The number of borrowers with student loan debt in excess of £100,000 jumped by a third to more than 150,000 in the first six months of the year.
A Freedom of Information (FOI) request submitted by Royal London to the Student Loans Company (SLC) revealed the huge spike.
The FOI revealed that, at the end of June, 150,450 people had loans of £100,000 or more.
That represented an increase of 37,421 (33%) on January’s figure of 113,029.
That is roughly double the average amount borrowers owe when leaving university, according to the SLC.
In total, more than 2.6 million borrowers owed £50,000 in student debt with the highest balance almost reaching £300,000.
The sharp rise in high-balance student debt is likely to be the result of a range of factors, including rising tuition fees, higher living costs, interest accrual and the impact of longer repayment periods under newer student loan plans.
Graduates setting out on their careers may find that their student loan balance is rising faster than they are paying it off as a result of the interest rates they are being charged.
Sarah Pennells, Royal London’s consumer finance specialist, said: “These figures are a wake-up call. What was once considered a smart investment in your future is now turning into a financial trap for thousands of graduates.
“These ‘debt sentences’ mean that student loans are hanging over people for years. Six-figure student loan balances aren’t just numbers on a screen – they’re delaying dreams, derailing savings plans, and making it harder for young people to feel financially secure.”
She added: “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.
“Graduates need to think about saving for a deposit, building an emergency fund, investing for the future, or even just feeling confident enough to start a family, but for graduates with six-figure loan balances hanging over them, those goals may be delayed or feel increasingly out of reach.”
