That code doesn't increment anything: it sets a column value to a fixed string and an existing column value.
And there is a better way to do that anyway:
Specify Computed Columns in a Table - SQL Server | Microsoft Docs[
^] Use that, and the column data doesn't need to be stored or updated at all - saving space - and can be retrieved at any time using a normal SELECT.
But incrementing values via an UPDATE in a DB are a bad idea: they lead to intermittent an difficult to find problems in production because at some point two or more users will try to update to the same value for different rows - and your data will become compromised as a result. Instead of manually incrementing values, use an IDENTITY column, and let SQL sort it out for you - you don't need to know a student ID before the data is stored in the DB anyway - honest!
IDENTITY (Property) (Transact-SQL) - SQL Server | Microsoft Docs[
^]