Seeking comment: Russell Group graduates have highest student loan balances

For many graduates, the student loan feels less like a debt and more like a tax on ambition. As a financial coach, I’ve seen people question whether taking on extra responsibility, overtime or a promotion is worth it because they feel they are being penalised for earning more. That becomes particularly stark around £100,000, where the withdrawal of the personal allowance creates an effective 60% income tax rate before National Insurance. Add Plan 2 student loan repayments and the marginal deduction on part of someone’s earnings can rise to around 71%. At that point, keeping less than 30p of the next £1 earned can have a genuine behavioural impact. The frustrating part is that graduates can make repayments every month and still see their outstanding balance rise because of interest. For people unlikely to clear the loan in full, the headline balance can therefore feel almost meaningless. What matters far more is how much of their income will be taken over their working life.

I am not a student-finance expert, but the experience of my three sons shows why these averages need context.

Two attended Russell Group universities. One graduated last year and has been unable to find work connected to his degree, while another has a degree and master’s but currently works in a minimum-wage job. Neither earns enough to make Plan 2 repayments.

My middle son completed a five-year veterinary medicine degree at a non-Russell Group university this year. His debt will be considerably larger, but he moved directly into professional employment above the repayment threshold.

Their experiences suggest that course length and whether a degree provides a defined route into a profession may matter more than the university’s label. Outstanding balances alone cannot show whether higher education has produced a worthwhile employment outcome.