Personal loans for school costs

School costs and where a personal loan fits

Rising course fees and living costs can leave a funding gap even after student finance. In England, undergraduate lending reached £19.8 billion in 2024-25, with total issuance across higher education at £20.7 billion. Forecasts point to a 26% surge by 2029-30 as more people enter university and average loan amounts climb. That backdrop matters because it shapes the decision to use a personal loan for school costs. It is not just about getting the money now. It is about the longer-term impact on your monthly outgoings, your credit profile, and your ability to save for milestones like a home deposit.

Average debt on entering repayment in England is already sizeable at around £48,470. More than 150,000 borrowers now owe over £100,000 in student loans, a reminder that balances can snowball, particularly with interest on newer Plan 5 loans rising as balances grow. Against that context, a personal loan can look straightforward: fixed term, fixed monthly repayments, and funds that can cover equipment, travel, or specific course fees that are not otherwise eligible for student finance.

The question is whether it is the right instrument. Average APRs for £5,000 personal loans sat around 11.13% in April 2025, while £10,000 loans averaged 6.73%. Overdrafts and many credit cards remain costlier. Yet personal loans lack the income-contingent protections of student loans and can tighten your monthly budget immediately. If you already carry average household personal loan debt of around £5,711, adding more could raise your risk of missing payments or limit future credit options.

Understanding APR is not just about percentages - it is about what you will pay in real pounds each month.

A personal loan may suit targeted, short-term educational needs when cheaper or protected funding is unavailable. It is rarely the first port of call for core tuition or living costs where dedicated student finance or bursaries exist. Your decision should balance cost today against flexibility tomorrow.

Bottom line: Borrow for education with purpose, a payoff plan, and a clear view of cheaper alternatives first.

Is this guide right for you?

This is for UK-based learners and parents weighing up how to bridge education costs. If you are in England navigating Plan 2 or Plan 5 terms, or in Scotland, Wales, or Northern Ireland comparing regional offers, you will find practical context here. It is also relevant if you are considering vocational or further education where Advanced Learner Loans or employer funding may apply. If you are exploring a personal loan via a broker like Kandoo, we outline what lenders look for, total costs, and the trade offs so you can make a calm, informed choice.

Ways to cover school costs

1. Student loans for tuition and maintenance

2. Grants, bursaries, and university hardship funds

3. Advanced Learner Loans for eligible further education courses

4. Personal loans from mainstream lenders via a broker like Kandoo

5. 0% purchase credit cards for specific course materials

6. Employer sponsorship or apprenticeship routes

7. Savings or a family contribution

8. Part-time work or side income aligned to study schedules

Pounds and pitfalls at a glance

What you need to qualify

Personal loans are not guaranteed. Lenders assess your affordability and credit profile, looking at income, regular outgoings, existing debts, and electoral roll history. A strong track record of on-time payments and stable employment improves your chances. Students can be approved, but underwriting is stricter without full-time income. You may need to evidence part-time work, a graduate job offer, or a co-applicant. Amounts of £5,000 to £10,000 can attract different pricing, with lower rates often appearing at £10,000 because of market competition. Your region within the UK does not change the core checks, but England’s higher education funding rules can influence how much you need to borrow privately.

As a UK-based retail finance broker, Kandoo connects you with a panel of lenders to help you compare rates and terms without multiple hard searches at the outset. We aim to match your profile to lenders that treat educational purposes fairly and transparently. Approval, APR, and loan size ultimately depend on lender criteria. If you already carry personal loan balances or revolving credit, expect closer scrutiny of disposable income.

From quote to funds in your account

1. Check how much you need and why

2. Review student finance and bursaries first

3. Get a personalised quote with soft credit search

4. Compare APR, term, fees, and total repayable

5. Upload documents to verify income and identity

6. Accept the offer and read the agreement carefully

7. Receive funds to your current account

8. Set up Direct Debit and budget reminders

Quick positives and trade offs

Red flags and smart checks

Rising student loan issuance and higher average debts show how easy it is for balances to build. Add a personal loan and your monthly budget tightens immediately. Average household personal loan debt is already increasing, and unsecured lending across the UK remains elevated. If you expect variable income during term time, a fixed repayment could strain cash flow. Consider the APR gap too: £5,000 loans often cost more than £10,000 in percentage terms, but a larger loan can tempt unnecessary spending. Overdrafts and many credit cards are significantly pricier, so avoid using them as long-term funding for fees or equipment. Where eligible, Advanced Learner Loans can support specific further education courses and may reduce the need for private borrowing. Always model the total repayable and test your budget against a two-point interest rise on other debts to check resilience.

Alternatives worth weighing

1. Maximise maintenance and tuition loans before private credit

2. Apply for grants, bursaries, and hardship funds

3. Consider Advanced Learner Loans for eligible FE courses

4. Look at 0% purchase cards for essential equipment only

5. Explore employer sponsorship or apprenticeships

6. Use savings with a clear emergency buffer

7. Increase part-time income within safe study limits

Common questions answered

Q: Is a personal loan cheaper than a student loan? A: Usually not. Student loans use income-contingent repayments with different interest rules and write-off provisions. Personal loans have fixed repayments and market APRs that can be higher.

Q: Can students get approved without full-time income? A: It is possible but harder. Lenders will assess affordability based on income, benefits, and existing commitments. A co-applicant or stronger credit history can help.

Q: How much can I borrow for school costs? A: Typical personal loans range from £1,000 to £25,000. Borrow only what you need. Pricing can be keener at £10,000, but do not chase a lower APR by taking more debt than required.

Q: What about my credit score? A: A personal loan appears on your credit file and affects utilisation and payment history. Timely payments can help over time, but missed payments damage your score and raise future borrowing costs.

Q: Are overdrafts or credit cards better for small costs? A: They can be useful short term, but overdrafts often carry very high rates and many card balances attract double-digit interest. A 0% purchase card used sensibly can be cheaper for equipment.

Q: Do Advanced Learner Loans replace personal loans? A: Not always. They target specific further education courses for over-19s and may not cover all expenses. They can, however, reduce the need for private borrowing where eligible.

Start with a clear comparison

If a personal loan still fits your plan, compare offers calmly. Kandoo can help you check rates from a range of UK lenders with an initial soft search, then guide you through documents and timelines. Keep your borrowing focused on clear educational outcomes and a repayment plan that survives the unexpected.

Important information

Kandoo is a credit broker, not a lender. Eligibility, rates, and terms depend on individual circumstances and lender assessments. This guide is for information only and does not constitute financial advice. Consider independent advice if you are unsure.