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Changing Course: Student Loan Adjustments and Funding Implications

Switching degrees, funding implications, and repeat year eligibility when changing your university course

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Approximately 10% of UK students change their course during their first two years of university. Your funding continues, but there's a critical rule: years spent on your original course count toward your total funding entitlement. Switch after one year of Computer Science to start Medicine? You've used one year of funding, leaving you with five years remaining for the six-year medicine degree—you'll be one year short.

Understanding how Student Finance England calculates remaining entitlement, which types of course changes preserve full funding, and when you might need to self-fund final years is essential for anyone considering switching courses. The debt from your original course doesn't disappear—you keep that tuition and maintenance loan balance—but you can continue borrowing for your new course subject to the year limits.

This guide explains the funding rules, walks through the transfer process, analyzes real-world scenarios showing how debt accumulates when switching, and helps you make informed decisions about whether changing course is worth the financial implications.

Course Changes: What's Possible

UK universities and Student Finance England support course changes—they recognize that students sometimes realize their chosen degree isn't right. The system allows transfers and restarts with continued funding, but with important limitations.

Types of Course Changes:

  • Internal transfer (same university): Switching from one course to another at your current institution. Example: Biology to Chemistry at University of Manchester. Usually processed smoothly with minimal funding disruption.
  • External transfer (different university): Leaving your current university and enrolling in a different course at another institution. Example: History at Nottingham → Law at Bristol. Requires new UCAS application and more complex funding adjustments.
  • Complete restart: Withdrawing from your current course and starting a completely new degree, often after a gap. Example: Dropout from Engineering Year 1, return two years later for English Literature. Years previously attended still count against entitlement.
  • Repeat year: Failing or withdrawing from a year and repeating it, either in same course or different course. May require evidence of compelling personal reasons (CPR) for continued funding.

What You Can Always Do:

  • Change course within your first year with minimal funding impact
  • Transfer between universities if you secure a place through UCAS
  • Switch to a longer course if you have sufficient years of funding remaining
  • Continue getting loans for new course up to your remaining year entitlement
  • Keep all previous student loan debt—it transfers with you to the new course

What Has Restrictions:

  • Switching to a longer course than your remaining funding years (you'll be short)
  • Repeating years due to failure without compelling personal reasons
  • Getting funding if you've already completed a degree (usually limited to +1 year)
  • Changing after completing two years of original course (very limited remaining funding)

Funding Rules and Year Calculations

Student Finance England provides funding for the length of your course plus one additional year, called the "gift year." This extra year is protection against repeating a year or changing course. But once you've used years of funding, they're gone—even if you withdraw or fail.

The Core Funding Formula:

Total Funding Entitlement = Length of Course + 1 Year

3-year degree: 3 + 1 = 4 years of funding

4-year degree: 4 + 1 = 5 years of funding

5-year degree (Architecture): 5 + 1 = 6 years of funding

6-year degree (Medicine): 6 + 1 = 7 years of funding

Critical rule: Your entitlement is based on your current course, but ALL previous years of higher education study count against it, regardless of outcome.

How Years Are Counted:

Years that COUNT against your entitlement:

  • Any year where you received student loan (tuition or maintenance), even if you withdrew
  • Completed years on previous courses
  • Failed years where you received funding
  • Years studying at any UK university in any subject
  • Withdrawn years where funding was paid (even if you left in October)

Years that DON'T COUNT:

  • Years where you withdrew before funding was paid (usually before October census date)
  • Years studied abroad (not at UK institution)
  • Foundation years that weren't funded by Student Finance England
  • Gap years or years out of education
  • Years studying at college (rather than university) if not funded by SFE

Practical Examples of Year Counting:

Example 1: Clean transfer after Year 1

• Started: 3-year Economics (entitlement: 4 years)

• Completed: Year 1 (used 1 year)

• Switching to: 3-year History (requires 3 years)

Remaining funding: 3 years. ✓ Fully funded.

