By Christian Abbott

Copyright birminghammail

The number of students burdened with debt in excess of £100,000 has 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. READ MORE Pensioners urged not to withdraw money in ‘panic’ before November change Royal London’s consumer finance specialist Sarah Pennells commented: “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.” Sarah 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.” A SLC spokesperson says: “In many cases, exceptional balances are a function of government policy that in certain circumstances exempts specific courses from repeat study restrictions, permits funding for additional years of study and results in SLC awarding additional years of funding when an individual demonstrates compelling personal reasons.” A Department for Education spokesperson says these balances “are not typical of the vast majority of graduates”. They add: “It is vital that students can be confident the significant investment they make in higher education delivers real value for money, and that universities provide teaching and experience they deserve to help students pursue a rewarding career. “It’s also important we have a sustainable student finance system that works for both students and taxpayers. Since last academic year, new students have been issued loans which require them to start repaying when earning over £25,000 per year and have an extended repayment term of 40 years.”