Students owe nearly £500m of ‘hidden debts’ to UK universities, figures reveal

Students have accrued nearly £500m in “hidden debts” to their universities, including library fines, unpaid accommodation and support loans, according to figures that highlight the cost of living crisis on UK campuses. The figures from freedom of information requests sent to 148 UK universities showed that 180,000 students and graduates owe private debts totalling £486m to universities, averaging about £2,650 each. It means many students are building up thousands in private debt on top of tuition fees and maintenance loans, putting them in further financial difficulty before embarking on their careers. Of the 77 universities that responded with detailed figures, universities in Scotland were among the worst-affected. Students at the University of the West of Scotland owed a combined £29m in private debts, while those at the University of Strathclyde owed their university nearly £23m. Strathclyde and parts of the University of the West of Scotland are based in Glasgow and Paisley, where students have faced steep rent increases in recent years. In England, students at the University of Sunderland owed more than £24m, students and graduates owed Canterbury Christ Church University a combined £22m, and those studying at Queen Mary University of London owed nearly £20m. The University of Kent had more than 11,000 students and graduates in its debt, for a total of £21m. Southampton Solent and the University of Wolverhampton also had more than 11,000 students or graduates with unpaid bills. The figures come from freedom of information requests submitted by Vanquis, a specialist bank based in Bradford. Tim Schwarz, a spokesperson for Vanquis, said living costs and expenses “are clearly putting a strain” on students’ finances, leading them to seek extra support from their universities. Schwarz added: “This data highlights a hidden and growing layer of debt beyond standard tuition and maintenance loans, which already average over £53,000. “These additional debts don’t disappear when students graduate – they follow young adults as they enter full-time work and can even affect credit scores if left unpaid. “Unlike government-backed loans, private debt owed directly to universities can be less flexible, have much shorter repayment deadlines and no minimum income threshold.” A spokesperson for Universities UK, the body that represents university vice-chancellors, said: “Universities offer scholarships, bursaries and hardship support for students who are struggling financially, but maintenance loans have not kept pace with students’ rising costs. “We hope the government will commit to maintenance loans which better track the cost of living in a way that works for students and universities in the long term.” The cost of living is often cited as a leading cause of students dropping out or disrupting their education. A survey of students earlier this year by the Higher Education Policy Institute found that 68% undertook paid work during term time, a rise of 12 percentage points since 2024. A spokesperson for the Office for Students, which regulates universities in England, said: “Universities are autonomous organisations and will have their own processes in place for recovering outstanding debts. Unpaid student debts do not, taken in isolation, cause concerns about the financial sustainability of universities but clearly all institutions will want to recover debt in a prompt and efficient way. “Universities seeking to recover debt from students and graduates should always do so in a sensitive and proportionate manner.” • This article was amended on 19 October 2025. Students at the University of the West of Scotland’s Paisley campus have also faced steep rent increases as well as in Glasgow.