Average Student Debt UK

Are you worried about paying back your student loan in the UK? You’ve come to the right place. Every month, over 170,000 people visit our website for advice on problems just like this one.

In this article, we’ll go through:

•  The average student debt in the UK
•  Tips on what to do if you’re feeling worried
•  How long it usually takes to pay off student loans
•  Understanding how much debt is too much
•  Ways you might be able to write off some of your debt.

We know it’s hard dealing with student debt; some of our team have had to pay off their own loans. With our expertise, we’re here to help you learn how to manage your student debt.

UK Statistics

What is the UK average for student loan debt? The average amount of student debt on graduation is £45,000.

This includes any accrued interest and repayment costs but excludes other debts, such as overdrafts or credit card balances.

It also doesn’t include any savings you may have made during your course.

How is the figure made up?

In the UK, the average student loan debt is £45, 000 (2023 statistics). All students who intend to enrol in a university or college for a minimum of two years are included in this figure. 

It does not include graduates who have left university with a degree and are now paying off their student loans.

The total amount of money the government gives each year to help students pay their tuition fees is called “student support.” It is provided directly by the government through its Student Loans Company (SLC).

The SLC also provides grants to help low-income families afford higher education costs. However, this UK government support doesn’t cover all tuition fees, so students may still need loans if they cannot access other sources of financial assistance, such as bursaries or scholarships.

A third of students will leave university with debts exceeding £30k

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Graduate student loan statistics

According to the 2018 National Student Loan Data System (NSLDS), the average graduate student with a Stafford loan has £18,618 in debt. This is down from £21,099 in 2017 and £22,010 in 2016.

The NSLDS also reports that, on average, students have put down an interest rate of 3.7% on their loans and made payments of £312 per month through PAYE or direct debit plans (this includes both public and private institutions).

The average student loan debt after university is £19,000

Understand your debt options

MoneyNerd can introduce you to The Debt Advice Service for free debt advice. MoneyNerd does not provide debt advice or recommend debt solutions.

The Debt Advice Service can explain your options, including their benefits, costs and risks. Options available depend on your circumstances. There’s no obligation to take a debt solution.

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Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd is a commercial introducer and may receive a fee if you go ahead with a debt solution through The Debt Advice Service.

For free, impartial money guidance and help finding free debt advice, visit MoneyHelper.

By Age Group

Following is a breakdown of average student loan debt by age group.

• Under 25 years old £4,000
• 25-34 years old £25,000
• 35-44 years old £14,000

The average amount of student loans owed by those aged between 25 and 34 was the highest at around £25k compared to the other two age groups.

The average amount owed by those aged 35 to 44 was around £14k, significantly less than younger people who tend to borrow more money to pay off their student debts quicker.

Sources

Finder

Commons Library

Statista