A degree from UK is likely to leave you in debt, shows survey

Students in England are finishing university with an average student loan debt of £53,000, according to new data from the Student Loans Company (SLC). The figure marks a 10% increase from last year’s average of £48,270, reflecting higher borrowing as students struggle to meet the rising cost of living.

The SLC data for 2024–25 also highlights a sharp contrast with the rest of the UK. Average student loan debt stands at £17,000 in Scotland, where tuition is free for local students, £28,000 in Northern Ireland, and £39,470 in Wales.

With the cost of living rising, many students are also working alongside their studies. A survey by the Higher Education Policy Institute (HEPI) found that 68% of full-time students are now employed during term time, working an average of 13 hours a week—the highest level in ten years.

Meanwhile, nearly 3 million graduates in the UK are repaying their student loans. The SLC says that 40% of those required to repay are making payments averaging £1,100 in 2024–25.

England’s overall student loan book has now reached £266 billion, up significantly from £64 billion a decade ago following the increase in tuition fees. This figure is expected to grow further as the government raises domestic tuition fees from £9,250 to £9,535 from September 2025.

Despite this, the financial outlook for universities remains uncertain. The National Centre for Entrepreneurship in Education found that a quarter of university leaders believe their institutions need major restructuring to survive. Over half said financial stability is now their top priority, while 28% cited international student recruitment as critical.

A report by the Tony Blair Institute warns that many UK universities rely heavily on international student fees to offset falling domestic tuition revenue, which has dropped by nearly a third in real terms since 2012 due to inflation.

The report adds that possible government changes to student visa rules—including a 6% levy on fees, stricter compliance, and reduced post-study work rights—could hurt universities most dependent on overseas enrolments, particularly post-1992 institutions.

Alexander Iosad from the institute said: “Universities with lower international rankings and former polytechnics had weaker finances and were most reliant on international students.”