More than 2.6m people now hold at least £50,000 of outstanding UK student debt, according to data obtained by Compare the Market.
The largest student loan on record in the UK as of August 10, 2025, was £299,645, figures from a Freedom of Information (FOI) request to the Student Loans Company (SLC) show.
The average loan balance on entry into repayment for English borrowers is now sitting at £53,010.
The SLC student loans are by far the most popular way for students to fund their university costs. According to government figures, almost £21 billion per year is now loaned to around 1.5 million higher education students in England.
As of the August 10, 2025, 2,478,047 student loan customers had paid off their student loans in full. Meanwhile, 8,607,271 student loan customers had an outstanding student loan balance.
In the lead up to another academic year, Compare the Market has put together a helpful guide for students on how to navigate their student loans. For graduates just starting out in the world of work, this might help you to better understand your loan type and when you might need to start repaying it.
Types of student loans
There are two main types of student loan available to those attending a university in the UK. A tuition fees loan covers the cost of tuition fees and is paid directly to a student’s university or college. A maintenance loan, on the other hand, will cover accommodation and living costs, and is paid directly into a student’s bank account at the start of each term.
What students in the UK can currently borrow
Loans for tuition fees are currently capped at £9,535 per year. Those studying an accelerated degree can get up to £11,440 each year.
The maximum amount students in the UK can borrow for a maintenance loan depends on where they live. For the academic year 2025 to 2026, those living away from home in London can borrow the most – at £13,762 per year. Those living away from parents outside of London can borrow up to £10,544 per year. If you’re living with your parents, you can get up to £8,877 on an annual basis.
If your course starts between 1 August and 31 December, you have until the 31st May after your course started to apply for tuition or maintenance loans.
How student loan repayments work
There are five different student loan repayment plans for UK borrowers – Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate Loan. Which one a student is on will depend on when they started their course, and where. It’s important for students and graduates to know which plan they are on, as each one has a different yearly earnings threshold before the loan must start being paid back.
Once a graduate’s earnings reach the threshold for their plan, if you are on plan 1, 2, 4 or 5, you will need to repay 9% of everything you earn above that each year. For those on plan 3, it’s 6% of earnings over the threshold.
So, the more you earn, the higher your repayments will be.
For example, if you’re on Plan 2 and your annual salary is £30,000:
£30,000 is £1,530 above the £28,470 Plan 2 threshold
You’ll need to pay 9% of £1,530
Your repayment for that year will be £137.70.
But don’t forget, you will need to pay interest rates, which roll up into the total balance you need to repay. Interest rates are generally updated on 1 September each year, they vary from plan to plan, and they could change throughout the year for certain plans.
Once graduates are eligible for repayments, they will automatically be taken from their salary. If a graduate is self-employed, then they will need to include their student loan when filling out their self-assessment tax return each year.
You can use your Student Loans Company (SLC) online account to keep track of what you’ve paid and your interest. If you choose to pay off your student loan early, you won’t be charged an early payment penalty. You can also make additional voluntary repayments at any time. But only pay more if you’re on track to clear the full balance before the loan is written off. Check the Gov.UK website to find out more about the timescales as to when your loan will be written off.
