How Parental Income Affects Student Loans & Finances
5 June 2025By Jack Williams, Staff writer at Unite Students
How parental income affects student finances at university: A guide for UK parents
As a parent, sending your child off to university can be stressful and, for many, financing their new adventure can be one of the largest headaches. The sheer range of options available – including student loans, bursaries and grants – can seem daunting at first.
With so much going on, and empty nest syndrome rearing its ugly head, you might find yourself not knowing where to start.
Read on to learn how parental income affects student loans and how much university costs for parents.
Every student gets the same amount of tuition loan to cover the cost of their university education.
Maintenance loans are means tested, which means parental income will affect how much they’re given.
Tuition loans are paid directly to the university, while maintenance loans are paid into students’ bank account in installations throughout the year.
In this guide:
How much does university cost parents in the UK?
How much university costs UK parents depends on a child’s circumstances. For example, the major cost for most students is accommodation and living fees, which may be covered by their maintenance loan. This is means-tested, however, which means it will differ depending on your income and living situation.
Accommodation and living costs tend to average out around £13,000 per year, so you may still need to bridge the gap between their maintenance loan allowance and their rent and other expenses.
Currently, university tuition is around £9,535 per year, though this is fully covered by student loans, which isn’t affected by parental income. Your child will pay this back as soon as they start earning over the threshold – so there’s no need to worry about paying for their education itself.
Some of the key costs to consider are:
Tuition fees
How much university costs UK parents depends on a child’s circumstances. For example, the major cost for most students is accommodation and living fees, which may be covered by their maintenance loan. This is means-tested, however, which means it will differ depending on your income and living situation.
Accommodation and living costs tend to average out around £13,000 per year, so you may still need to bridge the gap between their maintenance loan allowance and their rent and other expenses.
Currently, university tuition is around £9,535 per year, though this is fully covered by student loans, which isn’t affected by parental income. Your child will pay this back as soon as they start earning over the threshold – so there’s no need to worry about paying for their education itself.
Some of the key costs to consider are:
Tuition fees
Your child’s tuition fees are usually covered in full by their student loan. This is paid by the Student Loans Company (SLC) directly to the university in instalments throughout the year. This loan isn’t means-tested – all your child needs to do is apply for student finance via the government website.
Tuition fees are not standardised across the UK; they differ depending on the country you’re from and where your child will be studying. For example:
Students from England and Wales studying anywhere in the UK currently pay £9,535 for tuition.
For Scottish students studying in Scotland, tuition is free, but costs £9,535 in the rest of the UK.
Students from Northern Ireland studying in Northern Ireland will pay £4,855, unless they’re studying in England, Wales or Scotland – in which case it’s also £9,535.
Accommodation
Accommodation prices differ across the UK, with some cities being more expensive than others. London, for example, costs more for students than cities like Liverpool and Leeds. To cover accommodation costs, students can apply for maintenance student loans. These are means-tested, so the amount they will get is based on their parents’ income.
At Unite Students, we offer rooms from around £100 per week, depending on your child’s chosen city. Prices will also depend on whether they want an en-suite or non-ensuite room. Whatever they choose, all bills are included in their rent – including utilities, Wi-Fi and contents insurance.
They’ll also have access to social and study spaces, gyms and onsite facilities like laundrettes. Alongside this, all our properties are safe and secure, with on-site staff available 24 hours a day, a dedicated support centre and CCTV.
You can take a look at some of our room options available to get a feel for what we offer.
Living expenses
Once their accommodation is sorted, you’ll need to consider all the ‘extra’ costs associated with their living expenses. Their maintenance loan may cover these, but you may need to top up their pot if it doesn't cover everything. Don’t forget, they may also need to get a part-time job to support themselves.
These costs include, but are not limited to:
Food
Transport (either public transport, cycling, or owning a car)
Course equipment and reading materials
Personal bills, such mobile phones and streaming services etc
Hobbies, like shopping and nights out.