Example 2: Transfer to longer course after Year 1

• Started: 3-year Psychology (entitlement: 4 years)

• Completed: Year 1 (used 1 year)

• Switching to: 5-year Architecture (requires 5 years)

Remaining funding: 3 years. ✗ You'll be 2 years short. Must self-fund final 2 years (£18,500 tuition alone).

Example 3: Transfer after completing 2 years

• Started: 3-year English (entitlement: 4 years)

• Completed: Years 1 & 2 (used 2 years)

• Switching to: 3-year Law (requires 3 years)

Remaining funding: 2 years. ✗ You'll be 1 year short. Must self-fund final year.

Example 4: Second degree after completing first

• Completed: 3-year Business degree (used 3 years)

• Original entitlement: 4 years (3+1)

• Applying for: 3-year Computer Science

Remaining funding: 1 year only. Generally not eligible for second undergraduate degree funding except in specific circumstances (teaching, healthcare).

Check Your Remaining Entitlement:

Before changing course, you can check your remaining funding years:

  • Log into your Student Finance England account
  • View your "Previous Study" section
  • Calculate: Original entitlement - Years used = Years remaining
  • Compare remaining years to length of new course
  • If short, you'll need to self-fund or find alternative financing

Types of Course Changes

Different types of course changes have different implications for funding, logistics, and your accumulated debt. Here's how each works:

Internal Transfer (Same University)

Switching to a different course at your current institution is the smoothest type of change. The university handles most administrative work, and funding typically continues seamlessly.

Process:

  • 1. Speak with your current department and target department
  • 2. Apply through your university's internal transfer system
  • 3. If accepted, complete internal transfer paperwork
  • 4. Inform Student Finance England of course change (usually university does this)
  • 5. Student Finance updates your account with new course details

Funding implications:

  • • Usually no interruption to funding
  • • Years already completed count toward new course entitlement
  • • Tuition and maintenance loan balances carry forward
  • • New course length determines remaining entitlement

Best for: Students who like their university but realize their subject isn't right. Common in first year when students discover their interests.

External Transfer (Different University)

Moving to a different university requires a new UCAS application and coordination between institutions and Student Finance England.

Process:

  • 1. Apply through UCAS as a "transfer student"
  • 2. Disclose previous study on your application
  • 3. If accepted, formally withdraw from current university
  • 4. Notify Student Finance England within 5 days of withdrawal
  • 5. Apply for funding at new university (may be treated as new application)
  • 6. Provide evidence of previous study to avoid overpayment

Funding implications:

  • • Risk of funding gap if withdrawal and new enrollment don't align
  • • Must inform SFE to prevent being charged for both institutions
  • • All previous loan debt transfers to new institution's records
  • • May need to reapply for maintenance loan at new institution
  • • Timing is critical—wrong timing can cost you months of funding

Best for: Students who want both a different course AND a different university environment. Requires advance planning.

Complete Restart (After Withdrawal/Break)

Withdrawing from your course and starting fresh, possibly after a break. This is different from transfer because there's a gap between courses.

Process:

  • 1. Formally withdraw from current course (if still enrolled)
  • 2. Notify Student Finance England of withdrawal
  • 3. Take gap time if needed (months or years)
  • 4. Apply through UCAS for new course
  • 5. Apply for student finance, declaring all previous study
  • 6. SFE calculates remaining entitlement based on years already funded

Funding implications:

  • • Previous funded years count against new course entitlement
  • • If you withdrew early (before census date), that year might not count
  • • Gap years don't use funding—you can take time to decide
  • • All previous debt remains and will compound with new borrowing
  • • May need to provide evidence of why you're restarting

Best for: Students who need a break to reconsider their path, or those who tried university and weren't ready. The gap can provide clarity.

Changing from 3-Year to 4-Year Course (e.g., adding placement year)

Switching from a standard 3-year degree to a 4-year program (often with industry placement) or adding a sandwich year mid-course.

