What is the Welsh maintenance grant and how much can I get?

The Welsh Government Learning Grant (WGLG) is non-repayable support for living costs. Every eligible Welsh student receives at least £1,000 per year regardless of household income. Students from households earning £18,370 or less receive the maximum grant of £8,100 (living away from home). The grant reduces on a sliding scale for incomes between £18,371-£59,200. All Welsh students receive the same total support (grant + loan combined), only the split varies by income.

What is the £1,500 partial cancellation scheme in Wales?

The Welsh Government partial cancellation scheme cancels up to £1,500 from your first maintenance loan balance when you start repaying. It applies to full-time undergraduate maintenance loans taken from 2010/11 onwards. You trigger the cancellation by making your first repayment (minimum £5) - this can be a PAYE repayment or voluntary payment. The scheme is unique to Wales and saves graduates £1,500 plus all the interest that would have accumulated on that amount.

Does Wales use Plan 2 or Plan 5 student loans?

Wales uses Plan 2 for student loan repayments, the same system as England's legacy borrowers. While England introduced Plan 5 for students starting from 2023, Wales has continued with Plan 2. Plan 2 has a £27,295 repayment threshold, 9% repayment rate, RPI to RPI+3% interest rates based on income, and a 30-year write-off period. The Welsh Government is reviewing whether to adopt Plan 5 in the future.

How do Welsh student loans compare to England?

Welsh students have significant advantages over English students: Every Welsh student gets at least £1,000 in grants (England: £0). Low-income Welsh students can receive up to £8,100 in grants (England: £0). Welsh students benefit from the £1,500 partial cancellation (England: none). Wales uses Plan 2 with a £27,295 threshold vs England's Plan 5 £25,000 threshold. A Welsh student from a low-income household saves approximately £19,500 vs an English student over a 3-year degree.

What is the Plan 2 repayment threshold in Wales?

The Plan 2 repayment threshold in Wales for 2025/26 is £27,295 per year (£2,274 per month or £524 per week). Welsh graduates repay 9% of income above this threshold. This is £2,295 higher than England's Plan 5 threshold of £25,000, meaning Welsh graduates start repaying at higher salaries compared to new English graduates.

How much can I borrow for living costs in Wales?

Welsh students can receive up to £12,345 total for living costs if living away from home (£10,480 at parental home, £15,415 in London). This combines maintenance grants and loans. All Welsh students receive the same total amount regardless of household income - only the grant/loan split varies. Lower-income households receive more as grant (up to £8,100) and less as loan, while higher-income households receive minimum £1,000 grant with the rest as loan.

How do I maximize the £1,500 cancellation in Wales?

To maximize your £1,500 cancellation: Wait until you've borrowed at least £1,500 (typically after first year), then make a minimum £5 voluntary repayment online. Don't pay off your entire first year loan before triggering the cancellation. The cancellation applies to your first maintenance loan only and can only be claimed once. Making this strategic £5 payment early saves you £1,500 plus decades of interest accumulation.

Are Welsh tuition fees the same as England?

Welsh tuition fees are capped at £9,000 per year for 2025/26 (England: £9,250). However, unlike England, Welsh students receive substantial maintenance grants and the £1,500 cancellation scheme, significantly reducing overall debt burden. Welsh students can get tuition fee loans to cover the full £9,000, paid directly to the university.

What postgraduate funding is available in Wales?

Wales offers the most generous postgraduate funding in the UK: up to £19,255 for Masters students (2025/26). This is £7,088 more than England (£12,167) and £5,355 more than Scotland (£13,900). Welsh postgraduate funding is non means-tested, paid directly to students, and can be used for tuition fees or living costs. Repayments are 6% of income above £21,000 threshold.

Can English students get Welsh maintenance grants?

No, Welsh maintenance grants and the £1,500 cancellation scheme are only available to students ordinarily resident in Wales who have lived in the UK for at least 3 years before their course starts. English students studying in Wales apply through Student Finance England and follow England's loan system (no grants, no cancellation). Only Welsh-domiciled students benefit from Wales's grant system, regardless of where in the UK they study.