Parental income and student loans: What you need to know
Next, we’ll explore the difference between student loans and maintenance loans, what they are and how parental income affects them. It should help you get a good idea of how much you may be expected to pay for your child’s university studies.
How does parental income affect student loans?
The amount of student loan your child receives is not affected by parental income.
Student loans are used to pay for your child’s yearly university tuition. Applications are made through the Student Finance England (SFE) portal, which can be accessed via the government website. You can also use the portal to see how much your child owes and update any contact details.
Their tuition fee loan usually covers yearly tuition fees and is paid directly to the university in instalments – starting at the beginning of the term.
Fortunately, student loans are different from standard bank or finance loans. Repayments will depend on the student loan plan and how much your child earns once they have graduated. For example, most new students will be on Plan 5, so will start repaying a small amount each month once they’re earning over £25,000 per year, according to GOV.UK.
How does parental income affect maintenance loans?
Maintenance loans are means-tested student finance, which means parents’ income will affect how much their child receives.
Your child’s maintenance loan will help them with everyday costs like accommodation, food, transport and other bills. It’s paid directly into their bank account in instalments at the beginning of each term.
Remember that, if they choose a uni halls provider like Unite Students, all utilities are included in their rent.
When applying for a maintenance loan, you’ll be asked to provide some personal details to help determine how much your child is eligible for. This includes:
Your yearly household income
Any income changes in the past year
You and your partner’s (if applicable) National Insurance Numbers
Pension information
Whether you have any other financial dependents.
The maximum amount that they can get will also depend on where they’ll live and their chosen course. For instance, if they decide to stay at home, they can get up to £8,877 per academic year. If they live away but outside of London, this jumps to £10,544 and rises to £13,762 if they live in the capital, as per GOV.UK. We suggest looking into the eligibility criteria for maintenance before you apply to avoid any surprises.
How much are parents expected to contribute?
Once you know the amount their maintenance loan will cover, you may realise that you still need to provide some financial help. Ultimately, your household income and outgoings will determine how much you can afford to give a month, so you may want to factor this into your own budget.
To help you calculate the cost of living and how much your child may need, we’ve provided some handy estimates of how much you may need to contribute every year. The numbers below are based on English students living outside of London and away from home.
Of course, keep in mind that your child may have a part-time job to help support themselves on top of their student loan.
Household income: £25,000 or less | Maintenance Loan: £10,544 | Parental contributions: £0
Household income: £30,000 | Maintenance Loan: £9,791 | Parental contributions: £763
Household income: £35,000 | Maintenance Loan: £9,038 | Parental contributions: £1,506
Household income: £40,000 | Maintenance Loan: £8,285 | Parental contributions: £2,259
Household income: £45,000 | Maintenance Loan: £7,532 | Parental contributions: £3,012
Household income: £50,000 | Maintenance Loan: £6,779 | Parental contributions: £3,765
Household income: £55,000 | Maintenance Loan: £6,026 | Parental contributions: £4,518
Household income: £60,000 | Maintenance Loan: £5,273 | Parental contributions: £5,271
Household income: £62,377 or more | Maintenance Loan: £4,915 | Parental contributions: £5,629
What grants, scholarships and bursaries are available for students?
The rise in the cost of living is putting more families under pressure, especially parents of university students. Needing further financial support is more common than many people realise, with over 47% of students receiving additional support in the form of scholarships, according to a UCAS survey.
Fortunately, there is a range of options available, including grants, scholarships and bursaries, to ensure students from low-income households can pursue higher education. Maintenance loans or any other grants that are means-tested should not affect whether your child is eligible for this further support.
Additional support may come in the form of a one-off, or it could be paid annually, over the course of their degree.
Here are a few options:
University-specific bursaries
Some universities can provide additional funding to support your child. These aren’t typically loans and will be given at the beginning of the academic year to help pay for housing costs, equipment or everyday living costs.
Scholarships
Scholarships are sometimes awarded to those who have excelled in academics, sports or music. They usually help with living costs and tuition fees by providing discounts on university accommodation and teaching. Scholarships are also specific to each university.
