses in most of the UK, with a discounted rate of £4,855 if studying in Northern Ireland.
- Students from Scotland - again, the £9,535 a year (2025/26) tuition fee cap applies for full-time courses in most of the UK, with free tuition available if studying in Scotland.
While tuition fees can be covered upfront by the government’s Tuition Fee Loan, students will still need money for accommodation and day-to-day living costs.
Maintenance Loan
The Maintenance Loan can feel a bit more complex, but it’s an important part of helping students cover their living costs while at university.
Simply put, the higher the household income, the smaller the Maintenance Loan tends to be. As it’s expected that parents may cover some of the living expenses.
Students from England can receive a Maintenance Loan (that’s repayable) through the student finance system. Like most of the UK, the amount available depends on two factors: the student’s living situation while studying and the household income of their non-university residence.
For the 2025/26 academic year, students from England can receive:
- between £3,907 and £8,877 if living with parents;
- between £4,915 and £10,544 if living away from home but outside of London; and
- between £6,853 and £13,762 if living away from home and in London.
Students from Wales can receive a combination of a Maintenance Loan and Grant from the Welsh government. The amount of money given is the same for all students. The difference is how much is covered by the Grant and the Loan, which is determined by the exact household income of the student.
For the 2025/26 academic year, students from Wales can receive:
- up to £10,480 if living with parents;
- up to £12,345 if living away from home but outside of London; and
- up to £15,415 if living away from home and in London.
Students from Northern Ireland can receive a combination of a Maintenance Loan and Grant. Students with household incomes of £41,540 or more become ineligible for the Grant portion of student finance. The variations between the minimum and maximum amounts are determined by the exact household income of the student.
For the 2025/26 academic year, students from Northern Ireland can receive:
- between £4,726 and £7,925 if living with parents;
- between £6,099 and £9,757 if living away from home but outside of London; and
- between £8,543 and £13,016 if living away from home and in London.
Students from Scotland can receive a combination of a Maintenance Loan and Bursary. Students with household incomes of £34,000 or more become ineligible for the Bursary portion of student finance. Unlike the rest of the UK, the Scottish system doesn’t distinguish different living situations. It also uses banded household income to calculate Maintenance Loan amounts.
For the 2025/26 academic year, students from Scotland can receive:
- between £8,400 and £11,400.
How to pay for university
As a parent, your support can make a big difference in helping your child manage these costs and build good money habits. Here are five essential tips to guide you in supporting your student through this important chapter.
1. Start saving early
Starting a university fund for your children when they’re a young age will help take the sting out of the cost of sending them to uni when the time comes. A Junior ISA is a tax-free way to put money aside for your child’s future and grandparents can contribute too. You can save up to £9,000 a year (2025/26) and your child won’t be able to access the money until they turn 18.
If you don’t want to go down the ISA route, you could always put a portion of what you’d spend on each birthday and Christmas present aside, or save a portion of your salary each month, the same way you’d set aside money for your pension. If you get into the habit of doing it, you might not even notice that the money’s missing at the end of the month.
2. Explore university financial support
Each university will have a range of support services available to new students including bursaries and scholarships. These cash awards aren’t just reserved for students from low socio-economic backgrounds and, depending on the university, you can find funding for disabled students and those from rural communities, for example. Whatever your circumstances, it’s worth doing some research.
3. Understand government loans and grants
It’s important to fully understand how student loans and grants work before your child starts university. Loans don’t need to be repaid until your child is earning over a certain threshold and repayments are generally based on income rather than the amount borrowed. Grants, on the other hand, are non-repayable and can significantly reduce the financial burden.
4. Encourage part-time work
A great way to teach your children the value of money is to make them earn it. Whether that’s by doing jobs around the house in exchange for pocket money from a young age, or allowing them to get a Saturday job while still studying. This can give them a taste of the independence that’s to come. Plus, work experience can help them get that first job while studying at university.
5. Budget as a family
Having open conversations about money as a family can make a huge difference. Sit down together to create a realistic budget that covers essentials like rent, food, travel, and study materials. Encourage your child to track their spending and adjust the budget as needed. This not only helps prevent overspending but also teaches valuable money management skills that will benefit them long after university.
Don’t forget your own finances
Research from Save the Student found that parents typically give their children while studying around £170 per month. But before committing to making regular contributions to support your child through higher education, it’s essential to have a financial health check first.
Two major financial commitments to consider are your mortgage and pension.
- Almost 90% of over-50s homeowners are still paying off their mortgage - this means some parents are still facing the challenge of balancing mortgage payments alongside other living expenses.
- A moderate lifestyle in retirement would cost a couple £43,900 a year in 2025 - this could require substantial personal pension savings to cover this annual income in retirement.
So, if you’re still catching up on your pension or managing mortgage payments, it might be wiser to focus on strengthening your own financial foundation before contributing to your child’s finances.
It’s also important to consider how long this financial support will be needed. Many assume student courses last three years, but some degrees, such as medicine or architecture, require a longer commitment. Planning for the duration of support helps families prepare better and avoid surprises down the road.
Summary
Supporting your child through university doesn’t have to be overwhelming. With a little planning and clear communication, you can help them navigate this new chapter confidently. Here are five helpful tips to keep in mind as you support your student.
- Start saving early - put aside money regularly, whether through a Junior ISA, gifts, or monthly savings, so funds grow steadily over time.
- Explore university financial support - explore bursaries, scholarships, and hardship funds that your child may be eligible for beyond just income-based options.
- Understand government loans and grants - know how Tuition Fee Loans and means-tested Maintenance Loans work, and use tools like the student finance calculator to plan effectively.
- Encourage part-time work - support your child in finding part-time or summer jobs to help cover expenses and develop financial independence.
- Budget as a family - create a shared budget, cut unnecessary spending, and use money-saving apps to prepare everyone for managing university finances.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