Wales Student Finance: Grants, Loans & £1,500 Cancellation Explained

Understanding Wales's unique student finance system: maintenance grants, Plan 2 loans, and the partial cancellation scheme

Wales operates a distinctive hybrid student finance model that combines repayable loans with non-repayable maintenance grants, offering more direct support than England while maintaining tuition fees similar to the English system. Welsh students benefit from guaranteed minimum grants and a unique £1,500 partial loan cancellation scheme unavailable elsewhere in the UK.

Administered by Student Finance Wales (SFW), the Welsh system provides every eligible full-time undergraduate with at least £1,000 in non-repayable grant support annually, with students from lower-income households receiving up to £8,100 in grants. This grant-and-loan combination aims to reduce overall debt burden while ensuring all Welsh students receive equal total support.

Wales's Unique Advantage: Every Welsh student gets at least £1,000 in grants (free money), plus up to £1,500 cancelled from their loan balance after making their first repayment. This combination significantly reduces lifetime debt compared to England.

Wales Student Finance System Overview

Wales's student finance system occupies a middle ground between Scotland's free tuition model and England's high-fee, high-loan system. Welsh students pay tuition fees (up to £9,000 for 2025/26), but receive substantial grant support for living costs and benefit from the partial cancellation scheme.

Wales Student Finance Core Features

Universal minimum grant: Every eligible Welsh student receives £1,000 non-repayable grant annually, regardless of household income
Income-based grants: Students from households earning under £18,370 can receive up to £8,100 in grants (2025/26)
Equal total support: All Welsh students receive the same total funding (grants + loans combined) regardless of income - only the grant/loan ratio varies
£1,500 partial cancellation: Welsh Government cancels up to £1,500 from first maintenance loan when repayments begin
Plan 2 repayment terms: Same repayment structure as England (£27,295 threshold, 30-year write-off)

Student Finance Wales: Administration

Student Finance Wales (SFW) is part of the Student Loans Company but operates under Welsh Government policy. SFW serves:

Welsh-domiciled students studying anywhere in the UK
Students ordinarily resident in Wales for at least 3 years before course start
Welsh students on bilingual applications (available in Welsh and English)

Wales 2025/26 Funding Summary

Support Type	Living Away from Home	Living at Parental Home	London
Total Maximum Support	£12,345	£10,480	£15,415
Minimum Grant (All Students)	£1,000	£1,000	£1,000
Maximum Grant (Income ≤£18,370)	£8,100	£6,885	£10,124
Maximum Loan (Remaining Balance)	£11,345	£9,480	£14,415
Tuition Fee Loan	Up to £9,000	Up to £9,000	Up to £9,000

Understanding Wales's "Equal Support" Model:

A Welsh student from a household earning £15,000 and a student from a household earning £40,000 both receive £12,345 total for living away from home. The difference: the lower-income student gets £8,100 as grant + £4,245 as loan, while the higher-income student gets £1,000 grant + £11,345 loan. Same total support, different grant/loan split.

Calculate Your Wales Plan 2 Repayments

Welsh Maintenance Grants: Non-Repayable Support

The Welsh Government Learning Grant (WGLG) is the flagship of Wales's student finance system, providing direct, non-repayable support that significantly reduces debt burden for Welsh students.

Who Gets Welsh Maintenance Grants?

All eligible Welsh students receive grants, but the amount varies by household income:

Welsh Maintenance Grant Tiers (2025/26 - Living Away from Home):

Household income £18,370 or less: £8,100 maximum grant
Household income £18,371-£59,200: Sliding scale - grant reduces by £1 for every £6.937 increase in income
Household income over £59,200: £1,000 minimum grant (everyone gets this!)

Grant Calculation Examples

Example 1: Household income £18,370 or below

Welsh Maintenance Grant: £8,100
Maintenance Loan: £4,245
Total support: £12,345
Non-repayable amount: £8,100 (66%)

Example 2: Household income £25,000

Income above £18,370: £6,630
Grant reduction: £6,630 ÷ 6.937 = £955.49
Welsh Maintenance Grant: £8,100 - £955.49 = £7,144.51
Maintenance Loan: £5,200.49
Total support: £12,345
Non-repayable amount: £7,144.51 (58%)

Example 3: Household income £70,000+

Welsh Maintenance Grant: £1,000 (minimum)
Maintenance Loan: £11,345
Total support: £12,345
Non-repayable amount: £1,000 (8%)

Why Wales's Grant System Matters

Unlike England where all maintenance support is loans, Wales's grants provide genuine free money:

Grants never need to be repaid
No interest accrues on grants
Lower overall debt at graduation
Reduced lifetime repayment burden
Helps low-income students more than high earners

Wales vs England Grant Comparison:

A Welsh student from a household earning £18,000 receives £8,100 in grants over the year. An English student from the same household receives £0 in grants - all maintenance support is loans. Over a 3-year degree, that's £24,300 the Welsh student never has to repay.