Disabled Students’ Grant
Students with disabilities can apply for help with additional living costs, alongside other disability-related benefits. If your child already receives benefits for their disability, it’s a good idea to speak to their caseworker for additional guidance on what they may be eligible for.
Students with children or dependent adults
If your child has caring responsibilities, either as a parent or young carer, then they could apply for the Childcare Grant, the Parents’ Learning Allowance or the Adult Dependents Grant. All of these are for full-time students, are paid on top of other student finance, and aren’t loans, so don’t have to be paid back. The Adult Dependents Grant, for instance, can provide an additional £3000 of funding and support.
Charitable trusts
There are some charitable organisations, such as Turn2us, that can help students from low-income families, depending on certain circumstances.
Vocational bursaries
Students who are applying for medical, nursing, midwifery, allied health, social work or teacher training can be eligible for certain bursaries relating to their chosen career. The NHS Learning Support Fund covers pre-registration nursing, midwifery and allied health profession courses, and NHS bursaries can support certain medical or dentistry courses.
If your child is worried about their finances, we have a variety of well-being and support options available. Take a look at our support hub for more information.
Do parents have to pay for university accommodation?
Typically, a maintenance loan will cover the cost of your child’s accommodation. However, if their room is particularly expensive – or the area where your child lives is – their loan may not go as far as expected. This means you may need to step in and help pay for costs as the year goes on.
However, it’s important to note that you, as a parent, are not legally obligated to pay for university accommodation. If your child chooses to rent a private residence, either on their own or with friends, they may be required to arrange for a guarantor. If you volunteer as a guarantor, however, you will be obligated to pay rent if your child fails to.
Hopefully, you can avoid this by helping your child budget and understand what they’re spending. You could also talk to them about getting a part-time job to help make paying bills a little easier. As a parent, you can help advise them to help make their pounds go further, and hopefully, save you some money too!
Here are some budgeting tips that won’t all the fun out of uni:
Look for accommodation a little further out from the city centre. It’ll likely be a little bit cheaper the further away they are from campus.
Be savvy with food shopping. Set a budget and stick to it. Budget supermarkets are perfect for students (keep an eye out for middle aisle bargains!) and even the bigger ones have some great offers on easy-cook foods.
Book transport as early as possible. This helps to avoid paying more and be aware of when peak and off-peak times are. Planning train or bus journeys in advance can go a long way in saving money over the year.
Buy second-hand. This goes for everything from textbooks to clothes. Be smart and look online for textbooks that past students are trying to get rid of. Just make sure they’re the same edition your child needs.
Use student discounts where possible. These can range from 5 to 20% off. From healthcare, clothing, shoes and even homeware, using a uni discount card can really make their money go that little bit further. y.
Parental income and student finances: FAQs
How much student loan do students with single parents get?
Students from a single-parent household are offered student loans and grants based on their parents’ overall household income. Regardless of whether your child comes from a single- or two-parent home, the process is the same. However, single parents may be able to apply to their child’s university for additional support.
What support is available for low-income families?
On top of student loans and maintenance grants, there are additional grants available for low-income families, such as university-specific grants. You will need to speak to the university’s finance department to find out exactly what support they can offer. There are also certain benefits that you could apply for that will not be affected by maintenance loans or student finance.
What if I can’t afford to help my child financially?
If a parent’s income is low enough, students could be eligible for the full maintenance loan amount, plus additional grants. However, if this is not enough, your child can apply for Universal Credit, or they can get a part-time job to help fund their studies.
Can you get a student loan even if your parents earn a lot?
Yes, students still receive a loan to pay for their university fees even if their parents earn a lot. Student loans aren’t means-tested, which means every student gets the same amount. However, maintenance loans are means-tested student finance, meaning parental income will affect how much they get. Generally, the more their parents earn, the less they will receive.
How do I prove my parents’ income for student finance?
You’ll be asked to provide personal details when applying for student loans. Student Finance England will then verify this information with HMRC using National Insurance numbers to prove parental income. You don’t often need to send physical documents to prove parental income for student loans.
