Want a UK degree? You could graduate with over Rs 62 lakh in debt

Students in England now graduate with an average debt of ₹62.43 lakh, as rising rents and living costs force many to borrow more and work longer hours

Students in England are now leaving university with average debts of £53,000 (nearly ₹62.43 lakh) according to new data from the Student Loans Company (SLC). The figure marks a 10% rise from last year’s average of £48,270 and reflects a growing dependence on loans to meet rising living expenses.

 

The SLC’s latest release for the 2024–25 academic year reveals a stark gap in borrowing across the UK. In Scotland, where local students do not pay tuition, average debt is £17,000. In Northern Ireland it stands at £28,000, while students in Wales owe around £39,470 on average.

 

More students working part-time

 

As prices climb, many students are taking on paid work during term time to manage their finances. A survey by the Higher Education Policy Institute found that 68% of full-time students in the UK are now working, up from 56% a decade ago. The average working week is now 13 hours—more than at any time in the last ten years.

 

Meanwhile, nearly 3 million graduates are repaying student loans. According to the SLC, 40% of those required to pay are making monthly repayments averaging £1,100 in 2024–25.

 

The size of the student loan book in England has soared to £266 billion—up from £64 billion just ten years ago. It is expected to grow further, with the government planning to raise domestic tuition fees from £9,250 to £9,535 starting September 2025.

 

Universities under pressure

 

Despite the rise in fees and borrowing, universities are facing growing financial uncertainty. A recent report by the National Centre for Entrepreneurship in Education found that 25% of university leaders believe their institutions will need major restructuring to remain viable. Over half said financial stability was now their top concern, while 28% named international student enrolment as a priority.

 

A separate study by the Tony Blair Institute noted that real-terms income from domestic tuition has dropped by nearly a third since 2012 due to inflation. The report warned that possible changes to student visa rules—such as a 6% levy on international fees, tighter compliance measures and reduced post-study work options—could disproportionately affect post-1992 universities that rely more heavily on international enrolments.

 

“Universities with lower international rankings and former polytechnics had weaker finances and were most reliant on international students,” said Alexander Iosad from the institute.

 

61% of students borrow to pay rent

 

Rising rent costs are placing further strain on students, particularly international ones. According to Graddinghomes.com, a global student accommodation platform, rent now consumes a larger share of student budgets than ever before.

 

“Spending on student housing in the UK has jumped 15 per cent, driven by rising rents, an influx of international students and a growing preference for higher-end purpose-built student accommodation (PBSA),” Mamta Shekhawat, founder of Graddinghomes.com told Business Standard.

 

“The 15 per cent increase in the proportion of student budgets dedicated to accommodation is a clear indicator of a worsening affordability crisis,” she added. “Without immediate and effective interventions, the rising cost of accommodation will continue to risk student wellbeing, academic success, and the fundamental principle of equitable access to higher education in the UK.”

 

Of all students approaching Graddinghomes.com for UK housing, 52% were Indian.

 

PBSA prices rising faster than maintenance loans

 

The average cost of PBSA now stands at £13,595 per year for 2024–25, up from £11,500 in 2022–23—an 18% increase in just two years. In London, average monthly rent is £1,211, far above Northern Ireland’s £904.

 

Nationally, rent rose 8% in early 2025. In cities like London, Manchester and Edinburgh, annual increases have ranged from 8% to 12%.

 

Though PBSA comes with amenities like en-suite bathrooms and common spaces, its cost often outpaces available loans. In London, the maximum maintenance loan is £13,348, falling short of average rent for PBSA.

 

To bridge the gap:

 

61% of students have borrowed money

 

36% from family or friends

25% via loans, credit cards or overdrafts

Many have increased their work hours during term, which has raised concerns around academic performance and mental health

 

Graddinghomes.com said its services include verified listings, budgeting tools and tenant rights information to help students navigate the UK housing market.

 

International student numbers rising despite cost pressure

 

In the 2023–24 academic year, more than 600,000 international students were enrolled in UK universities. That number is expected to rise, putting further pressure on housing. But supply has not kept up. The UK has around 678,000 PBSA beds, while demand is estimated at 1.4 million. A fall in landlord participation due to mortgage costs has also reduced the number of shared rental houses.

 

Why Indian students still choose the UK

 

Despite rising costs, Indian students continue to choose the UK for its prestigious institutions. Imperial College London ranks 2nd in the QS World University Rankings 2025, followed by the University of Oxford at 3rd and the University of Cambridge at 5th. University College London comes in at 9th.

 

According to the Higher Education Statistics Agency, Indian student enrolment rose by 39% in 2022–23 to reach 173,190—surpassing Chinese student numbers for the first time since 2018.

 

Between April and June 2023, more than 16,185 student visas were issued to Indian nationals. The UK is targeting 600,000 international students by 2030, according to ICEF Monitor.

 

Inflation and interest rates still high

 

The Office for National Statistics reported that inflation in the UK was 3.5% in the 12 months to April, driven by rising household energy and water bills. The Bank of England expects inflation to tick up again later this year. Interest rates have been cut four times since August 2024, now standing at 4.25%.