Additional Welsh Grants

Beyond the standard maintenance grant, Welsh students can apply for:

Parents' Learning Allowance: Up to £1,915 for students with dependent children
Childcare Grant: Up to £9,120 per year for registered childcare costs
Adult Dependants' Grant: Up to £3,407 if you financially support an adult
Disabled Students' Allowances: Up to £34,000 for disability-related study costs
Special Support Grant: Up to £5,161 for specific circumstances (single parents, over 60, etc.)

Plan 2 in Wales: Repayment Terms

Welsh students repay their loans under Plan 2 terms - the same system as England's legacy borrowers (2012-2023 starters). This means Wales continues using Plan 2 while England has moved to Plan 5 for new students from 2023 onward.

Wales Plan 2 Repayment Parameters

Repayment threshold: £27,295 per year (£2,274 monthly, £524 weekly) for 2025/26
Repayment rate: 9% of income above the threshold
Interest rate: Variable from RPI (£27,295 or below) to RPI+3% (£49,130+)
Write-off period: 30 years after the April you became eligible to repay
Repayment start: April after you leave or complete your course

Wales Plan 2 Repayment Examples

Welsh graduate earning £35,000/year:

Income above £27,295 threshold: £7,705
Annual Plan 2 repayment: 9% of £7,705 = £693.45
Monthly deduction via PAYE: £57.79
Interest rate at this salary: Approximately RPI + 1.2%

Welsh graduate earning £50,000/year:

Income above £27,295 threshold: £22,705
Annual Plan 2 repayment: 9% of £22,705 = £2,043.45
Monthly deduction via PAYE: £170.29
Interest rate: RPI + 3% (maximum)

Plan 2 Interest Rate Structure in Wales

Wales uses Plan 2's progressive interest rate system:

While studying: RPI + 3% on outstanding balance
After graduation, earning £27,295 or less: RPI only
Earning £27,295 to £49,130: Progressive scale from RPI to RPI + 3%
Earning over £49,130: RPI + 3% (maximum rate)

As of September 2025, RPI is 3.2%, meaning Plan 2 rates range from 3.2% to 6.2% depending on income.

Why Wales Hasn't Adopted Plan 5

While England introduced Plan 5 in August 2023 with lower interest but longer write-off (40 years) and lower threshold (£25,000), Wales has maintained Plan 2. The Welsh Government is reviewing whether to adopt Plan 5 or continue with Plan 2, considering:

Plan 2's higher threshold (£27,295 vs £25,000) benefits lower-middle earners
Plan 2's 30-year write-off is 10 years shorter than Plan 5's 40 years
Wales's grant system already provides better support than England
Political considerations about maintaining distinct Welsh policy

Calculate Your Plan 2 Repayments

£1,500 Partial Cancellation Scheme

Wales's partial cancellation scheme is a unique benefit unavailable to students in England, Scotland, or Northern Ireland. The Welsh Government cancels up to £1,500 from your first maintenance loan balance when you start making repayments - effectively free money that reduces your lifetime debt.

How the £1,500 Cancellation Works

According to official Welsh Government guidance, the scheme operates as follows:

Key Rules:

Applies to maintenance loans taken out from academic year 2010/11 onwards
Full-time undergraduate loans only (not part-time or postgraduate)
Cancels up to £1,500 from your first maintenance loan balance
Triggered when you make your first repayment (minimum £5)
You can only receive this cancellation once
Works with both statutory PAYE repayments and voluntary repayments

Partial Cancellation Examples

Example 1: Single-year loan, full cancellation

First year maintenance loan: £2,500
Total loan balance: £2,500 (plus interest)
First repayment made: £200
Cancellation applied: £1,500
Remaining balance: £800 (plus interest)

Example 2: Multi-year loan, partial cancellation

Maintenance loan taken each year: £1,000 × 4 years = £4,000
First repayment made: £200 (split £50 per year)
First year loan after repayment: £950
Cancellation applied: £950 (cannot exceed first year balance)
Remaining total balance: £3,050 (plus interest)

