Graduates in England are now leaving university with average student debt of £53,000, according to new figures from the Student Loans Company (SLC).
This marks a 10% increase in just one year, highlighting the growing financial pressure on students amid rising living costs.
The average student loan balance in England has risen by £5,000 compared to 2023–24, when the typical debt stood at £48,270.
In stark contrast, students graduating in Scotland – where tuition is free for local students – carry an average debt of only £17,000. Students from Northern Ireland and Wales hold average debts of £28,000 and £39,470 respectively.
The rising cost of living has also led to more students taking on part-time employment. Data from the Higher Education Policy Institute reveals that 68% of full-time students now work during term time, averaging 13 hours per week – the highest rate recorded in the survey’s ten-year history.
Meanwhile, the SLC reports that 62% of former students liable for repayments are active in the UK tax system, with around 3 million individuals making average repayments of £1,100 in 2024–25.
The total value of England’s student loan book has surged to £266 billion, up from £64 billion a decade ago. This increase follows the introduction of £9,000 annual tuition fees and associated borrowing. The figure is set to rise further as the government increases domestic tuition fees from £9,250 to £9,535 starting in September.
Despite this rise in fee income, many institutions remain financially vulnerable. A report from the National Centre for Entrepreneurship in Education warns that a quarter of university leaders believe their institution will require a complete structural overhaul to navigate ongoing financial challenges.
Over half of university leaders now cite financial stability as their top priority. Additionally, 28% of respondents identify international student recruitment as their most critical focus, reflecting increasing reliance on overseas tuition fees.
A separate study from the Tony Blair Institute highlights how domestic tuition fees, frozen since 2017 and eroded by inflation, have declined by nearly a third in real terms since 2012. As a result, many universities are using international student fees to subsidise teaching for home students.
The report also cautions that proposed reforms in the government’s immigration white paper could threaten this funding model. Measures under consideration include a 6% levy on international tuition fees, tighter compliance rules, and reduced post-study work opportunities for overseas graduates.
Universities with lower international rankings and those that were formerly polytechnics are considered most at risk, as they tend to rely heavily on income from international students to maintain financial viability.
The report concludes that any changes to the student visa system must be carefully aligned with a broader reform of higher education funding. Without a sustainable financial framework, many universities across the UK could face significant long-term instability.
