Short-term loans for school payments

Why students are eyeing quick cash for campus

A growing number of UK students are finding that official support does not quite stretch to real life. The maximum Tuition Fee Loan has nudged up to £9,535 for 2025/26, but modest increases have not resolved everyday costs. Maintenance Loans are falling short by roughly £502 a month against typical living expenses, and more than half of students report occasionally skipping meals to cope. When timing is tight and rent, course materials or placement travel are due, it is little surprise that short-term borrowing is on the radar.

The bigger picture helps explain the pressure. New students taking loans rose by just over 6% in 2025/26, and the system is handling more applications earlier in the year. Forecasts suggest undergraduate loan entrants could be 10% higher by 2029/30, with average borrowing for recent starters near £44,690. Repayments will be manageable for many in the long run, with just over half expected to clear their balances entirely. Yet the near term tells a different story. Graduates on around £50,000 with Plan 2 loans face repayments of roughly £170 a month, while those who entered with higher fees and stretched maintenance often feel constrained when costs spike.

Student debts are also concentrating at the top. More than 150,000 borrowers now hold balances above £100,000, and some owe significantly more. Such figures can delay saving, limit mortgage readiness and restrict financial resilience. Meanwhile, unsecured personal loan balances across UK households have crept higher, signalling broader reliance on credit during the cost of living squeeze.

In this context, short-term loans for school payments can look like a practical stopgap. Used carefully, they can bridge a shortfall while you wait for Student Finance or wages. Used carelessly, they can compound stress.

Short-term borrowing should be small, specific and short-lived.

The aim is not to replace student finance, but to smooth timing gaps: a deposit due before maintenance arrives, a laptop for a course module, or commuting costs for a placement. The key is clarity on amount, purpose and exit route.

Who this suits

Short-term loans can be suitable for students and families facing a temporary cashflow mismatch rather than a long-term affordability problem. If your maintenance is delayed, your landlord has brought forward a payment date, or essential course costs arrive unexpectedly, a small, time-bound facility may help you stay on track without missing critical deadlines.

They also suit those who can evidence near-term income or funding that will repay the borrowing quickly. If you have a confirmed maintenance instalment landing next month, a scheduled pay packet from part-time work, or a family transfer, a short-term loan can be repaid before interest builds. If the gap is structural rather than temporary, alternative support routes are likely safer.

Ways to cover a shortfall now

1. Short-term personal loan for a fixed, small amount.

2. 0% purchase credit card with a strict repayment plan.

3. Student overdraft with interest-free buffer from a UK bank.

4. Payment plan with your university for fees or accommodation.

5. Hardship fund or bursary from your university’s student services.

6. Family guarantor or interest-free support agreement.

7. Kandoo brokered finance options tailored to your circumstances.

Pounds and probabilities at a glance

Can you qualify?

Eligibility depends on the product and lender. For short-term loans, lenders typically look at age, residency, income or regular funding, existing debts and your credit file. Many students can provide evidence such as confirmed maintenance schedules, part-time income, or a signed tenancy to demonstrate the purpose of borrowing and a realistic plan to repay. Having a current account, stable contact details and proof of address in the UK helps streamline checks.

If your credit history is limited, a smaller amount over a shorter term can be more achievable. Some lenders will assess affordability using your incoming maintenance or stipend. Where a guarantor is involved, their credit profile and income will be reviewed. If you have recent missed payments or high utilisation on revolving credit, approval may be harder or you may face higher costs.

Kandoo is a UK-based retail finance broker that works with a panel of lenders. We help you compare available options and find a fit for your needs without applying blindly to multiple providers. Matching the loan to your timeline and repayment source is central to responsible borrowing.

From click to cash

1. Check the exact amount you genuinely need.

2. Map your repayment source and repayment date.

3. Compare options via Kandoo’s panel and eligibility.

4. Submit application with accurate, recent documentation.

5. Complete affordability checks and identity verification.

6. Review the offer, APR, fees and total payable.

7. Accept terms, receive funds to your bank account.

8. Repay early if possible to reduce interest.

Weighing it up

Read this before you apply

Short-term borrowing is for specific, urgent needs, not recurring expenses. If your Maintenance Loan is consistently £502 short of monthly costs, a one-off loan will not solve the underlying gap and may create a cycle of dependence. Speak to your university about hardship funds, rent flexibility and bursaries. Ask accommodation providers for temporary payment plans, and explore interest-free student overdrafts.

If you proceed, borrow the smallest amount for the shortest feasible term, and diarise the repayment. Build a simple cashflow view of incoming maintenance or wages against fixed dates for rent, utilities and travel. Keep a buffer for essentials. Avoid stacking debts. If your plan changes, contact the lender before a payment is missed to discuss options.

If you cannot evidence a realistic repayment source, pause and reassess.

Alternative routes

1. University hardship fund or emergency grant.

2. Negotiated rent deferral or instalment plan with accommodation.

3. Interest-free student overdraft from your bank.

4. 0% purchase card used for essentials with strict payoff.

5. Part-time work with guaranteed hours during term.

6. Sell unused tech, books or furniture to raise cash.

7. Family support or guarantor agreement written and time-bound.

FAQs

Q: Are short-term loans cheaper than overdrafts? A: Not usually. Student overdrafts often offer 0% within set limits. Short-term loans carry higher APRs but can be predictable with fixed terms and may be suitable if overdraft capacity is exhausted.

Q: Will this affect my credit score? A: Applications create a hard search. On-time repayments can support your profile, while missed or late payments harm it. Keeping balances low and terms short helps manage impact.

Q: How much can I borrow as a student? A: Typically £200 to a few thousand pounds, depending on affordability. Smaller sums over shorter periods are more likely to be approved and cheaper overall.

Q: What if my Maintenance Loan is delayed? A: If you have confirmation of an upcoming payment, a short-term loan can bridge the gap. Consider asking your university and landlord for temporary flexibility first.

Q: Are there better options for regular shortfalls? A: Yes. Explore budgeting support, part-time income, bursaries, hardship funds and adjusting accommodation. Borrowing repeatedly for monthly costs is a red flag.

Q: How do rising student debts affect me now? A: Large balances and repayment obligations limit financial headroom. With more borrowers carrying over £100,000, careful short-term decisions help avoid adding unnecessary cost.

What to do next

If a small, time-limited loan could prevent missed rent, course disruption or credit damage, compare your options carefully. Kandoo can introduce you to a panel of UK lenders, helping you gauge eligibility and total cost before you commit. Have your documents ready, borrow only what you need, and plan the repayment on day one.

Important information

This guide provides general information only and is not financial advice. Borrowing is subject to status and affordability checks. Terms vary by lender. If you are struggling with debt, seek free, impartial support from organisations like MoneyHelper or StepChange.