The debt consists of library fines, unpaid accommodation, support loans, and course and facility fees. The £486million universities have a right to collect from students means that the average debt owed is £2,650. Keep in mind this is on top of the standard tuition and maintenance loans which already leaves students with an average debt of £53,000.
"The £486million universities have a right to collect from students means that the average debt owed is £2,650."
University tuition fees also rose last year for the first time in over a decade to £9,535 – an increase of 3.1% from the previous year. This saddles the ‘class of 2028’ with a debt of £28,605 in tuition fees alone.
Unlike standard tuition loans, private debt has a shorter repayment schedule and no minimum income threshold requirement for institutions to start collecting. This is due to the fact the debt is owed directly to the universities rather than to the government, as is the case with student loans .
Out of the 77 universities who cooperated with the FOI request, the University of the West of Scotland stands to collect the most, with students collectively owing nearly £30 million. Even closer to home, the University of Sunderland was ranked 2nd in unpaid fees with an outstanding bill of £24.5 million.
Interestingly, universities specialising in specific subjects such as music or art have fewer students indebted to them. The London Business School only has four students in debt and the Leeds Art University has zero. These lower debt numbers are likely because these institutions accept fewer students.
"The main reason suggested by Vanquis for all this private debt is the increasing cost of living."
The main reason suggested by Vanquis (the submitter of the FOI requests) for all this private debt is the increasing cost of living. 31% of students have said they’ve considered dropping out due to financial problems and a recent study reveals that more than two thirds of students now have a part time job during term time – a 12% increase from 2024.
With Labour’s recent announcement that university tuition fees will continue to rise every year in line with inflation, it’s likely this private student debt will only increase.
Sources:
Student Loans in England: Financial Year 2024-25 - GOV.UK
University tuition fees rising to £9,535 in England - BBC News
The Hidden Cost of University | Vanquis
National Student Money Survey 2025 – Results - Save the Student
University tuition fees in England to rise with inflation every year from 2026 - BBC News