This article sheds light on the staggering burden of student debt in the UK. The figures reveal a landscape of extreme cases, with the highest outstanding student loan exceeding a quarter-million pounds (£230,000). This staggering sum paints a concerning picture alongside other data points, prompting questions about the sustainability of the current university funding system and its accessibility for all.
The Student Loans Company (SLC), which released the information through a Freedom of Information (FOI) request, reports an average student debt of £44,940 for graduates in England. While this average provides a general perspective, the data also exposes outliers with significantly higher debt burdens. One individual has already repaid over £110,000 on their loan, while another has accrued nearly £55,000 solely in interest.
The FOI request delved beyond total debt, also seeking information on the highest accumulated interest, the largest amount of “non-compliance interest” (NCR), and the biggest full repayment. While details about individual borrowers remain confidential, the data reveals a student with the highest debt – exceeding £230,000 – who reportedly studied “multiple courses.”
Dr. Luke Amos, a junior doctor burdened with student debt, shared his perspective. He described his debt as “almost a joke” after witnessing his outstanding balance surpass the £100,000 mark. Dr. Amos, who began a three-year course in 2015 followed by a four-year medical degree, expressed his resignation about ever fully repaying the loan. With interest charges exceeding his actual loan repayments, making a significant dent in the principal balance seems nearly impossible.
The data also highlights the impact of the 2012 policy changes that introduced “Plan 2” loans. Under this plan, graduates contribute 9% of their income exceeding £27,295 towards repayments, leading some to view it more akin to a “graduate tax.” Dr. Amos serves as a case study. Despite graduating in 2022, he accrued nearly £6,000 in interest during the recent tax year while only managing to pay back a mere £1,000 of his over £100,000 balance.
While Dr. Amos’ debt is significant, it pales in comparison to the highest outstanding balance known to the SLC. Previous reports mention a debt exceeding £189,700 in 2021, and another suggesting over 8,000 individuals on Plan 2 loans owe more than £100,000 as of September 2023. The SLC itself acknowledges limitations in calculating theoretical maximum debt or repayment figures.
The exceptional cases raise concerns about the fairness and effectiveness of the current system. Nick Hillman, director of the Higher Education Policy Institute (HEPI), expressed astonishment at the £231,000 debt figure, stating he had “never seen figures like this before” in his 15 years working in higher education. Concerns also surround the high “penalty interest” (NCR) charges, with Mr. Hillman questioning their effectiveness as a deterrent.
Chloe Field, NUS vice president of higher education, emphasized the detrimental impact of such high debt burdens: “The UK cannot pretend that university is accessible to everyone when there is the possibility of students incurring over £200,000 worth of debt.”
The Department for Education acknowledges the need for a “sustainable student finance system” that balances the interests of students and taxpayers. They cite freezing tuition fees for the next two academic years as a step toward affordability. Reforms are also cited, stating that under the new repayment plan, graduates will not repay more than the original loan amount when adjusted for inflation, and those earning below the repayment threshold won’t be required to make any payments.