Process:

  • 1. Request course change to placement/sandwich year version
  • 2. Usually done end of Year 1 or during Year 2
  • 3. University updates your course registration
  • 4. Apply to Student Finance for placement year funding (if applicable)

Funding implications:

  • • Placement years usually have reduced tuition (£1,850 instead of £9,250)
  • • You still get maintenance loan during placement
  • • Uses one year of funding entitlement
  • • But you earn salary during placement, often £14k-£22k
  • • Can reduce total debt if planned early

Best for: Students wanting practical experience and to earn during degree while slightly extending their studies. Often financially beneficial despite extra year.

Financial Implications of Switching

Course changes always increase your total student debt because you're borrowing for additional years. Understanding the financial impact helps you make informed decisions.

The Debt Accumulation Reality:

When you change course, you don't get a "refund" or cancellation of previous loans. You keep all debt from your original course and add new debt from your new course.

Example: Switching after Year 1

Year 1 - Original Course (Biology):

• Tuition loan: £9,250

• Maintenance loan: £9,500

• Total borrowed: £18,750

• With one year interest: ~£19,500

Years 2-4 - New Course (Law):

• Tuition loan: £9,250 × 3 = £27,750

• Maintenance loan: £9,500 × 3 = £28,500

• Total borrowed: £56,250

Total debt at graduation: ~£75,750

(Compared to £55,000 if you'd started Law directly. You're carrying £20k extra debt from the switch.)

Does Extra Debt Matter? It Depends on Your Career Path:

If you'll reach 40-year write-off (£25k-£40k career):

Extra debt makes little practical difference. Whether you graduate with £55k or £75k, you'll pay 9% of income above £25k for 40 years, then write-off. Your total paid depends on salary, not starting debt. The £20k extra debt just gets written off alongside everything else.

Example: Earn £35k consistently for 40 years = pay ~£36k total regardless of whether you owe £55k or £75k.

If you're borderline (£45k-£55k career):

Extra debt might push you from full repayment to write-off. Starting with £55k debt, you might repay by year 35. Starting with £75k, you might reach write-off with balance remaining. This could actually save you money total.

Paradoxically, the course change might reduce total paid if it pushes you over the write-off threshold.

If you'll definitely repay (£60k+ career):

Extra debt costs you real money. £20k extra starting debt becomes £30k+ with interest by the time you repay. You'll pay this full amount plus interest.

Example: Starting with £75k instead of £55k might add 3-4 years to repayment timeline and cost £25k-£35k more total.

Hidden Costs of Switching:

  • Lost time: An extra year means one less year earning salary (opportunity cost ~£25k-£35k)
  • Accommodation: Extra year of rent and living costs (£8k-£12k depending on location)
  • Interest accumulation: Original debt accrues interest while you complete new degree
  • Delayed career start: Graduate one year later, potentially affecting long-term career progression
  • Parental contribution: If parents are supporting you, they fund extra years

When the Cost Is Worth It:

Switching courses can be financially justified if:

  • New course has significantly better earning potential (e.g., humanities → medicine/law)
  • You're miserable in current course and likely to drop out entirely without switch
  • Current course has very poor graduate employment rates
  • You're switching early (Year 1) minimizing wasted years
  • You're heading for write-off anyway so extra debt is irrelevant

Repeat Year Eligibility and Compelling Personal Reasons

If you fail or need to repeat a year, getting continued funding depends on whether you have "compelling personal reasons" (CPR) for the poor academic performance. Without CPR, you might not get funding to repeat.

Compelling Personal Reasons (CPR) - What Qualifies:

Student Finance England requires evidence of circumstances beyond your control that affected academic performance:

  • Serious illness or accident: Hospitalization, surgery, chronic illness diagnosis, mental health crisis requiring treatment. Need GP/consultant letters documenting impact on studies.
  • Death of close family member: Parent, sibling, partner, or close dependent during academic year. Death certificate and evidence of impact (counseling records, university support documents).
  • Family crisis: Severe illness of family member requiring your care, family breakdown, domestic situation affecting studies. Social services or healthcare professional documentation helpful.
  • Other exceptional circumstances: Victim of crime, serious accident, major financial crisis beyond your control. Police reports, court documents, or professional evidence required.

