More than 150,000 UK graduates are carrying student loan debts of over £100,000, with one individual owing nearly £300,000, according to data.
Figures obtained by Royal London from the government-owned Student Loans Company (SLC) show that as of June, 150,450 borrowers had balances above £100,000, up from 113,029 in January, a rise of one-third in just six months.
In total, more than 2.6 million people owe £50,000 or more. The average debt for those who completed courses in England last year stands at £53,000.
Royal London described these debts as debt sentences that hinder graduates from saving, buying homes, or achieving financial security.
The increase has been linked to rising tuition fees, higher living costs, and longer repayment periods under newer loan plans.
Student finance typically includes a tuition fee loan, paid directly to universities, and a maintenance loan for living expenses, both repayable under different government-set plans.
For example, students in England who started after August 2023 are on Plan 5 loans, which accrue interest at 3.2% and are written off after 40 years – 10 years longer than Plan 2 loans.
The Royal London’s consumer finance expert, Sarah Pennells had warned “Six-figure student loan balances aren’t just numbers on a screen, they are delaying dreams, derailing savings plans and making it harder for young people to feel financially secure.”
The SLC said unusually high balances often reflect government policies, including exemptions for certain courses and additional funding for students with special circumstances.
The Department for Education stressed that such large debts are not typical and insisted the system must remain sustainable for both students and taxpayers.