Example 3: Small first loan

First year maintenance loan: £1,200
First repayment made: £100
First year balance after repayment: £1,100
Cancellation applied: £1,100 (maximum is first year balance)
First year loan: £0

Maximizing Your Cancellation

Strategic tips for getting the full £1,500 benefit:

Wait until you've borrowed £1,500+: If you make a £5 voluntary repayment after borrowing only £500, you'll only get £495 cancelled (not £1,500)
Make a voluntary repayment early: You can trigger the cancellation with just £5 payment as soon as you graduate
Don't pay off your entire first year loan in one go: If you pay off the full balance before triggering cancellation, you get £0 cancelled
Applies even if you're not earning: You don't need to be making PAYE repayments - a £5 voluntary payment works

Smart Strategy:

Once you've received at least £1,500 in maintenance loan payments (typically after your first year), make a £5 voluntary repayment online. The Welsh Government will immediately cancel £1,500 from your balance. This simple action saves you £1,500 plus all the interest that would have accumulated on that amount over 30 years.

Scheme Status and Future

The partial cancellation scheme has been renewed annually since 2010/11 and is currently confirmed for 2024/25 academic year. While continuation for 2025/26 is "pending confirmation" from the Welsh Government, the scheme has been consistently renewed every year since its introduction.

Wales vs Other UK Nations

Wales's hybrid grant-loan system creates a distinctive position between Scotland's free tuition and England's high-debt model.

Total Debt Comparison (3-Year Degree)

Low-Income Household (£18,000/year):

Wales: £27,000 tuition + £12,735 maintenance loans - £1,500 cancellation = £38,235 total debt
England (Plan 5): £27,750 tuition + £30,000+ maintenance = £57,750+ total debt
Scotland: £0 tuition + £21,000 maintenance = £21,000 total debt
Wales saves £19,515 vs England! (Grants + cancellation)

Higher-Income Household (£70,000/year):

Wales: £27,000 tuition + £34,035 maintenance - £1,500 cancellation = £59,535 total debt
England (Plan 5): £27,750 tuition + £30,000+ maintenance = £57,750+ total debt
Scotland: £0 tuition + £24,000 maintenance = £24,000 total debt
Wales similar to England but still gets £1,000 grants + £1,500 cancellation

Comparative Repayment Analysis

Graduate earning £35,000 across UK nations:

Nation	Plan	Annual Repayment	Monthly
Wales	Plan 2	£693.45	£57.79
England	Plan 5	£900	£75
Scotland	Plan 4	£202.95	£16.91
N. Ireland	Plan 1	£1,167	£97.25

Wales's Advantages

Universal £1,000 minimum grant (England: £0)
Up to £8,100 grants for low-income students (England: £0)
£1,500 partial cancellation scheme (unique to Wales)
Higher repayment threshold than England's Plan 5 (£27,295 vs £25,000)
Shorter write-off than England's Plan 5 (30 vs 40 years)

Wales's Disadvantages

Still pay tuition fees (unlike Scotland)
Higher debt than Scotland's maintenance-only model
Plan 2's variable interest (RPI to RPI+3%) means high earners pay more interest than Scotland's Plan 4
Grants taper off quickly for middle-income families

Compare Wales with Other UK Nations

Postgraduate Funding in Wales

Wales offers distinctive postgraduate support combining loans and grants, with significantly higher funding available than England or Scotland.

Welsh Postgraduate Loan System

Wales Postgraduate Support (2025/26):

Maximum funding: Up to £19,255 (includes loan + grant elements)
Non means-tested: Amount not based on household income
Paid to you: Money paid directly to student, not university
Flexible use: Can cover tuition fees, living costs, or both
Repayment threshold: £21,000 per year
Repayment rate: 6% of income above threshold

Postgraduate Funding Comparison

Nation	Maximum Funding	Threshold
Wales	£19,255	£21,000
England	£12,167	£21,000
Scotland	£13,900	£32,745

Wales offers £7,088 more than England and £5,355 more than Scotland, making it the most generous postgraduate funding system in the UK.

Calculate Your Welsh Student Loan Repayments

Factor in grants and the £1,500 cancellation with our Wales-specific calculators

Plan 2 Calculator Regional Comparison

👩‍🎓

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.