What Usually DOESN'T Qualify as CPR:

  • General difficulty with course material or finding it harder than expected
  • Poor time management or not attending lectures/seminars
  • Working part-time jobs (unless extreme circumstances)
  • Relationship breakups (unless involving abuse/crisis)
  • Deciding the course isn't right for you
  • Financial difficulties from lifestyle choices
  • Minor illnesses or short-term issues

The CPR Application Process:

  1. Document everything: Keep all medical letters, certificates, university support service records, counseling attendance, GP notes, specialist letters, etc.
  2. Notify university: Tell your department and student support about circumstances as they happen. Get documentation from university confirming they were aware.
  3. Apply for funding repeat year: Submit new student finance application marking it as repeat year and indicating CPR.
  4. Provide evidence: Submit all supporting documentation to Student Finance England. Write clear cover letter explaining timeline of circumstances and impact on studies.
  5. Await decision: SFE reviews and decides if CPR justified. They may request additional evidence or clarification.

Important: Apply early. Don't wait until results day—submit CPR evidence as soon as you know you'll need to repeat.

If CPR Is Refused:

If Student Finance England refuses your CPR claim and won't fund a repeat year, your options:

  • Appeal the decision: You can request reconsideration with additional evidence
  • Self-fund repeat year: Pay £9,250 tuition + living costs yourself or through family
  • Take a loan elsewhere: Bank loan or career development loan (expensive, not recommended)
  • Withdraw and don't repeat: Accept the failed year and pursue other options
  • Change course: If you have remaining funding years, apply to different course instead

Repeat Year Funding If CPR Approved:

When CPR is accepted:

  • You receive full tuition and maintenance loan for the repeat year
  • The repeated year DOES count against your total entitlement
  • You effectively use your "gift year" for the repeat
  • Your debt increases by the cost of the repeat year (~£18k-£22k)
  • If you fail again, you almost certainly won't get further funding

The Transfer Process Step-by-Step

Successfully changing course requires coordination between you, your current university, your new university (if applicable), and Student Finance England. Here's exactly how to navigate it:

Internal Transfer Process (Same University):

1

Research and Decide

Check new course requirements, speak with department heads, understand if you can transfer credits. Most important: verify you have enough funding years remaining.

2

Meet with Student Support

University student support services can advise on transfer process, funding implications, and help coordinate the change. They're experienced with course changes.

3

Submit Internal Transfer Application

Complete your university's internal transfer form. Include reasons for change, academic record, and any supporting information. Target department reviews.

4

Acceptance and Registration

If accepted, university updates your course registration. This usually happens within 1-2 weeks. You're now officially on the new course.

5

Funding Update

University notifies Student Finance England of course change. SFE updates your account. Check your online account to confirm new course details and remaining entitlement.

Timeline: Internal transfers often complete within 2-4 weeks if done early in academic year. Minimal funding disruption expected.

External Transfer Process (Different University):

1

Research Target Universities

Identify universities accepting transfer students. Some courses don't accept transfers. Check entry requirements—you'll need to meet standard entry criteria.

2

Apply Through UCAS

Submit UCAS application for desired course. You must declare all previous study. Universities can see your academic history. Explain your reasons for transferring in personal statement.

3

Notify Current University

Once you receive and accept an offer, formally notify your current university of withdrawal. Get written confirmation of withdrawal date—crucial for funding.

4

Inform Student Finance England IMMEDIATELY

Within 5 days of withdrawal, notify SFE. Provide details: withdrawal date, new university, new course start date. Request transfer of funding to new institution. This is CRITICAL—delays cause funding gaps.

