# Money for students and young adults > Income · Published 1 June 2026 · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/students/ Markdown mirror: https://moneyguide.org.uk/students/guide.md ## Quick answer From applying for student finance to understanding your first payslip, the years around study and early work bring a run of money firsts. From applying for student finance to understanding your first payslip, the years around study and early work bring a run of money firsts. Get the basics right — how student loans really work, what your payslip means, and why to stay in your workplace pension — and you avoid the most common, costly mistakes. ## Key facts - Student finance has two parts: a tuition fee loan paid to your university and a maintenance loan paid to you. - You repay a student loan at 9% of income above your plan threshold (6% for postgraduate loans), collected through payroll. - Repayments stop automatically if your income falls below the threshold, and the balance is written off after a set period. - In your first job, check your tax code and stay in your workplace pension — opting out means turning down free money. - Scottish, Welsh and Northern Irish students apply through their own student finance body with different maintenance rules. - Apprenticeships are a paid employment route with no tuition fees — see our apprenticeships guide for pay and funding rules. ## Student finance and loans Apply early for student finance through Student Finance England, Wales, Scotland or Northern Ireland. The maintenance loan is means-tested on household income; the tuition fee loan is not. Deadlines are usually May for courses starting that autumn. A student loan behaves more like a graduate contribution than a debt: repayments depend on what you earn, not what you borrowed, so for most people there is no benefit to overpaying. Plan 2 (most 2012–2023 starters), Plan 5 (post-2023 starters) and Plan 1 each have different thresholds and write-off dates. Check your plan on your student loan account before assuming headlines apply to you. Use our student loan calculator to model monthly repayments. ## Living costs, banking and part-time work Student bank accounts often include an interest-free overdraft — useful as a buffer, not as income. Compare the post-graduation overdraft terms before you pick a bank for a freebie. Part-time work under the personal allowance (£12,570 in 2026/27) is usually tax-free if it is your only income. If you work during term and summer, watch your tax code — HMRC sometimes applies an emergency code until you update your details. Bursaries, scholarships and hardship funds from your university sit alongside maintenance loans. Apply through student services; many go unclaimed each year. Disabled Students' Allowance funds equipment and support for study-related disability costs — it is not a loan and does not depend on household income. ## Starting work Your first payslip shows Income Tax, National Insurance and a pension contribution. Check your tax code is right — the wrong one is the most common reason for paying too much tax. Stay in your workplace pension under auto-enrolment: your employer pays in too, so it is rarely worth opting out even on a low salary. Start a small savings habit from your first payday. Graduate schemes and first jobs often bundle relocation, season-ticket loans or share options — read the tax treatment before you accept. Salary sacrifice for pensions or cycle-to-work can cut your tax bill legitimately. ## After graduation — repayments and credit Repayments start the April after you finish or leave your course, but only if income is above your plan threshold. Plan 2 is 9% over £29,385 (2026/27); Plan 5 is 9% over £25,000 with a 40-year write-off. Use our student loan calculator to model your monthly PAYE deduction. Student loans do not appear on your credit file like a credit card, but mortgage lenders may ask about monthly repayments when assessing affordability. Build a credit history responsibly: one well-managed current account, paying mobile and utility bills on time, and avoiding payday loans. See our credit guide for soft-search eligibility checks. ## Frequently asked questions ### Does household income affect student finance? It affects the maintenance loan, which is means-tested on household income. The tuition fee loan is not means-tested. ### Should I opt out of my workplace pension in my first job? Usually no. Your employer and the government both contribute, so opting out throws away free money. Only consider it if you genuinely cannot afford it. ### Should I overpay my student loan? For most graduates, no. Repayments are income-linked and written off after a set period. Overpaying only makes sense if you are a very high earner on a plan where you would otherwise repay the balance in full before write-off. ### What tax code should I have on my first payslip? Most new starters get 1257L (standard personal allowance). Scottish taxpayers see S1257L; Welsh taxpayers C1257L. If you see BR or an emergency code, update your details in your Personal Tax Account. ## Related guides - [/work-earnings/](https://moneyguide.org.uk/work-earnings/) - [/savings/](https://moneyguide.org.uk/savings/) - [/budgeting/](https://moneyguide.org.uk/budgeting/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.