Student debt has become a pressing issue worldwide, impacting millions of young individuals pursuing higher education. As tuition costs rise, inflation persists, and opportunities for well-paying jobs remain scarce, student debt continues to grow, creating a significant burden on young professionals. This rise in loan costs often contrasts harshly against the recent drop of global government expenditure towards education, which UTS Online has highlighted as a point of concern for many students and their families.

By exploring the state of student debt in various countries, we can shed light on the challenges faced by students across the world, as well as the potential consequences for the economy and society from this growing debt.

United States: The Epicentre of Student Debt

The United States holds the unfortunate distinction of having one of the highest student debt burdens in the world, second in the country in terms of consumer debts after mortgages. With outstanding student loans reaching trillions of dollars, the average debt per borrower is a staggering amount, reaching $37,717 as of early 2023. Skyrocketing tuition fees, combined with limited financial aid and a lack of affordable education options, have pushed many American students into heavy debt.

However, the debt accumulation rate has begun to slow down and most consumers are thought to manage their debt responsibly, giving hope that the United States will improve their accumulated debt in the future.

United Kingdom: Struggling with Tuition Fees

The United Kingdom has also witnessed a sharp rise in student debt over the past decade, having reached over 200 billion pounds for the first time ever. This statistic comes 20 years earlier than previous governments had forecasted, although this is thought to be a higher number of university applicants.

High tuition fees, coupled with living expenses, have forced many students to rely on loans to finance their education alongside everyday expenses such as housing, groceries, and utility bills. Although the government offers student loans, graduates often face significant financial stress upon entering the job market, making it challenging to repay their debts in a timely manner that will provide relief to their finances.

Australia: The HECS-HELP System

In Australia, the Higher Education Contribution Scheme-Help (HECS-HELP) has been in place since 1989, allowing eligible students to defer their tuition fees through income-contingent loans. While this system eases the immediate burden, many graduates find themselves burdened by loan repayments once they start earning above a certain income threshold; a threshold that often comes earlier than expected.

Moreover, international students, who contribute significantly to Australia’s higher education sector, face higher tuition fees, adding to the complexities of student debt in the country. Without suitable intervention, such as a review of tuition fees and financial assistance programmes, it is likely that student debts will continue to plague many Australians in the decades following their tertiary education.

Canada: Balancing Access and Affordability

Canada has a mixed approach to student debt, with each province having its own set of rules and regulations regarding education financing. While the country offers a variety of grants and loans to students, the lack of uniformity can create disparities in access to higher education and financial support.

This lack of uniformity, however, is often offset by the fact that student loans do not accumulate interest while you are a student, regardless of your province. Furthermore, students are provided with a six-month interest- and payment-free period of grace following graduation. This allowance allows breathing room for many students as they seek a professional job that can begin to cover their debt repayments. While planning out your repayment plan is beneficial for managing your overall finances, lacking sufficient funds to make these repayments can make financial stability difficult to obtain.

Germany: A Beacon of Free Education

Germany stands out as a beacon of hope for students globally, offering free tuition at public universities for both domestic and international students. The most common of these education loans is known as Bafög, a state-funded programme that is needs-based, ensuring that each student receives the level of support their financial situation requires.

By eliminating tuition fees, Germany has significantly reduced the burden of student debt, enabling young graduates to start their careers without significant financial baggage. This includes international students, although qualifying for such loans without being a resident for a few years can be difficult to obtain without a strong prospect for staying in the country.

Sweden: Student Debt as a Social Issue

Sweden is renowned for its progressive approach to education and social welfare, which speaks to a national interest in maintaining a healthy and well-balanced workforce. While tuition fees for Swedish and EU/EEA students are generally low or non-existent, non-EU/EEA students face higher fees. This can lead to a disproportionate burden on international students, impacting their ability to thrive in a foreign country.

Despite college typically being free in Sweden, students still often graduate with debt due to the country’s self-reliant attitudes. Unlike many other countries, university students are expected to pay their own way through university, including housing, everyday expenses, groceries, travel, etc. This means that many students still have to make a repayment plan following their graduation if they did not have a sufficiently paying job during their studies.

Japan: Struggling Economy and Student Debt

In Japan, a combination of factors, including an ageing population, a stagnant economy, and limited job opportunities, has exacerbated the student debt crisis. With increasing tuition fees and a challenging job market, Japanese students often find it challenging to repay their loans, leading to long-term financial struggles.

There is some discussion amongst the long-governing Liberal Democratic Party to implement a proposal of student debt forgiveness for those who have a child. This proposal is likely to be linked to the country’s declining birthrate, which has left significant gaps in the massive economic industry and workforce. However, with many protesting this proposal for its discrimination against those unwilling, or unable to, have children, it is debatable as to whether this debt forgiveness will become a reality.


The state of student debt worldwide is a complex issue with unique challenges in each country. While some nations have implemented progressive policies to alleviate the burden on students, others continue to grapple with finding a balance between access to education and affordability. High student debt not only affects individuals’ financial well-being but also has wider implications for the economy and society as a whole.

Addressing the global student debt crisis requires a comprehensive approach that includes measures such as reducing tuition fees, increasing financial aid, promoting income-based repayment plans, and fostering job growth in key industries. By prioritising education as an investment in the future, governments can empower the next generation to pursue their dreams without the overwhelming weight of student debt. Only through collective efforts can we create a brighter future for students worldwide.