5

Apply for Funding at New University

Submit student finance application for new course. May be treated as continuation or new application depending on circumstances. Declare all previous study to ensure correct entitlement calculation.

6

Enroll and Confirm Funding

Complete enrollment at new university. Confirm with SFE that funding is active. Check first payment dates for both tuition and maintenance loan.

Timeline: External transfers take 6-12 weeks minimum. Plan ahead—ideally complete before start of new academic year to avoid funding gaps.

Critical Timing Considerations:

  • Census date matters: If you withdraw before your university's census date (usually late October), that year might not count against your entitlement. After census date, it definitely counts.
  • Mid-year transfers are difficult: Most transfers happen between academic years. Mid-year transfers (January) have complications with funding and course alignment.
  • Funding gaps: If withdrawal from old university and enrollment at new university don't align perfectly, you may have months without maintenance loan income. Budget for this.
  • Application deadlines: UCAS deadlines for transfers vary by university. Some have rolling admission, others have strict deadlines. Research early.

Documents You'll Need:

  • Written confirmation of withdrawal from current university (with effective date)
  • Academic transcript showing courses taken and grades
  • UCAS acceptance for new course (if external transfer)
  • Evidence of previous student finance (your SFE customer reference number)
  • ID documents (passport, birth certificate) for funding application
  • Bank details for new maintenance loan payments
  • Evidence of CPR if repeating year due to failure

Strategic Considerations: Should You Switch?

Changing course is a significant decision with long-term implications. Here's a framework for deciding whether to switch:

Good Reasons to Change Course:

  • Wrong subject choice: You've realized your passion/skills lie elsewhere. Better to switch early than force through three years of misery.
  • Poor career prospects: Research shows your current course has weak graduate employment. New course has significantly better outcomes.
  • Unmanageable difficulty: Despite genuine effort, the course is beyond your ability (e.g., discovered you hate/can't do lab work in Chemistry).
  • Clear alternative path: You've identified a specific course that better matches your goals and abilities.
  • Early timing: You're still in Year 1, minimizing wasted time and money.

Poor Reasons to Change Course:

  • Temporary difficulty: One bad module or semester doesn't mean you should quit. Most courses have challenging periods.
  • Social reasons: Not liking your coursemates or wanting to join friends on different course. Social circles change and adapt.
  • Single lecturer: Disliking one professor isn't reason to switch—you won't have them forever.
  • Grass is greener syndrome: Every course has pros and cons. Switching won't make university perfect.
  • Late timing: Switching in Year 3 means restarting—that's 6 years for a 3-year degree. Rarely worth it.

Questions to Ask Yourself:

  1. Is this a temporary feeling or fundamental mismatch? Wait at least one full semester before deciding. First-year adjustment is hard for everyone.
  2. Have I used university support services? Academic advisors, mental health services, and student support can help you succeed in your current course.
  3. What will the new course give me that current course can't? Be specific. "I'll be happier" isn't enough—what exactly will be different?
  4. Can I afford the extra year(s)? Not just student loans, but accommodation, opportunity cost of delayed career start.
  5. Am I switching TO something or AWAY from something? Running away from difficulty often leads to same issues elsewhere. Moving toward a clear goal is different.
  6. What do my parents/supporters think? If they're financially supporting you, their view matters. They'll fund extra years.
  7. Will I regret not trying harder at current course? Sometimes perseverance through difficulty is more valuable than switching.

Alternative to Switching: Module Changes and Minor Adjustments

Before committing to a full course change, consider:

  • Change optional modules: Most courses let you choose electives. Pick ones that interest you more.
  • Transfer to related course: Psychology → Neuroscience, or Business → Economics might preserve more credits
  • Add a minor: Keep your main degree but add complementary minor field
  • Take a year out: Sometimes a break helps you return refreshed and committed
  • Focus on graduate prospects: Your undergraduate degree doesn't dictate career—many graduates work in unrelated fields

Common Scenarios and Outcomes

Here are real-world scenarios showing how course changes play out:

Scenario 1: Early Internal Transfer (Ideal Case)

Situation: Sarah started Computer Science but realized after one semester she preferred Business. She transferred internally at her university.

