Two thirds of British students now believe that the cost of university education does not justify the benefits gained from earning a degree, highlighting growing concerns around value for money in higher education. This rising dissatisfaction coincides with tuition fee increases, which reached £9,535 annually in England and Wales this September, with no government assurances against further hikes in line with inflation.

A YouGov survey of nearly 1,000 UK home undergraduates found that 66% consider the combination of education quality and graduate salaries insufficient relative to the price paid. This represents a notable shift compared to 2012/13 data when tuition was £9,000 per year and less than half (53%) viewed their degrees as poor value for money. The experience of students during the Covid-19 pandemic has further contributed to dissatisfaction, as many, like chemical engineering graduate Hoda Hassan, felt short-changed. Hassan, who graduated in 2022, lamented restricted access to facilities such as labs due to pandemic restrictions, yet was charged full fees. She also struggled to secure relevant employment post-graduation without practical industry experience, which she believes universities failed to provide adequate support for.

The evolving job market, accelerated by technological advances such as artificial intelligence, is also reshaping perceptions of higher education’s worth. Harry Godfrey, co-founder of the educational consultancy Degree Gap, explained to The Independent that university degrees, once regarded as a guaranteed pathway to good employment, no longer hold the same transformative power. With graduate job opportunities shrinking, he warned that traditional degree courses risk becoming too rigid to meet emerging skill demands. Instead, he pointed to alternative pathways like degree apprenticeships, which offer hands-on skills and avoid the accumulation of significant student debt.

Indeed, changes to student loan repayment terms introduced in 2023 now require graduates to repay loans over a longer period, up to 40 years, before any remaining debt is written off. Current estimates suggest over a third of students may never fully repay their loans, adding to financial pressures on graduates. Government statistics for 2023-24 reveal a sharp rise in accrued interest on student loans, from 4.6% to 7.4% of the loan balance year on year, intensifying concerns over the cost of higher education.

Despite these challenges, the majority of students still express satisfaction with their academic experience and hold optimistic views about their futures. Approximately 80% say they are satisfied with the quality of their chosen courses, and 78% believe a degree will help them secure desirable employment. Moreover, 66% anticipate being financially better off in the long run due to their degree. However, a notable minority—around 18%—feel their qualification will have little impact on their lifetime earnings.

The collective voice of universities, Universities UK, acknowledged the financial weight of attending university but maintained an optimistic outlook. A spokesperson highlighted that, on average, graduates earn higher wages, exhibit better mental health, and show greater economic resilience, thanks to adaptable lifelong learning skills cultivated during their studies. Nonetheless, with tuition fees poised to rise further and shifting market realities, it remains to be seen how universities will adapt to continue offering value to students.

Complementing these findings, other research from Save the Student indicates a somewhat more positive student perspective, with 57% considering university good value for money in 2023, up from 49% in 2021. Still, over half of those seeking financial assistance reported difficulties in accessing support, despite some improvement year-on-year. This reinforces ongoing concerns about the affordability and accessibility of university education in the UK.

Government guidance outlines repayment plans for student loans, with postgraduate students beginning repayments the April following course completion. Repayments are income-contingent, typically set at 6% of earnings above approximately £21,000, though thresholds vary by plan type. Borrowers earning below these thresholds may be eligible for refunds, offering some relief amid rising debt burdens.

In summary, the debate over university value for money encapsulates complex dynamics involving rising costs, pandemic disruptions, shifting labour market demands, and evolving student expectations. While many remain confident in the long-term benefits of a degree, increasing numbers question whether the substantial financial and personal investment now warranted aligns with their academic and career outcomes. Hear more about how student perceptions on universities and the student experience are changing directly from the students themselves on December 4th at Wembley Stadium.