More than four in five student loans have grown since entering repayment

More than four in five (82.6%) student loan balances have grown since borrowers became eligible to start repaying them, according to new Freedom of Information data obtained by Compare the Market from the Student Loans Company (SLC). The latest figures suggest that student debt is continuing to grow for many borrowers even after they become liable to make repayments.

A total of 7,147,969 balances had increased as of May 2026, while 1,507,511 had decreased. Overall, 82.6% of balances included in the latest analysis had increased since entering repayment, compared with 76.0% in Compare the Market’s previous research, conducted in February this year. Conversely, just 17.4% have decreased, compared with 24.0% previously.

The figures also highlight the scale of borrowing under Plan 2, which was introduced in England in 2012, and impacts the majority of recent graduates. Almost five million Plan 2 accounts still have an outstanding balance, more than any other repayment plan.   Plan 2 also accounted for the largest share of balances that had grown over time, with 4,426,339 increasing after borrowers became eligible to repay, compared with 304,815 that had fallen.

The findings build on Compare the Market’s previous student debt research, which found that more than 2.8 million graduates owed at least £50,000 in student debt, while the largest student loan on record exceeded £314,000.

As Plan 2 covers the majority of recent graduates, these figures suggest that rising student loan balances are affecting a significant proportion of younger workers at the start of their careers. In addition, for many borrowers, making repayments does not necessarily reduce their debt balance, highlighting the long-term financial impact of the current student loan system.

Sajni Shah, Money Expert at Compare the Market, said “Many people assume that once they start repaying their student loan, the amount they owe will gradually start to come down. These figures suggest that isn’t always the case.

“For some graduates, it can be frustrating to see their balance continue to rise despite making repayments. That’s because student loans work differently from most other forms of borrowing, with interest continuing to build over time.

“While repayments are linked to earnings, meaning borrowers only repay when they earn above a certain threshold, it’s still important to understand how your loan works and how it could affect your finances in the years ahead.

“For many people, student debt can remain part of their finances for years after graduating, which is why it’s important to understand how repayments work and how balances can change over time.

“With many graduates already dealing with high housing costs, rising bills and other financial pressures, taking steps to manage everyday spending can make a real difference. Reviewing subscriptions, comparing insurance policies and shopping around before renewing contracts are all simple ways to keep costs under control.”

Laura Pomfret, Personal Finance Expert at Compare the Market, said “When you’re carrying a large student loan balance, it’s easy to feel as though your finances are standing still. Building financial confidence is especially important at a time when many are balancing student debt alongside rising living costs and other financial goals.

“While student loans can provide valuable access to higher education, there is an ongoing debate about whether the current system is working for graduates, or whether it was ever made clear that balances could continue to climb at such a rate. There is a strong case for reform to ensure the system is fit for purpose and more transparent for borrowers.

“In the meantime, even if it can feel like you’re on a money treadmill, not making any progress, try concentrating on the financial goals you can actively work towards, whether that’s building up a sinking fund, comparing prices on household items and bills, or paying off more expensive forms of debt first. Small steps can help build both financial resilience and confidence over time.”

Student loan balance increases and decreases by plan type