Recent data indicates that over 150,000 individuals in the UK are now facing student loan debts exceeding £100,000, with one borrower reported to owe £298,000. This information arose from a freedom of information request made by Royal London to the Student Loans Company (SLC). The findings revealed that at the end of June, 150,450 borrowers had balances in this six-figure range, a significant increase from January, when 113,029 individuals reported similar debts.
Overall, more than 2.6 million people owe at least £50,000 in student debt, with the average amount for recent graduates in England being approximately £53,000. The rise in high-er balance debt is attributed to factors such as increasing tuition fees, the cost of living, and longer repayment terms associated with newer student loan plans.
Student loans consist of tuition fee loans, which are paid directly to universities, and maintenance loans intended to cover living expenses. Repayment conditions depend on the borrower’s repayment plan, which varies according to geographic location, start date of their course, and field of study. For instance, students from England who began their degree after August 1, 2023, will fall under Plan 5, while those who started in the previous academic year are on Plan 2.
Currently, Plan 5 loans carry an interest rate of 3.2%, with a repayment period extending 40 years after the individual is expected to commence payments. In contrast, Plan 2 loans are forgiven 30 years post-repayment commencement.
While a spokesperson for the SLC noted that exceptional balances may arise from specific government policies, a representative from the Department for Education emphasized that these high balances are not representative of most graduates. They also highlighted the importance of ensuring that student loans are sustainable and provide value for those pursuing higher education.
Source: https://www.theguardian.com/money/2025/sep/27/uk-graduates-student-loan-debt-sentences