More than 150,000 people in the UK are burdened with student loan debts exceeding £100,000, according to new data. One borrower has amassed a staggering £298,000 balance, raising fresh concerns about the long-term impact of rising tuition fees, living costs, and extended repayment terms.
The figures, obtained by Royal London through a Freedom of Information (FoI) request to the Student Loans Company (SLC), reveal a sharp increase in high-balance student debt. In January 2024, 113,029 people owed over £100,000. By June, that number had surged by a third to 150,450.
Student Debt Reaches Record Levels
Across the UK, more than 2.6 million graduates now owe at least £50,000, while the average student debt for those who completed courses last year stands at £53,000.
Royal London said the rise in six-figure balances is driven by higher tuition fees, increasing living expenses, and changes in repayment structures under newer loan plans. Consumer finance expert Sarah Pennells described the mounting debt as “debt sentences” that are delaying young people’s ability to buy homes, save for the future, and achieve financial security.
How UK Student Loan Repayments Work
Student finance typically combines a tuition fee loan paid directly to universities and a maintenance loan for living costs such as rent and food. Both must be repaid under different plans, depending on when and where students began their degrees.
• Plan 5 loans apply to English students starting after August 2023, with a 3.2% interest rate and a 40-year repayment term.
• Plan 2 loans, for those who started earlier, are written off after 30 years.
Save the Student notes that longer repayment terms under Plan 5 mean more graduates are likely to pay off their loans in full compared to earlier schemes.
Government and SLC Response
The SLC explained that exceptional debt balances often result from government policy, which allows additional funding in cases such as extended courses or compelling personal reasons.
A Department for Education spokesperson stressed that “these balances are not typical of the vast majority of graduates” and highlighted reforms requiring repayments once graduates earn over £25,000, alongside the extended 40-year repayment period.
The government insists the system must balance student affordability with long-term sustainability for taxpayers, while ensuring universities deliver value for money.
