A third of people believe a university degree is not worth the cost, according to new findings released as MPs begin a fresh inquiry into student debt and interest rates. The parliamentary investigation will hear from graduates about the size of their loans and the charges they face.
The revelation adds to growing unease over the value of higher education in England, where tuition fees rose to £9,250 a year and interest rates on student loans can reach RPI plus 3%. With total student debt in the UK exceeding £200bn, many graduates are questioning whether the financial burden is justified.
“A new parliamentary inquiry into student loans begins as one in three graduates say their degree was not worth the cost. MPs will hear evidence on debt levels and interest rates.”
The inquiry comes amid concerns that the current system leaves graduates repaying loans for decades, with some never clearing the debt. The government is considering reforms to the repayment system, including lowering the threshold at which repayments begin and extending the loan term.
In Scotland, tuition is free for Scottish students, but students from elsewhere in the UK pay up to £9,250. Welsh students benefit from reduced fees, while Northern Ireland caps fees at £4,630. Despite these differences, the issue of graduate debt is a UK-wide concern as many move across borders for study and work.
The survey, conducted by the Higher Education Policy Institute (HEPI), found that 33% of adults say a degree was not a good investment. Among graduates under 30, the figure rose to 38%. However, 58% of all graduates said their degree was worthwhile, with higher earnings and job satisfaction cited.
MPs on the Education Select Committee will take evidence from graduates, universities, and student finance experts. They will examine whether the current interest rate model is fair and whether the repayment system should be more generous. The committee is expected to report its findings later this year.
What This Means For You - Students and graduates: If you are currently repaying a student loan, the inquiry could lead to changes in interest rates or repayment thresholds. You may want to submit evidence or follow the hearings to see how your payments might be affected. - Parents and families: With a third of people questioning the value of a degree, you may need to consider alternative routes such as apprenticeships or technical qualifications for your children. The inquiry will examine whether the current system offers value for money. - Taxpayers: The student loan book is a significant public liability. Any changes to repayment terms or write-offs could affect public finances. You should be aware of the long-term costs. - Future students: If you are considering university, the inquiry's recommendations could reshape how degrees are funded. You may face lower fees or different repayment conditions, but also potentially less generous maintenance support.