Financial outcome:

  • • Year 1 CS: £18,750 borrowed (tuition + maintenance)
  • • Years 2-4 Business: £56,250 borrowed
  • • Total debt: £75,000 (vs £56,250 if started Business)
  • • Extra cost: £18,750 plus interest
  • • Graduated on time (no delay)

Analysis: Relatively low cost for finding the right path. No delay to graduation. If Sarah's heading for write-off career, the extra £18k doesn't matter practically.

Scenario 2: External Transfer After Year 1

Situation: James studied History at a low-ranked university, transferred to Law at a Russell Group university after Year 1.

Financial outcome:

  • • Year 1 History (cheaper city): £17,500 borrowed
  • • Years 2-4 Law (London): £66,816 borrowed
  • • Total debt: £84,316
  • • Lost 3 months rent overlap (£1,800)
  • • Starting corporate law job at £50k

Analysis: High debt but strong career prospects. Law degree from Russell Group has significantly better employment than History at lower-ranked university. The extra debt (~£28k) will likely be repaid given career path, but the career upgrade justifies the cost.

Scenario 3: Complete Restart After Withdrawal

Situation: Emily started Engineering, dropped out in Year 2 due to mental health crisis, took 18 months off, returned to study English Literature.

Financial outcome:

  • • Years 1-2 Engineering: £37,500 borrowed (incomplete)
  • • Years 1-3 English: £56,250 borrowed
  • • Total debt: £93,750
  • • Gap year: No additional debt but 18 months delayed
  • • Career: Teaching (£28k-£42k)

Analysis: High debt (£93k) but will definitely reach write-off as a teacher. Teaching salary means she'll pay similar total whether she owes £60k or £93k. The gap year was necessary for health recovery. Total paid will be ~£35k-£45k over 40 years regardless of starting debt.

Scenario 4: Failed Year Without CPR (Problematic)

Situation: Mark failed Year 2 of Physics due to poor attendance and not studying. No compelling personal reasons. Applied to repeat—funding denied.

Financial outcome:

  • • Years 1-2 borrowed: £37,500
  • • No degree obtained
  • • Options: (a) Self-fund repeat year at £9,250 + living costs, (b) Leave without degree
  • • Chose to leave, works in retail management

Analysis: £37,500 debt with no degree. Still repays 9% of income over £25k for 40 years. At £32k salary, pays ~£630/year for 40 years = ~£25k total, then £12k write-off. Painful outcome—debt without qualification. This illustrates importance of taking degree seriously and not relying on repeat year as safety net.

Scenario 5: Switching to Medicine After Year 1 (Short Funding)

Situation: Lucy studied Biology Year 1, transferred to 6-year Medicine program.

Financial outcome:

  • • Year 1 Biology: £18,750 borrowed (entitlement: 4 years, used 1, remaining: 3)
  • • Medicine requires 6 years funding
  • • Gets funding for Years 1-3 of Medicine only
  • • Must self-fund Years 4-6: £27,750 tuition + £28,500 living = £56,250
  • • Parents provided funding for final 3 years
  • • Total debt: £75,000 (Years 1-4). Self-funded: £56,250

Analysis: Medicine has excellent career prospects (consultant salary £88k-£140k), so the investment is justified if family can afford it. Without family support, this switch would be impossible. NHS bursaries for final years of medicine help some students but don't cover full gap. This scenario shows why switching to longer courses is financially complex.

Course changes are possible but have lasting implications

Switch early if you must, understand your remaining funding entitlement, and make informed decisions weighing extra debt against career prospects. The "gift year" exists to give you flexibility—use it wisely. Your total debt accumulates from all years of study, but whether it matters financially depends entirely on your eventual career path.

👩‍🎓

Dr. Lila Sharma

UK Education Policy Specialist

With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.