Number of borrowers with £100,000+ in student debt jumps by a third to 150,000

• Royal London has obtained Freedom of Information (FOI) data revealing the accelerating levels of student debt
• The number of borrowers owing six figure sums has spiked in the first half of 2025 with one borrower owing an eye-watering £300,000
• Royal London is warning that 'debt sentences' are damaging graduates' ability to save for the future and get on the property ladder 

The number of borrowers burdened with student loan debt in excess of £100,000 jumped by a third to more than 150,000 in the first six months of the year. 

A Freedom of Information (FOI) request submitted by Royal London to the Student Loans Company (SLC) revealed the huge spike.  

The FOI revealed that, at the end of June, 150,450 people had loans of £100,000 or more. That represented an increase of 37,421 (33%) on January’s figure of 113,029.* That is almost double the average amount borrowers owe when leaving university, according to the SLC. 

In total, more than 2.6 million borrowers owed £50,000+ in student debt with the highest balance almost reaching £300,000. 

The sharp rise in high-balance student debt is likely to be the result of a range of factors, including rising tuition fees, higher living costs, interest accrual and the impact of longer repayment periods under newer student loan plans. Graduates setting out on their careers may find that their student loan balance is rising faster than they are paying it off as a result of the interest rates they are being charged.  

Royal London’s consumer finance specialist Sarah Pennells commented:  

"These figures are a wake-up call. What was once considered a smart investment in your future is now turning into a financial trap for thousands of graduates.  

"These 'debt sentences' mean that student loans are hanging over people for years. Six-figure student loan balances aren’t just numbers on a screen – they’re delaying dreams, derailing savings plans, and making it harder for young people to feel financially secure."

A graduate starts paying back their student loan when their income is over the threshold amount for their repayment plan, which is between £25,000 and £28,470, depending on which student loan they took out. Payment plans are determined by whether borrowers lived in England, Northern Ireland or Wales (Scotland has its own structure) when they took out their loan, when they started their course and the type of course that they studied. However, many borrowers face harsh interest rates on their loans – of up to 6.2%** – which means that, despite making monthly repayments, the debt keeps on growing.  

Graduates on Plans 1, 2, 4 and 5*** will pay back 9% of their income over the threshold, while those on a postgraduate loan plan will repay 6%. It means that anyone with an undergraduate and postgraduate degree will pay back 16%.  

For example, those on Plan 1 (students who started university between 1998 and 2011, living in England, Wales or Northern Ireland) will repay 9% of their income above the monthly threshold, which is £2,172. So, for a graduate earning a typical salary of £33,000 a year, they would get paid £2,750 a month before tax. This means they would pay 9% on the amount of their salary above the threshold amount, which would be £578 a month, giving a monthly repayment of £52.02 (9% of £578). As their salary increases so would their monthly repayments.  

A graduate earning £50,000 a year, with a £100,000 student loan balance and on Plan 2, which has a monthly threshold of £2,372, (students from England or Wales who started university between 2012 and 2022) could now be repaying around £170 a month, a hefty hit to take-home pay amid rising living costs. Perhaps more alarming for those looking to pay off debts is that a £100,000 loan balance in Plan 2 will increase by £465 a month due to interest charged (currently at a rate of 6.2%). This means despite regular repayments, the total loan balance continues to grow, making it harder and in some cases impossible for borrowers to repay the full debt. 

Sarah added: "In today's economic climate, where every pound counts, adding a mountain of student debt to the mix is pushing financial resilience to breaking point. Graduates need to think about saving for a deposit, building an emergency fund, investing for the future, or even just feeling confident enough to start a family, but for graduates with six-figure loan balances hanging over them, those goals may be delayed or feel increasingly out of reach."

At the moment, student loans are wiped if they are not repaid after a set period of time. Students from England and Wales who started university between 2012 and 2022, will have their remaining student loan wiped out after 30 years, but this timeframe is now 40 years.  

Top tips for improving financial resilience: 

• Make sure you understand which plan you're on and how much you'll pay each month.
• As your salary grows, plan ahead and make use of the student loan repayment calculator to ensure you understand how much the repayments will increase by.
• Check if you qualify for a student loan refund.
• Pay yourself first – after each pay cheque, put money away into a savings account first so that you aren’t tempted to spend it.
• Start a budget that works for you, prioritising necessary spend while ensuring you put a certain amount aside for activities, socialising or other hobbies to enjoy the day to day.
• Focus on building an emergency fund so that you have a pot of money to fall back on should you absolutely need it, to avoid getting into unnecessary further debt.
• Invest early – even if it’s just a little, the wonder of compounding means starting little and early can be just as effective as investing larger sums later on.
• Talk to your friends – for some, being in debt, even if it’s student loans, can be stressful and speaking to a trusted person or those in a similar situation can really help.