Loans for students with limited means

For many students, the maintenance loan runs out well before the end of term. Rent in shared housing or halls can take most of it, and part-time work does not always fit around lectures, placements or caring responsibilities. Students without family support, estranged from their parents, care leavers, mature students and student parents are often under the most pressure, and they are also the ones most targeted by easy credit.

This page covers students in the United Kingdom with limited means. It explains how to make the most of student finance, where to find hardship money that does not need repaying, how student bank accounts and overdrafts work, and which kinds of borrowing to avoid while you study.

Get the full student finance you are entitled to

Maintenance support depends on your household income, where you study and where you normally live. Students apply through Student Finance England, Student Awards Agency Scotland (SAAS), Student Finance Wales or Student Finance NI.

• Reassess your household income if your parents' income has fallen in the current tax year, or if you are estranged from them. You may qualify for more.
• Independent student status may apply if you are estranged, a care leaver, over 25, married or supporting a child, in which case your parents' income is not counted.
• Extra allowances exist for some groups: Disabled Students' Allowance for study-related disability costs, and in England the Childcare Grant and Parents' Learning Allowance for student parents.
• Bursaries and scholarships from your university, often based on household income, are frequently paid automatically, but some need an application.

Student loan repayments depend on your future earnings rather than a fixed monthly amount, which makes them a different kind of debt from a bank loan or credit card.

Hardship funds and emergency help at university

Most universities and colleges have a hardship fund or student support fund for students facing unexpected costs or a shortfall in income. Payments are usually grants rather than loans. Many institutions also offer:

• short-term emergency loans, often interest-free, to cover a delay in student finance;
• food vouchers, free breakfasts or campus pantries;
• help with laptops, travel costs for placements or course materials;
• specific support for care leavers and estranged students, sometimes including year-round accommodation.

The student money advice team or students' union advice centre is the place to start, and their advice is free and confidential. Our page on help buying a computer for study has more on equipment costs.

Benefits and other income while studying

Most full-time students cannot claim Universal Credit, but there are exceptions, including some student parents, students who receive certain disability benefits and have limited capability for work, and some students in a couple with a non-student partner. Part-time students may have more access. Council Tax exemptions usually apply to households made up entirely of full-time students.

Disabled students may be able to claim PIP or Adult Disability Payment, which is not affected by being a student. Charities and educational trusts also offer grants for particular courses, backgrounds or circumstances.

Student bank accounts and overdrafts

Many banks offer student accounts with an interest-free arranged overdraft. Used carefully, it can be one of the cheapest forms of short-term borrowing available to you. Points to check:

• how the interest-free limit is set, and whether it rises each year or depends on a review;
• what happens after you graduate, when the account becomes a graduate account and the interest-free period eventually ends;
• the charges and interest if you go beyond the arranged limit.

Treat the overdraft as a safety net, not extra income, and plan how you will clear it after your course.

Credit to be careful with as a student

Students are often offered credit cards, buy now pay later and short-term loans through apps and social media. On a student budget, these can quickly spiral.

• Buy now pay later: easy to use across several providers at once, and missed payments can lead to charges and debt collection.
• High-cost short-term loans: capped by the FCA, but expensive, and taking one to cover rent is often a sign that a hardship fund would be a better route.
• Guarantor loans that ask a parent or friend to cover you.
• Money mule offers: anyone offering cash to let them use your bank account is involving you in fraud, which can lead to account closure and a criminal record.
• Fake loan offers that ask for an upfront fee or arrive via social media direct messages.

If you need to borrow beyond your overdraft, a credit union that accepts students as members is usually a far safer choice, with interest capped in Great Britain at 3% a month. Compare APR and the total repayable for any offer. Our guide to urgent loans explains what to look out for when time is short.

Building a realistic student budget

A simple budget for each term helps you see whether the gap is temporary or structural. List your income (maintenance loan, bursary, part-time wages, any family help) and fixed costs (rent, bills, travel, phone, course costs), then what is left per week for food and everything else. If your rent alone exceeds your loan, talk to the money advice team early; it may be possible to move to cheaper accommodation, get a larger bursary or receive hardship support before debts build up.

Checklist for students short of money

• Have I checked that my household income assessment is up to date, or applied as an independent student?
• Have I applied for my university's bursary and hardship fund?
• Am I claiming any allowance for disability or children?
• Am I using my interest-free overdraft rather than costlier credit?
• Have I avoided buy now pay later, payday loans and any request for an upfront fee?
• Have I spoken to the student money advice service or students' union?

If you already have debts you are struggling with, free advice from StepChange, Citizens Advice, National Debtline or MoneyHelper is available. See also our pages on one-off hardship grants and safer borrowing in the UK.