Average student in England leaves university with £47,700 debt – is a degree worth it?
Is a University Degree Worth the Cost in England?
Average student in England leaves university - Recent data indicates that the average graduate in England exits university with over £47,500 in student debt. While the total owed has slightly decreased compared to the prior year, the long-term financial implications remain a key concern for many. This raises questions about whether the benefits of a degree outweigh the burden of repayment.
Tuition Fee Increases and Funding Challenges
Starting in 2025, the annual cost of an undergraduate degree in England rose to £9,535, with another increase planned for August 2026 to £9,790. Universities have cited funding pressures as a reason for these hikes, noting that tuition fees had remained unchanged at £9,250 since 2017. Rising inflation and a decline in international student numbers contributed to the financial strain, prompting the government to align fees with annual inflation rates from 2026.
Repayment Rules and Long-Term Debt
In England, repayment of student loans begins when income reaches a certain threshold. The rules were updated in 2023, extending the repayment period and increasing the total amount owed for current and future graduates. For example, students who began repaying in April 2026 had an average debt of £47,730, down from £53,000 the year prior. This shift is partly due to the introduction of Plan 5 loans, which accrue less interest than the previous Plan 2 scheme.
"The extended repayment period will increase 'costs by thousands' for lower and mid-earners," warned Martin Lewis, a money-saving expert.
Living Costs and Student Employment
Living expenses for students have surged, with average weekly costs for first-year students in 2023-24 reaching £260 without rent or £418 including rent. In London, average annual rent for purpose-built student housing hit £13,595 in 2024-25. The Higher Education Policy Institute (Hepi) estimates that students need £61,000 over three years to maintain a "minimum socially acceptable standard of living," excluding tuition fees. In London, this figure jumps to £77,000.
Meanwhile, the percentage of full-time undergraduates working during term time rose to 65% in 2026, according to Hepi. However, this is still lower than pre-pandemic levels, highlighting the ongoing challenge of balancing education costs with financial sustainability.
Regional Variations in Costs
Student fees vary across the UK. In Northern Ireland, the maximum annual cost for home students is £4,855, rising to £4,985 in 2026-27. For other UK students, the fee is £9,535, increasing to £9,790 by 2026-27. In Scotland, tuition is free for most Scottish students, though non-Scottish students pay £9,535 annually, set to rise to £9,790 in the same timeframe.
Maintenance loans, which depend on family income, also face inflation-linked adjustments. In England, the maximum amount for students living away from parents outside London will increase to £10,830 for 2026-27, up from £10,544 in 2025-26. Unlike tuition fees, these loans are means-tested and may not fully cover living costs.
Students in Wales and Northern Ireland can access maintenance grants, which do not require repayment. Welsh residents will see grants rise to £1,020 in 2026-27, offering a slight reprieve from the financial pressures faced in England and Scotland.