Third of people say uni degree not worth it, as student loan inquiry begins

A Third of People Question the Value of University Degrees Amid Student Loan Inquiry

Third of people say uni degree - The UK Parliament’s Treasury Select Committee has launched an inquiry into the student loan framework in England, kicking off on Tuesday with input from student representatives and financial analysts. This investigation comes as growing concerns over the long-term viability of higher education have sparked debates about whether university degrees are still a worthwhile investment. The National Union of Students (NUS) has urged the committee to scrutinize two key aspects: the repayment threshold for graduates and the interest rates applied to loans. These elements, the union argues, are shaping the financial burden on young professionals and influencing their life choices.

Public sentiment toward university education has shifted significantly over the past two decades, according to the latest findings from the British Social Attitudes survey. The study, which has been tracking societal views on major issues for years, revealed that 34% of respondents in 2025 believe a degree "just isn’t worth the amount of time and money" — a sharp increase from 14% in 2005. This marks the highest level of skepticism about higher education in 20 years, with fewer people feeling confident that university prepares them for a better future. The proportion of individuals who think graduates are "a lot better off" in the long run has also declined, from 50% in 2005 to 36% in 2025.

Student Debt and Living Costs

At the heart of the debate is the rising cost of student loans, which many graduates say is outpacing their earnings. For those who took out Plan 2 loans between 2012 and 2023, the financial strain has become particularly evident. Gemma, a 33-year-old working in the tech sector, shared her experience with the BBC through Your Voice, describing the persistent pressure of debt. "It feels like I’m constantly chasing a debt that gets bigger over time; it feels like climbing a mountain," she said. When she graduated in 2016, her initial loan balance was £34,105, but by 2025, it had grown to £41,908 due to interest rates surpassing repayment amounts.

Gemma’s story reflects a broader trend: many graduates are delaying major life milestones such as starting a family because of financial anxiety. Even though student loan repayments pause during maternity leave, the interest continues to accumulate, creating a cycle of debt that feels unmanageable. "I’ve put off having children with my partner because of the loans," she explained. This sentiment underscores the emotional and financial toll of the current system, particularly for those in lower-income brackets.

Policy Challenges and Calls for Reform

The inquiry aims to address these concerns by examining how the repayment threshold and interest rates affect graduates. Currently, repayment begins once earnings exceed £29,385, a figure set to remain frozen until 2030. The NUS argues that this decision contradicts the original terms of the loans, which were designed to make higher education accessible while ensuring manageable repayment schedules. Alex Stanley, a spokesperson for the union, emphasized the need for a "course correction" to prevent future generations from facing insurmountable debt.

Universities UK, which represents higher education institutions, acknowledged the challenges of the labor market but defended the value of university degrees. "Graduates are more likely to have a job, earn more, and enjoy better health," said Vivienne Stern MBE, the organization’s CEO. She highlighted that the benefits of education extend beyond individual success, contributing to national growth and innovation. However, she conceded that the system has evolved, and today’s graduates face a more complex financial landscape.

The government has maintained that the student loan framework remains a fair and effective model. In a statement, officials noted that repayments are tied to income, ensuring that graduates only pay when they can afford to. They also pointed to efforts to improve accessibility, such as raising the repayment threshold since 2021 and reinstating targeted maintenance loans. "We recognize that some graduates have concerns about the cost of student loan repayments and understand why this is an important issue," the statement added. Yet, critics argue that these measures do not fully address the growing discontent.

Meanwhile, the British Social Attitudes survey’s findings reveal a deeper societal divide. While 34% of people now question the return on investment from university, 36% still believe it provides long-term advantages. This split highlights the nuanced views on higher education, with some viewing it as a gateway to opportunity and others as a financial gamble. The survey also noted that public opinion is shaped by broader economic factors, including inflation, housing costs, and employment trends.

Impact on Future Generations

Concerns over the system’s sustainability have intensified as the repayment threshold freeze is set to last for three years. Graduates who began borrowing in 2012 face a higher likelihood of repaying their loans earlier, with many struggling to see the end of their debt. The NUS has called for a reevaluation of this decision, warning that it could lead to a generation unable to afford homes or start families. "The current path risks leaving young people with no financial cushion for the future," said Stanley, adding that reforms are essential to align the system with modern realities.

Experts and student organizations are pushing for structural changes to ensure the system remains equitable. While the government has capped interest rates at 6% for Plan 2 loans, they have not yet addressed the long-term implications of freezing the repayment threshold. For Gemma, this means living with a debt that has grown despite her stable income. "I wouldn’t say it’s not worth it," she said. "It took me from a low-income background into a job I love, but the burden of repayment has made it harder to enjoy the fruits of my labor."

As the inquiry progresses, it will likely uncover more stories like Gemma’s, illustrating the human cost of financial policy. With over 50,000 written submissions from graduates, the committee faces mounting pressure to propose solutions that balance accessibility with affordability. Whether these changes will ease the burden or reshape the perception of higher education remains to be seen, but the dialogue has already sparked a reevaluation of the system’s design. For now, the debate continues, with the future of university funding hanging in the balance.