The University of Edinburgh has been educating students since it opened its doors in 1583. Since then, the cost and ways students pay for their education has changed dramatically; what hasn’t changed is the financial pressure many feel whilst earning their degree.
From government-backed loans and bursaries, to the increasingly relied upon ‘Bank of Mum and Dad,’ UK students often rely on multiple funding sources. With changes to the student loan repayment system announced in the Autumn 2025 Budget, questions around affordability, debt, and long-term impact are back at the centre of student conversation.
For most UK-based students, loans are issued through the Student Loans Company (SLC), but the system differs depending on where you’re from. Students from England apply via Student Finance England (SFE), whilst Scottish students receive support from the Student Awards Agency Scotland (SAAS).
Scottish students eligible for SAAS studying their first degree in Scotland are not required to pay tuition fees. However, they can still apply for loans (which are repayable) and bursaries (which are not) to cover accommodation, food, and bills. The minimum SAAS loan is £8,400 and bursaries can reach up to £2,000 if household income is below £34,000.
For recipients of SFE, students can take out a tuition loan to cover the £9,535 cost, along with a maintenance loan of up to £10,544 (outside London), with amounts determined by household income.
I reached out to students to discover how loans impact the university experience today.
Neve, a second-year SAAS recipient, said: “If you are receiving a student loan and depending on that to fully finance living whilst at university, it impacts the quality of education because it’s often not enough to live off of.” Neve currently receives the minimum loan offered by SAAS and works twice a week to cover her bills.
In a survey conducted by The Student, respondents were asked about their experiences with student loans. 86 per cent agreed or strongly agreed that loans affected their education, and 71 per cent agreed or strongly agreed that loans had an impact on their social life. When asked if they felt that student loans covered living costs, all respondents said they did not.
“Max loan sets you up well, especially because in Edinburgh it makes you eligible for a bursary,” said one fourth-year student, who receives the maximum SFE maintenance loan and a £3,000 annual bursary. “But loans lower than maximum work on the assumption that your parents will supplement your loan. In many cases, this doesn’t happen.”
Toby, a Classics student, said that the bursary improved his funding by “a lot” and was “really helpful in terms of funding food and other necessities beyond rent,” though he still expects to take on part-time work.
One first-year student commented that the minimum loan was too low and criticised the SLC for relying on household incomes: “Many parents do not support their children at university, so why are our loans dependent on their incomes?”
According to a survey undertaken by the National Union of Students (NUS), of the families that do provide financial support to their children, 84 per cent said it affects their own finances.
Reaching out to the University of Edinburgh about the financial support they offer, Lucy Evans, Associate Principal and Deputy Secretary, Students, said: “We are committed to supporting students from all backgrounds throughout their studies and are acutely aware of the pressures caused by rising living costs. In the last academic year, we provided £2.4 million to help undergraduates with living expenses.”
Student loans as we understand them today were introduced in 1998 when students were first required to contribute directly to tuition costs. Tuition fees were introduced at £1000 per year, and repayable student loans replaced maintenance grants, which had allowed many of the previous generation to attend university without debt. Since then, universities have been allowed to increase their tuition fees to over £9,000.
In the Autumn 2025 Budget, Chancellor Rachel Reeves announced repayment changes affecting students on Plan 2 loans (loans taken out between 2012 and 2023). Under the current system, graduates repay 9 per cent of income above £28,470. From April 2027, the threshold will rise to £29,385 and then be frozen for three years.
“I didn’t think about it when I applied to university. Both my parents had grants so they didn’t know much about it either,” said one fourth-year. She estimates that her debt will be over £60,000 by the time she graduates. “I figured I would never earn enough to pay it off. But with these changes, that might not be the case.”
The changes to student loan repayment have sparked conversations about the fairness of altering the terms of repayment after students have already signed on. For most, loans already fall short of covering cost of living, forcing students to work or rely heavily on family support just to stay afloat. For a system designed to widen access to higher education, can anyone actually afford to stay?
Image by Leah Collins for The Student.
