Sharp rise in number of graduates with six-figure student loan debts

The number of UK graduates with student loan debts of £100,000 or more went up by a third in the first six months of the year.

According to figures obtained by Royal London, 150,450 people had loans of at least £100,000 at the end of June 2025.

That’s up from 113,029 in January - an increase of 33%.

Figures also showed that in total, more than 2.6 million graduates owed £50,000 or more in student debt, with the highest balance reaching nearly £300,000.

Why are more students facing six-figure debts?

Royal London believes this growing level of debt is down to several factors, including:

• rising tuition fees
• higher living costs
• interest building up
• longer repayment periods under newer student loan plans

"These figures are a wake-up call,” said Royal London’s consumer finance specialist Sarah Pennells.

“What was once considered a smart investment in your future is now turning into a financial trap for thousands of graduates.”

Ms Pennells warned that six-figure student loan balances are making it harder for young people to feel “financially secure”, plan for the future and achieve their goals.

“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,” she added.

When do I have to start paying back my student loan?

You only start repaying your student loan once your income exceeds the repayment threshold, which can be anything from £25,000 to £28,470.

But payments will depend on what type of loan you took out, what type of course you took, when you started university and which part of the UK you lived in when you took out your loan.

Can student debt be written off?

Any unpaid balance is written off after a set period, though this varies by plan. 

For example, most students from England and Wales who started uni between 2012 and 2022 have their loans cleared after 30 years

But under newer rules, this period has now been extended to 40 years.

For more information, check out our guide: UK student loans: everything you need to know.