United Kingdom Education/Student Loans Market Size and Share
| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2020 - 2023 |
| CAGR | 7.00% |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Education/Student Loans Market Analysis by Mordor Intelligence
The United Kingdom Education/Student Loans Market is expected to register a CAGR of 7% during the forecast period.
- Student loans are the main method of direct government support for higher education students. Money is loaned to students at a subsidized rate to help with their maintenance costs and to cover the cost of tuition fees. In the year 2021-22, there were 2.86 million students at the United Kingdom's higher education institutions. Over the past decade, the number of entrants to 'other undergraduate' courses has fallen by almost two-thirds. The large majority of these courses are for part-time United Kingdom students.
- There were 7,67,000 applications for full-time undergraduate places through the Universities and Colleges Admissions Service (UCAS) in 2022, out of which around 5,60,000 of these applicants were accepted. Currently, GBP 20 billion (USD 27.40 billion) a year is loaned to around 1.5 million students in England each year. The value of outstanding loans at the end of March 2023 reached GBP 206 billion (USD 282.22 billion). The ten most affordable United Kingdom cities for students across 21 popular university cities are Cardiff, Cambridge, Southampton, Sheffield, Coventry, York, Durham, Oxford, Bristol, and Birmingham. These cities are known to offer the best value for money when it comes to the cost of living about monthly income.
United Kingdom Education/Student Loans Market Trends and Insights
High Tuition Fees is Driving the Market
- The United Kingdom is the ultimate study destination for many international students because of the academic excellence and student life it offers. Studying in the United Kingdom can be an expensive affair, which is why it regularly features in the list of the top 5 most expensive study abroad destinations. However, if you look at the brighter side, the duration of the majority of courses in the United Kingdom is very short, which reduces the overall cost.
- The approximate cost of studying at the United Kingdom private and public universities varies between GBP 4,180 to GBP 29,259 (USD 5705 to USD 40045) annually. Besides, as an international student, one has to incur several fees while studying in the country. Therefore, it becomes crucial to smartly plan expenditures. The cost of studying in the United Kingdom is divided into three parts, i.e., the cost of education, living expenses, and other essential expenses.
- The international students in the United Kingdom for medical degrees and MBAs are higher compared to tuition fees for humanities and social science degrees. Living expenses are another important part of the total cost of studying in the United Kingdom from India or other international cities. They include paying for accommodation, food, transportation, household bills, shopping, other leisure activities, etc. The average monthly cost of living in the United Kingdom is around GBP 1100-1300 (USD 1507-1781).
England has the Highest Number of Student Loans Debts
- Loans to students in England are far higher than those in other countries in the United Kingdom. Students in Scotland, where tuition is free for residents, have GBP 15,400 (USD 21098) in outstanding loans on average. In contrast, students from Wales owe GBP 35,500 (USD 48395), and those from Northern Ireland owe GBP 24,500 (USD 33545) after graduation. The outstanding student loans in England have surpassed GBP 200 billion (USD 274 billion) for the first time in 20 years, earlier than previous government forecasts, as the number of students at universities continues to outstrip expectations.
- The Student Loans Company (SLC) revealed that the average amount owed by graduating students had risen again and now sits at just under GBP 45,000. England's undergraduate population has swelled more rapidly than expected, while postgraduate students have also been able to take out loans. Currently, GBP 20 billion (USD 27.40 billion) a year is loaned to around 1.5 million students in England each year. The value of outstanding loans at the end of March 2023 reached GBP 206 billion (USD 282 billion). The Government forecasts the value of outstanding loans to be around GBP 460 billion (USD 629 billion) (202122 prices) by the mid-2040s.
Competitive Landscape
The United Kingdom Education/Student Loans Market is relatively fragmented. There are various providers, including government-backed loans, private banks, and alternative lenders, offering different types of loans for education. Some of the major players in the market are Lendwise, Prodigy Finance Student Loan, HSBC Student Loan, CUJ Loans, and The Global Student Loan.
United Kingdom Education/Student Loans Industry Leaders
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Lendwise
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Prodigy Finance Student Loan
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HSBC Student Loan
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CUJ Loans
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The Global Student Loan
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2023: Prodigy Finance, a socially responsible FinTech leader in international student loan lending, announced a groundbreaking USD 350 million facility in partnership with Citi, Schroders Capital, and SCIO Capital. This marks the inaugural transaction under Prodigy's innovative multi-issuance special-purpose vehicle structure. The collaborative effort between Prodigy Finance and its funding partners reflects a substantial commitment to providing accessible financial support to ambitious master's students worldwide. To date, Prodigy has disbursed over USD 1.8 billion in postgraduate education loans, supporting more than 35,000 high-potential students from across 100 different countries.
- March 2023: Following extensive overnight negotiations, HSBC came to the rescue of Silicon Valley Bank's United Kingdom branch. HSBC United Kingdom has acquired SVB United Kingdom for a nominal sum of GBP 1 (USD 1.21) in a transaction that excludes the assets and liabilities of SVB United Kingdom's parent company.
United Kingdom Education/Student Loans Market Report Scope
A student loan is a specific type of loan made for students to assist them in covering the costs of their post-secondary education and any related expenses, including tuition, books, supplies, and living costs. Government agencies, private financial institutions, or educational institutions themselves typically provide these. These loans are designed to assist students who may not have the immediate financial means to cover the full cost of their education.
The United Kingdom education/student loans market is segmented by type (federal/government loan, private loan), by repayment plan (standard repayment plan, graduated repayment plan, revised pay as you earn (REPAYE), income-based, and other repayment plans), by age group (24 or younger, 25 to 34, and above 35), and by end-user (graduate students, high school student, and other end-users).
The report offers market size and forecasts in value (USD) for all the above segments.
| Federal/Government Loan |
| Private Loan |
| Standard Repayment Plan |
| Graduated Repayment Plan |
| Revised Pay As You Earn (REPAYE) |
| Income-based |
| Other Repayment Plans |
| 24 or Younger |
| 25 to 34 |
| Above 35 |
| Graduate Students |
| High School Student |
| Other End-Users |
| By Type | Federal/Government Loan |
| Private Loan | |
| By Repayment Plan | Standard Repayment Plan |
| Graduated Repayment Plan | |
| Revised Pay As You Earn (REPAYE) | |
| Income-based | |
| Other Repayment Plans | |
| By Age Group | 24 or Younger |
| 25 to 34 | |
| Above 35 | |
| By End-User | Graduate Students |
| High School Student | |
| Other End-Users |
Key Questions Answered in the Report
What is the current United Kingdom Education/Student Loans Market size?
The United Kingdom Education/Student Loans Market is projected to register a CAGR of 7% during the forecast period (2025-2030)
Who are the key players in United Kingdom Education/Student Loans Market?
Lendwise, Prodigy Finance Student Loan, HSBC Student Loan, CUJ Loans and The Global Student Loan are the major companies operating in the United Kingdom Education/Student Loans Market.
What years does this United Kingdom Education/Student Loans Market cover?
The report covers the United Kingdom Education/Student Loans Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United Kingdom Education/Student Loans Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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United Kingdom Education/Student Loans Market Report
Statistics for the 2025 United Kingdom Education/Student Loans market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom Education/Student Loans analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
