A new inquiry into England’s student loan system has shed light on the rising doubts surrounding the value of a university education. Recent findings reveal that an alarming one-third of the population now believes that a degree is not worth the investment of time and money, marking the highest level of skepticism seen in the last two decades.
Significant Shift in Public Perception
The British Social Attitudes survey, which has charted public opinion on various issues, found that in 2025, 34% of respondents felt that attending university was a poor return on investment, a stark increase from just 14% in 2005. This shift in sentiment reflects a growing unease about the financial burdens associated with higher education. Concurrently, the belief that a degree leads to substantial long-term benefits has also dwindled, dropping from 50% to 36% over the same period.
As MPs begin their examination of the student loan system, they are hearing testimonies from graduates and student organisations. The National Union of Students (NUS) has emphasised the need to address concerns regarding the repayment threshold and interest rates, arguing that current policies do not adequately support lower-earning graduates. The government, however, maintains that the existing system is designed to protect these individuals, linking repayments to income and writing off loans after a 30-year term.
Personal Stories of Financial Strain
Among the voices leading the charge for reform is Gemma, a 33-year-old graduate who completed her studies in 2016. She describes her experience with student loans as a “draining” burden, with her debt swelling from £34,105 to £41,908 due to accumulating interest that surpasses her repayments. Despite landing a job in the tech sector with a salary nearing £50,000, Gemma finds herself postponing significant life decisions, such as starting a family, due to the anxiety surrounding her financial obligations.
“It feels like I’m constantly chasing a debt that gets bigger over time; it feels like climbing a mountain,” she shared, encapsulating the emotional toll that student debt can impose on individuals.
The inquiry has attracted considerable attention, with over 50,000 individuals submitting written evidence to MPs. Many graduates express frustration over their lack of understanding regarding the terms of their loans when they first enrolled, leading to feelings of betrayal as they navigate the repayment process.
The Case for Change
As the Treasury Select Committee engages with graduates’ concerns about their debts, the NUS is advocating for a reassessment of the repayment threshold, which is set to freeze at £29,385 from April 2027 for a period of three years. This decision is seen as contrary to the original intentions of the student loan scheme, which aimed to provide a fair opportunity for graduates to manage their debt.
Alex Stanley from the NUS highlighted the pressing need for a “course correction” to prevent a generation from being locked out of home ownership or family life. He noted that many graduates are grappling with financial uncertainty, making it increasingly difficult to discuss future plans such as pensions or mortgages.
Vivienne Stern MBE, Chief Executive of Universities UK, acknowledged the challenges within the current labour market but argued that graduates typically enjoy better job prospects and health outcomes than non-graduates. She stressed the importance of maintaining a robust pipeline of graduates to support the nation’s economic growth.
A Call for Fairness and Transparency
During the inquiry, Sir Philip Augar, who previously chaired a panel reviewing England’s post-18 education system, called for an urgent reassessment of Plan 2 loans. He warned against the gradual alteration of loan terms under successive governments, describing it as “complicated, almost sneaky” and detrimental to trust in the education system.
Stern echoed this sentiment, emphasising that the student loan system must be perceived as fair and transparent. She advocated for a shift in focus towards the actual monthly repayments graduates make, rather than the intimidating overall debt figures, which contribute to the psychological burden felt by many.
The NUS and the graduate campaign group Rethink Repayment are united in their call for action, arguing that reversing the freeze on repayment thresholds is vital. Oliver Gardner, founder of Rethink Repayment, warned of an “inter-generational crisis,” where graduates may find themselves unable to save for homes or pensions, all while facing the prospect of repaying loans well into their 60s. This situation poses not only a personal challenge for individuals but could also lead to significant pressure on state resources.
The government has defended its decision to freeze the repayment threshold, capping interest rates on Plan 2 loans at 6%. They acknowledged the concerns expressed by some graduates and highlighted recent increases to the repayment threshold, the first adjustment since 2021, alongside targeted maintenance loans.
Why it Matters
The findings of this inquiry come at a pivotal time for higher education in the UK, as they reflect a profound shift in public sentiment regarding the value of university degrees. With more individuals questioning the return on investment of higher education, it is crucial for policymakers to address these concerns. Ensuring that the student loan system is fair and transparent could not only restore trust among current and prospective students but also shape the future landscape of education and economic opportunity in the UK.