A Third of Britons Now Question Whether a University Degree Is Worth It
BBC Business reported Tuesday that a parliamentary inquiry into England’s student loan system has opened, against a backdrop of sharply rising public skepticism about whether a university education delivers value for money.
Degree Doubts at a Two-Decade Peak
New data from the British Social Attitudes survey, released the same day, shows that 34% of people in 2025 agreed a degree is not worth the time or financial cost. That is more than double the 14% recorded in 2005 and the highest level of concern captured in 20 years. Separately, the share of respondents who believe university leaves graduates significantly better off fell from 50% to 36% over the same period.
The Treasury Select Committee is now hearing evidence from student bodies and independent experts. The National Union of Students (NUS) is urging lawmakers to reassess the graduate repayment threshold and the interest rates applied to outstanding balances.
What Plan 2 Borrowers Face
Much of the frustration centres on so-called Plan 2 loans, taken out between 2012 and 2023. One graduate who contacted the BBC described leaving university in 2016 with roughly £34,000 in debt, only to watch that balance climb past £41,000 as accruing interest outpaced her monthly repayments. Despite earning close to £50,000 a year, she told the BBC the debt felt like “climbing a mountain” and had contributed to delaying starting a family.
More than 50,000 people submitted written evidence to the inquiry, with a recurring complaint that borrowers did not fully grasp the loan terms when they signed up.
Background: How the System Works
Graduates in England currently repay 9% of earnings above a threshold. The government plans to freeze that threshold at £29,385 from April 2027 for three years, meaning more graduates will begin repayments sooner. Any balance remaining after 30 years is written off. The government has also capped interest on Plan 2 loans at 6%, and points out that repayments are always tied to earnings, protecting lower earners.
Industry and Government Response
Vivienne Stern MBE, Chief Executive of Universities UK, acknowledged a difficult labour market but argued graduates still command higher employment rates, better pay, and improved health outcomes. She added that expanding the graduate workforce remains essential to national economic growth.
The government said in a statement it recognises graduate concerns and noted it raised the repayment threshold after taking office for the first time since 2021, while restoring some targeted maintenance loan support.
Campaign group Rethink Repayment argues the threshold freeze contradicts the original terms under which students borrowed.
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