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UK Student Loan Market Size (2024 - 2029)

The UK education/student loans market is a significant sector, with student loans serving as the primary form of government support for higher education. This market is characterized by subsidized loans aimed at assisting students with maintenance and tuition costs. Despite a decline in entrants to certain undergraduate courses, the market continues to support a substantial number of students annually. The market's scope is further illustrated by the extensive loan amounts disbursed and the considerable value of outstanding loans. Additionally, the affordability of living in various UK cities plays a crucial role in the overall market dynamics, influencing student choices and financial planning.

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Market Size of UK Student Loan Industry

UK Student Loan Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.00 %
Market Concentration Low

Major Players

UK Student Loan Market Major Players

*Disclaimer: Major Players sorted in no particular order

UK Student Loan Market Analysis

The UK education/student loans market is valued at USD 21.10 billion and 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 UK 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 UK 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 UK 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.

UK Student Loan Industry Segmentation

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. These are typically provided by government agencies, private financial institutions, or educational institutions themselves. These loans are designed to assist students who may not have the immediate financial means to cover the full cost of their education.

The UK 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.

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
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UK Student Loan Market Size Summary

The UK education/student loans market serves as a crucial financial support system for higher education students, primarily through government-backed loans offered at subsidized rates. This financial assistance is essential for covering tuition fees and maintenance costs, making higher education accessible to a broad demographic. The market is characterized by a significant number of students, with millions applying for undergraduate places each year. Despite the high cost of studying in the UK, which is among the most expensive study abroad destinations, the short duration of courses helps mitigate overall expenses. The market is relatively fragmented, with various providers, including government entities, private banks, and alternative lenders, offering diverse loan products to meet the needs of both domestic and international students.

The landscape of student loans in the UK is marked by substantial financial commitments, with outstanding loans reaching significant levels. England, in particular, sees higher loan amounts compared to other regions like Scotland, Wales, and Northern Ireland, due to the absence of tuition fees for residents in Scotland. The increasing number of students, both undergraduate and postgraduate, has led to a rise in the average amount owed by graduates, surpassing previous government forecasts. Key players in the market, such as Prodigy Finance and HSBC, continue to innovate and expand their offerings, reflecting a commitment to providing accessible financial support. Recent developments, like Prodigy Finance's substantial funding facility, highlight the ongoing efforts to support ambitious students worldwide, further shaping the dynamics of the UK education/student loans market.

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UK Student Loan Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Demand for Higher Education is Driving the Market

      2. 1.2.2 Government Support is Driving the Market

    3. 1.3 Market Restraints

      1. 1.3.1 Economic Uncertainty is Restricting the Market

    4. 1.4 Market Opportunities

      1. 1.4.1 Leveraging Technology and Fintech

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Current Trends and Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Federal/Government Loan

      2. 2.1.2 Private Loan

    2. 2.2 By Repayment Plan

      1. 2.2.1 Standard Repayment Plan

      2. 2.2.2 Graduated Repayment Plan

      3. 2.2.3 Revised Pay As You Earn (REPAYE)

      4. 2.2.4 Income-based

      5. 2.2.5 Other Repayment Plans

    3. 2.3 By Age Group

      1. 2.3.1 24 or Younger

      2. 2.3.2 25 to 34

      3. 2.3.3 Above 35

    4. 2.4 By End-User

      1. 2.4.1 Graduate Students

      2. 2.4.2 High School Student

      3. 2.4.3 Other End-Users

UK Student Loan Market Size FAQs

The UK Student Loan Market is projected to register a CAGR of 7% during the forecast period (2024-2029)

Lendwise, Prodigy Finance Student Loan, HSBC Student Loan, CUJ Loans and The Global Student Loan are the major companies operating in the UK Student Loan Market.

UK Student Loan Market Report Snapshots

UK Education/Student Loans Market - Growth, Trends, COVID-19 Impact, and Forecasts (2024 - 2029)