In a landscape increasingly fraught with financial uncertainty, a significant portion of the British public is questioning the value of a university degree. As an inquiry into the student loan system in England gets underway, new research reveals that one in three people believes the time and money spent on higher education may not be worth it. This growing sentiment coincides with concerns from graduates regarding their mounting debts and the sustainability of the current loan system.
A Shift in Public Perception
The British Social Attitudes survey, which has monitored public opinion on various issues over the decades, indicates a striking change in attitudes towards higher education. According to recent findings, 34% of respondents in 2025 felt that a university degree “isn’t worth the amount of time and money,” a stark increase from just 14% in 2005. This marks the highest level of discontent regarding the value of degrees in the past twenty years.
Compounding this issue is a noticeable decline in the belief that university graduates are significantly better off financially in the long term, with those sentiments dropping from 50% in 2005 to 36% in 2025. The inquiry led by the Treasury Select Committee aims to address these pressing concerns, as MPs listen to testimonies from graduates and student organisations.
Voices of Concern
Among the most affected are those graduates who took out Plan 2 loans between 2012 and 2023. Gemma, a 33-year-old tech professional, shared her story with the BBC, highlighting the burden of her student loan debt. After graduating in 2016, her initial debt of £34,105 has ballooned to £41,908 due to interest accruing faster than her repayments. While she acknowledges that her degree has opened doors, allowing her to transition from a low-income background to a job earning just under £50,000 annually, she describes the financial strain as “draining.”
“It feels like I’m constantly chasing a debt that gets bigger over time; it feels like climbing a mountain,” she lamented. The psychological toll of her loans has also influenced significant life decisions, such as delaying starting a family with her partner, as the spectre of accruing interest looms over them.
The inquiry has attracted over 50,000 written submissions from graduates, many expressing confusion over the terms of their loans when they signed up. Currently, graduates are required to repay 9% of their earnings above a threshold, which is set to freeze at £29,385 from April 2027 for three years. This change has raised alarms among advocates like the National Union of Students (NUS), who argue that it will force more graduates into early repayments.
Calls for Change
Alex Stanley from the NUS emphasised the need for a reassessment of the repayment threshold, arguing that the freeze contradicts the original intentions of the student loan programme. He, along with other advocates, warns that without corrective measures, an entire generation may be hindered from achieving milestones such as home ownership or starting families.
Vivienne Stern MBE, Chief Executive of Universities UK, acknowledged the challenging labour market but asserted that graduates are still likely to secure better job opportunities and health outcomes. “If we want our country to grow, we need more graduates entering the labour market,” she stated, reinforcing the idea that the benefits of higher education extend beyond individual gain.
During the inquiry, Sir Philip Augar, who previously chaired a review of post-18 education, called for a “correction” to the terms of Plan 2 loans. He argued that the government has a moral obligation to maintain transparency and fairness in student loans, criticising the piecemeal changes that have led to the current predicament.
The Future of Student Loans
As discussions continue, the government has defended its decision to freeze the repayment threshold and has implemented a cap on interest rates at 6%. In an official statement, the government acknowledged the concerns of graduates regarding loan repayments and reiterated its commitment to adjusting the repayment threshold, which had not been done since 2021.
The dialogue surrounding student loans reflects broader societal issues, as young graduates grapple with financial burdens that may hinder their future prospects. The ongoing inquiry serves as a critical platform for addressing these concerns and rethinking the framework that underpins higher education financing.
Why it Matters
The inquiry into student loans is not just a bureaucratic exercise; it speaks to the heart of a generation’s hopes and aspirations. As the cost of education rises and public confidence wanes, it is imperative for policymakers to listen to the voices of graduates who feel trapped by debt. This situation has far-reaching implications, not only for individual lives but also for the economic and social fabric of the nation. Ensuring a fair and transparent student loan system is crucial for fostering a society where education is a stepping stone to opportunity, rather than a source of perpetual anxiety.
