How to get a loan as a student

Can I get a loan as a student?

Yes. There are several ways to borrow money as a student outside of your regular Student Finance. A short-term personal loan lender looks at your income and whether you can afford the repayments. Your course and university don’t matter

This guide explains the types of student loan, how they work and what they cost. It also covers when borrowing is the wrong answer.

What types of loans are available for students?

Students who need to borrow usually have six options. They work very differently, so it's worth knowing which one you're actually applying for.

• Personal loans: An unsecured loan repaid in fixed monthly instalments over an agreed term. There are no assets needed, and approval depends on your income and affordability rather than your student status.

• Student Finance: Tuition fee and maintenance loans from the Student Loans Company, repaid only once you earn above a threshold. It's a different system entirely.

• Secured loans: Borrowing against an asset you own, usually a car or property. Rates are often lower, but the lender can take the asset if you fall behind.

• Guarantor loans: A family member or friend agrees to repay if you can't. It can help with a thin credit file, but a missed payment damages their file as well as yours.

• Emergency loans: Short-term borrowing arranged quickly for an urgent cost, such as a broken laptop or a rent shortfall. Read our guide to emergency loans for how these are assessed.

• Master's loans: The Postgraduate Master's Loan from the Student Loans Company is separate from all of the above. It’s not income-assessed and is repaid at 6% of income above its own threshold once you're working (gov.uk).

How to get a student personal loan

You can get a personal loan as a student if you meet a lender’s criteria and can afford the repayments. Payday UK is a credit broker, not a lender. We send your details to a panel of FCA-authorised lenders. You see any offers the lenders make.

Who is eligible for a student personal loan?

Every lender sets its own criteria, so there's no single checklist that applies to all of them. These basics are common to most:

• You're at least 18 years old

• You're a UK resident with a UK bank account and debit card

• You have a regular income. Part-time work, self-employment, a placement salary or a maintenance loan can all count

• The income is evidenced, rather than cash-in-hand with no record behind it

• You have a mobile number and email address the lender can reach you on

Being a student isn't the barrier. What lenders check is whether the income you have is enough to cover the repayments.

How short-term student loans work

The application takes a couple of minutes on a phone, tablet or computer. There’s no paperwork or appointment. Here’s the process at Payday UK:

1. Tell us how much you need to borrow and over how many months

2. We send your details to our panel, and you see any offers the lenders make

3. You compare them and decide. You don’t have to accept an offer.

Checking your eligibility uses a soft search. The lenders on our panel run this when they quote. Other lenders can’t see it, and it won’t affect your credit score. Only a full application leaves a mark they can see. If you’re new to borrowing, see our guide to loans for young people. It covers what lenders look for in a new credit file.

How quickly the money arrives depends on the lender's decision, and then your bank's transfer times. The slow part is usually your bank, not the lender.

We don’t charge you a fee. The lender pays us a commission if you take out a loan.

How much can I borrow as a student?

Our panel covers loans from £50 to £5,000, over terms of 3 to 36 months, and rates from 9.3% APR. Your own quote will show the APR and the total amount repayable that apply to you. Short-term loans are price-capped by the FCA. Read our guide to APR for more on how the cap works.

Borrow only what you can repay from income you can rely on. Every lender checks you can afford the repayments.

Compare the total repayable, not the monthly figure. A longer term lowers the monthly payment but usually raises what you pay by the end of it. The total is the number that tells you what the loan actually costs.

When is a personal loan a good choice for a student?

A short-term loan suits a gap you can see the end of. You should know the amount and when you’ll repay. It tends to work well when:

• You have a short, known gap before your next maintenance instalment or wage

• The cost is one-off, such as a replacement laptop or a deposit, rather than a recurring shortfall

• You've already checked your hardship fund and Student Finance assessment, and there's genuinely nothing left to claim

• You can see exactly which months your repayments fall in, and you have income due in those months

When is a personal loan a bad choice for a student?

Sometimes the honest answer is not to borrow at all. Get advice instead of applying if:

• You'd be borrowing to make a payment on other credit

• The shortfall repeats every month - that's an income problem, not a timing one

• The money is to cover overdue tuition or accommodation payments. Your university has its own process and far more room to move than a lender

• You've been declined more than once and are applying again in hope

• You're already using an overdraft you can't clear before your next instalment arrives

Alternatives to loans for students

A commercial loan isn’t a substitute for Student Finance. Try these student options first, then see our guide to alternatives to payday loans for the rest.

• University hardship funds: Most UK universities have one. Awards are often grants rather than loans, and student services usually handle applications

• A 0% student overdraft: Interest-free within your arranged limit and almost always cheaper than short-term credit. Charges can climb steeply if you go over it.

• A payment plan with your university: Direct arrangements for tuition or accommodation are usually interest-free and worth asking for before you borrow elsewhere.

Common questions

What’s the difference between Student Finance and personal loans for students?

Student Finance doesn’t look at your other borrowing. Once you earn above the threshold, your repayment comes out of your pay. A lender sees that lower take-home pay when it checks affordability.

Can I get a short-term loan as a student with bad credit?

A poor credit score doesn’t rule you out, though approval is never guaranteed. Many students have a thin file rather than a bad one. That means little borrowing history, not missed payments, and lenders weigh it very differently.

At Payday UK, one application sends your details to every lender on our panel. Each lender makes its own decision.

Can I use a short-term loan to pay off my Student Finance?

This isn't something we'd recommend. Student loan repayments stop if your income falls. A commercial loan doesn’t. Swapping one for the other removes that protection.

Will taking out a short-term loan affect my Student Finance?

No. Your maintenance loan is assessed on household income and your tuition fee loan isn't income-assessed at all. Neither looks at your credit commitments. Credit reference agencies don’t hold your Student Finance balance, so lenders can’t see it on your file.

Can I take out a short-term loan as an international student?

Not usually. Most lenders on our panel need UK residency and a UK credit history. Recent arrivals on a student visa usually can’t show this. Talk to your international student adviser, whatever your visa status. Hardship fund rules vary, so check with your university.

What happens if I can’t make a repayment?

Tell the lender before the payment date. A lender that knows in advance can often agree a revised plan. FCA rules say the lender must treat you fairly and take your situation into account. Most lenders charge a fee for a missed payment, and it stays on your credit file for six years. On high-cost short-term loans the FCA caps that fee; see APR explained for how the cap works. StepChange and National Debtline will deal with lenders on your behalf, free of charge.

None of this is financial advice, and a loan isn't always the right answer to a short-term gap. If in doubt, start with your university’s money adviser or one of the helplines above. They're faster and usually cheaper.