‘Really jaw-dropping’: UK’s highest student debt revealed

A graduate in the UK is saddled with £231,000 of student debt, new figures show.

Campaigners called the figure “eye-popping” and claimed it proved tuition fees were in desperate need of reform.

The student loan company that releases the data said the balance belongs to Plan 2 borrowers, meaning it can only be withdrawn after 2012.

In another case, a single loan attracted more than £54,000 in interest.

A spokesman for the SLC said that in England, graduates leave university with an average debt of £44,940, with higher balances often resulting from students taking multiple courses or studying for a longer degree.

Tom Allingham, a spokesman for Save The Student, called the figures “really dizzying” – a recent poll by the financial website showed 67 per cent of graduates were worried about repaying their loans and 64 per cent were worried about repaying their loans. Graduates think they will never be able to clear their balances. full.

He told Sky News the balance of £231,000 was “something I’ve never come across before”, adding: “It’s shocking that so much debt has been accumulated in such a short period of time, but it’s worth noting that this example was Very much an outlier.”

Mr. Allingham said most Plan 2 borrowers have eliminated any remaining debt 30 years after graduation.

“No matter the size of the loan, graduates will only pay back 9% of their income over the repayment threshold. What’s more, student loans don’t work like traditional debt – and best of all, they won’t impact your credit Score,” he explained.

Chloe Field, vice-president of higher education at the National Union of Students, told Sky News: “These figures are an indictment of our education system.

“The UK cannot pretend that everyone has access to university when they are at risk of being saddled with debt worth more than £200,000.”

Ms Field warned that student debt was preventing people from working-class backgrounds from gaining degrees.

She added: “People only qualify for student loans once. This means that if someone wants to retrain later in life, they will have to pay off their student debt in full.

“The only viable solution is to create a higher education system that is fully funded and free at the point of use.”

Read more from Sky News:
IT employee jailed for fentanyl murder
Illegal e-cigarettes found in WWII bunker
Home sec spends £165,000 on private flights

A Department for Education spokesman said: “It is vital that we have a sustainable student finance system that is fair to students and taxpayers. We have frozen tuition fees for the 2023-24 and 2024-25 academic years to provide better value for students.

“New borrowers will also not have to repay more than the original amount borrowed, adjusted for inflation, and graduates earning below the repayment threshold will not have to repay anything. Any outstanding debt will be charged at the end of the loan term. Log out.”