Students across the UK are discovering that their university debt doesn’t end with their tuition fees or maintenance loan. New figures reveal that almost half a billion pounds is owed directly to universities in unpaid accommodation, library fines and other charges – debts that could follow students long after graduation.
Freedom of Information requests sent to 148 universities uncovered around 180,000 students and recent graduates who collectively owe close to £500 million. On average, each person owes about £2,650 to their institution. It’s a type of debt few people talk about – not the official government student loan, but private arrears owed straight to universities themselves.
These debts include unpaid rent in halls, library fines, emergency hardship loans and other costs that quietly build up during study. While universities insist they do their best to support struggling students, the numbers suggest that living costs and campus charges are pushing many into deeper financial difficulty. One university in Scotland reported almost £29 million outstanding from students, while several English institutions admitted to millions more sitting on their books.
What worries financial experts is how different these debts are from standard student loans. Government loans are written off after a set period and don’t affect credit ratings, but money owed directly to a university can damage a graduate’s credit score, block access to postgraduate study, or even stop a student from collecting their degree certificate until it’s cleared.
For many undergraduates, this is a new and stressful discovery. The cost-of-living crisis has already seen students working more hours than ever, often alongside full-time study, to keep up with rent and food. Surveys show that two-thirds of students now work during term time. Those with no financial safety net are more likely to fall behind on bills, creating a spiral of small debts that add up quickly.
Student unions say maintenance loans are simply too low to meet real living costs. The maximum available outside London barely covers average rent in many cities, leaving little left for food or travel. Universities often have hardship funds or payment plans, but these vary widely and aren’t always easy to access.
One student from Birmingham told Student Times she owed nearly £1,800 in unpaid accommodation fees after losing a part-time job. “I didn’t even know it would affect my credit rating,” she said. “It feels like you can’t win – you study full-time, work part-time, and still end up in debt to your own university.”
Campaigners are calling for clearer communication about how these debts work and for hardship support to be better publicised. They argue that universities should not withhold degree results or references over small arrears when students are already struggling.
Behind the statistics lies a larger story about how higher education funding has failed to keep pace with reality. Tuition fees remain frozen in England, leaving universities short of income, while students face rising prices for everything from energy to food. The result is a financial squeeze on both sides of the lecture hall.
Unless something changes, “hidden debt” could become the new normal for a generation of graduates who thought their only loan would be the official one. For now, students are being urged to check their online accounts, talk to finance teams early and not ignore warning letters. Small debts can grow quickly – and unlike tuition fees, there’s no long repayment holiday or automatic write-off waiting down the line.